Iowa faith leaders call on Grassley and Ernst to protect Medicaid, SNAP from cuts

Iowa Republican U.S. Sen. Chuck Grassley praised President Donald Trump's "big beautiful bill" Wednesday as 80-plus Iowa faith leaders warned of devastating impacts on vulnerable populations in Iowa from changes to federal social safety net programs.

Grassley, speaking to The Gazette Wednesday during a media conference call, said the bill aims to support working families and “supercharge small businesses” by making permanent Trump’s 2017 tax cuts set to expire later this year.

“Passing this bill is a win for families and a win for small businesses and a win for America,” Grassley said.

He said the budget reconciliation and tax bill is aimed at preventing a $4.7 trillion tax increase over 10 years, supporting families with a $2,200 child tax credit indexed to inflation, extending the small business tax deduction, and introducing new incentives for domestic investment.

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Grassley addressed concerns that the bill cuts taxes for billionaires, clarifying that the 2017 tax rates remain unchanged under the bill.

The Senate also is considering several changes to Medicaid and the Supplemental Nutrition Assistance Program, or SNAP (formerly known as food stamps). They include reforms to eligibility and enrollment processes, and changes to federal funding for certain states.

The changes are aimed at curbing spending and addressing perceived inefficiencies within the program, but also face criticism for potentially harming socioeconomically disadvantaged individuals and families.

The Senate Finance Committee released legislative text Monday making changes to the bill. It includes changes to Medicaid provisions of the House-passed bill, including but not limited to alterations to provider taxes in states that expanded Medicaid under the Affordable Care Act, state directed provider payments and work requirements.

To limit program growth and federal spending for the joint federal-state health care program for Americans with disabilities, the elderly and low-income people, the Finance Committee proposes several measures.

The Senate’s version would require nonpregnant, nondisabled, childless adults aged 19-64, to complete a minimum of 80 hours of work, community service or educational participation monthly in order to qualify for Medicaid. Federal guidelines are due by the end of 2026, and states must implement this by 2027. It includes several exemptions, including for veterans with a “disability rated as total,” individuals who are medically frail, young people in foster care through the age of 26, among other groups.

It also adjusts Medicaid eligibility and enrollment processes, effective in 2026 and 2027, including eliminating temporary state incentives for Medicaid expansion and increases the frequency of eligibility verifications to every six months, as opposed to once a year.

It also reduces federal matching funds for states serving undocumented immigrants and allows states to deny coverage during immigration status verification.

Medicaid expansion enrollees earning more than 100 percent of the federal poverty level would be required to pay cost-sharing amounts up to $35 per service, with exception of primary, prenatal, pediatric or emergency care.

It would lower the provider tax in states that expanded Medicaid under the Affordable Care Act, cap state-directed provider payments for Medicaid expansion states, and repeal a rule requiring minimum staffing standards for long-term care facilities.

The Senate Agriculture Committee released changes to SNAP that would increase state cost-sharing, expand work requirements and require cost neutrality for updates to the Thrifty Food Plan.

Grassley argued that, unlike the House version, the Senate is not making states pick up a big share of food stamp costs, and is focused on reducing “waste, fraud, and abuse” in SNAP programs.

“All we're doing is leaving up to the states the administrative costs of the program,” he said. “… And we're also trying to take the waste, fraud and abuse out of it by states. Starting in 2028, states that have an error rate of over 6 percent would be penalized, and that’s all we’re doing.”

As for Medicaid, Grassley said work requirements are seen as good policy for those who can work, but exemptions apply for those unable to work, such as caretakers and people with disabilities. He emphasized that benefits for the most vulnerable will not be cut, and Medicaid requirements are modeled after those already in place for food stamps. He noted the Iowa Legislature has passed work requirements for Medicaid.

Letter urges senators to vote against cuts to public assistance

The Des Moines Area Religious Council (DMARC) this week sent a letter to Grassley and fellow Iowa GOP U.S. Sen. Joni Ernst signed by more than 80 Iowa faith leaders urging them to prevent cuts to the public assistance programs.

The letter notes that SNAP supports more than 260,000 Iowans, while Medicaid assists some 700,000 in the state, and that these programs are vital for food security, health care and local economies.​

The leaders emphasize that charities and food pantries cannot meet the increased demand that would result from cuts.

“To cut these programs is to take away resources from each and every community in Iowa,” the letter reads. “Every dollar of SNAP is spent in local grocery stores and benefits the local economy. At a time when food insecurity is already at alarming levels, thousands more Iowans will be turning to food pantries. It would not be possible for our nonprofits, faith communities, volunteers, and donors to meet this need. Our charities are already struggling to keep up.

“We call on Iowa’s leaders in Congress to stand up for our values and stand up for the health and well-being of Iowans.”

The letter is signed by a diverse group of religious leaders from across the state.

Comments: (319) 398-8499; tom.barton@thegazette.com