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The Federal Budget: Spending, Taxes, and Debt

OBBB Myth vs. Fact: Food Stamp Savings Don't “Slash” Spending

The Federal Budget: Spending, Taxes, and Debt Policy Rapid Response BlogAugust 4, 2025 By Matthew Dickerson
The One Big Beautiful Bill (OBBB) makes common sense improvements to the Food Stamp program that promote opportunity and address waste, fraud, and abuse. Despite unfounded claims about “slashing benefits,” these reforms would modestly roll back excessive spending increases to the Food Stamp program and direct resources to the most vulnerable Americans.

What the OBBB Actually Does

The changes made by the OBBB are common sense. The OBBB:
  • Strengthens and enforces work requirements for able-bodied adults
  • Requires states with high improper payment rates to contribute modest program funding
  • Rebalances administrative funding with states that run the program
  • Ensures that benefits grow each year with inflation, but prohibits Presidents from unilaterally modifying the benefit formula as President Biden did
  • Cracks down on gimmicks used to game the benefit formula
  • Restricts eligibility for illegal aliens

After OBBB, Food Stamp Spending Totals $996 Billion over the Next Decade

After implementation of the OBBB, federal and state expenditures for Food Stamps are projected to total $996 billion over the next decade. Annual spending would be at least 50% higher in each year than the 2019 pre-COVID Food Stamp level. Food Stamps OBBB Enacted Fed Plus State 7.25.2025 V2

OBBB Keeps Federal Food Stamp Spending 29% Above the Pre-Biden Baseline

Federal expenditures for Food Stamps over the next decade will remain well above the pre-Biden projections. Spending between FY 2025 and 2034 would total $207 billion, or 29%, above an extrapolation of the pre-Biden baseline published by the Congressional Budget Office (CBO) in February 2021. Food Stamps OBBB Enacted Vs Biden 7.25.2025

Biden’s Food Stamp Spending Blowout Would Have Increased Spending 54%

President Biden’s policies massively increased spending on Food Stamps. Spending in FY 2025 is 73% higher than it was in 2019. The CBO projected that Food Stamp spending would have been $394 billion (54%) higher between FY 2025 and FY 2034 than the pre-Biden baseline. Food Stamps Biden Spending Blowout Vs Baseline 54 Percent 7.25.2025 The Biden Administration took several steps to intentionally and permanently increase the level of Food Stamps spending:
  • Biden unilaterally increased Food Stamp benefits in 2021 by 21% above inflation through a “reevaluation” of the Thrifty Food Plan, which is used to calculate benefit levels.
  • The American Rescue Plan Act increased the maximum Food Stamp benefit by 15% through September 30, 2021.
  • The Biden Administration extended Food Stamp emergency allotments through February 2023, even after President Biden declared “the pandemic is over.”

The OBBB Protects the Most Vulnerable

The OBBB makes important improvements to the Food Stamp program. These reforms would address waste, fraud, and abuse by closing loopholes and requiring states to do a better job of administering the program. This will put the Food Stamp program on a more sustainable path and re-prioritize resources for those who need them the most.

Author

Matthew D. Dickerson

Matthew D. Dickerson

Director of Budget Policy

Matthew D. Dickerson is Director of Budget Policy at the Economic Policy Innovation Center (EPIC). Dickerson is recognized as an expert on fiscal policy issues, including the budget, appropriations, and entitlement reform. His articles have been featured in the Wall Street Journal , the Miami Herald , National Review , the Sacramento Bee , the Washington Times , the Baltimore Sun , The Hill , the Washington Examiner , and other outlets. Prior to joining EPIC, Dickerson served as Senior Policy Advisor on the staff of the House Budget Committee, where he helped lead development of the fiscal year 2024 budget resolution. He has a dozen years of experience on Capitol Hill, including as a senior staffer with the Republican Study Committee (RSC), the caucus of conservatives in the House of Representatives. Under four different RSC chairmen, Dickerson held senior level roles including Policy Director and Senior Policy Staff. Additionally, he served as Legislative Director and other policy positions for the late Congressman C.W. Bill Young (R-FL), a former Chairman of the powerful House Appropriations Committee. During his tenure at The Heritage Foundation, Dickerson was Director of the Grover M. Hermann Center for the Federal Budget. In this capacity, he oversaw a team of budget analysts and economists researching diverse subjects including spending, entitlements, budget process, tax, labor, pensions, and infrastructure issues. He has also been a Policy Manager at Americans for Prosperity, where he supervised a team of fellows and analysts covering a variety of federal and state policy issues. Dickerson is a graduate of the College of William and Mary in Virginia and holds a Bachelor of Arts in Government and History.

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