New Report Exposes Devastating Impact of Trump's Budget on America's Social Safety Net Programs

PR Newswire
Tuesday, August 5, 2025 at 3:00pm UTC

New Report Exposes Devastating Impact of Trump's Budget on America's Social Safety Net Programs

PR Newswire

Innovating for the Public Good Reveals the Red Tape Barriers to Social Safety Net Programs,
Increased by One Big Beautiful Bill Act

WASHINGTON, Aug. 5, 2025 /PRNewswire/ -- A new report from Innovating for the Public Good: R&D for Democracy (IFPG) reveals that the recently enacted One Big Beautiful Bill Act not only delivers the most sweeping budget cuts to America's social safety net in modern history, but it also adds a maze of bureaucratic red tape that will leave millions of families at risk of losing essential benefits.

The report, titled "Barriers to Benefits: The Decline in Public Trust," is divided into two sections: a national analysis and nine individual state profiles. Nationally, it focuses on how the One Big Beautiful Bill Act undermines three major pillars of the U.S. social safety net — the Supplemental Nutrition Assistance Program (SNAP), Medicaid and the Affordable Care Act (ACA). The state analyses detail access to SNAP, Temporary Assistance for Needy Families (TANF) and Medicaid across nine representative states.

Each state profile includes program structures, eligibility requirements, demographics of recipients, application processes and the estimated number of families affected by the Trump-backed legislation. The report underscores how not only draconian funding cuts but also increased documentation and reporting requirements are creating new hardships. Red tape, it warns, is being used as a tool to deny essential services at a time when costs are rising and jobs are being lost due to other funding cuts.

National Consequences

  • SNAP: A 20% cut in funding — $186 billion through 2034. Most states must now cover 5–15% of benefit costs or restrict eligibility. Expanded work requirements would drop approximately 2 million people from the program.

  • Medicaid: Over $1 trillion in cuts over the next 10 years — the largest reduction in the program's history. New mandates require states to check Medicaid recipients' eligibility every six months instead of annually and include additional work requirements for parents and childless adults.

  • ACA: Enhanced subsidies will expire at the end of 2025, increasing out-of-pocket costs by over 75% on average and resulting in approximately 4.2 million people losing coverage. Combined with Medicaid losses, the number of uninsured will rise by an estimated 17 million people under the Trump bill.

State-Level Impact
The report includes data from nine states — Arizona, Florida, Georgia, Michigan, Minnesota, New Hampshire, North Carolina, Pennsylvania and Texas — providing a representative sample.

  • Complicated Applications: Although many states (all but North Carolina in this report) use consolidated application forms for SNAP, TANF and/or Medicaid, applicants face unclear and complex instructions due to varying eligibility criteria and requirements across programs.

  • Intrusive Requirements: Standard application forms demand detailed personal information for all household members, including work history, income sources, criminal records, disability status, education level, utility costs, insurance coverage and financial assets, including bank and retirement accounts.

  • State-Specific Barriers: Some states impose additional rules. For example, Georgia requires proof of paternity for children to qualify for TANF and an accounting be made for TANF funds spent on establishments such as liquor stores, casinos, adult entertainment stores, cruise ships, and spa and massage parlors.

  • Ongoing Burdens: After filing, personal interviews are either mandatory or conducted as needed, depending on the state. Annual renewals are required, but in most cases, they are initiated administratively by the state.

"Much of the public conversation on the Big Beautiful Bill or, as it should be called, the Big Betrayal Bill, has focused on the dollar amounts being cut, but the real story lies in how the bill weaponizes bureaucracy — making it harder to apply for, stay enrolled in or even understand what's required to receive basic support," said Page S. Gardner, Founder of IFPG. "That's how trust in government is eroded."

While the report does not directly measure public opinion, IFPG warns that the effect of this legislation is likely to deepen the public's distrust in government.

"In every state we studied, the story is the same. It's not just the cuts. It's the complexity. The fine print. The hoops. And it's eroding something far more fragile than funding: trust in our public systems," said Omar Parbhoo, CEO of IFPG. "That's why IFPG exists. We're exploring tools, strategies and partnerships needed to restore trust in public institutions, among other issues facing our democracy."

IFPG's mission is to address the underlying dynamics weakening our democracy by developing, testing and scaling new tools and strategies that make deep, generational change focused on rebuilding public trust in government and realigning democracy to reflect the values and meet the needs of the majority.

Research for this report was conducted by William Johnstone, author of the recent book, "Wyche Fowler: A Political Life in Georgia, Congress, and Abroad."

Download the report: https://innovatingforpublicgood.org/wp-content/uploads/2025/08/Barriers-to-Benefits_The-Decline-in-Public-Trust_A-Nine-State-Study.pdf

Learn more about IFPG: www.innovatingforpublicgood.org

For media inquiries, email: innovating@innovatingforpublicgood.org

About Innovating for the Public Good: R&D for Democracy
Innovating for the Public Good is a bold, new effort to understand, engineer and apply new approaches and tools that are needed to not only address the underlying dynamics that weaken U.S. democracy, but also promote a different, forward-looking future that is based on rigorous research and strategies that borrow from the private sector. innovatingforpublicgood.org

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