The bill tightens and enforces work requirements—protecting benefits for some who comply and exempting certain seniors—while risking coverage losses for noncompliant or vulnerable beneficiaries and shifting administrative and financial burdens onto states and low-income people.
Low-income individuals who meet the monthly work or activity requirement keep their Medicaid coverage and federal matching funds continue for their care.
Low-income individuals over 60 are exempted from SNAP work requirements, preserving their benefits without work participation.
States gain greater flexibility to enforce work participation and to target resources to beneficiaries who meet activity standards.
Many low-income individuals risk losing Medicaid coverage and access to care if they fail the monthly work requirement for three months because federal matching (FFP) can be denied, causing coverage gaps.
States and beneficiaries will face increased administrative burdens and costs to implement, verify, and enforce work requirements (updating procedures, tracking/reporting hours, verification), which can increase churn and short-term expenses.
Denying federal matching funds for noncompliant individuals shifts program costs to states or forces service reductions for affected people.
Based on analysis of 3 sections of legislative text.
Allows states to impose monthly Medicaid work requirements tied to 80 hours of activity and deny federal matching funds for noncompliance; clarifies SNAP exemptions to explicitly include people over 60.
Introduced February 21, 2025 by Eric Burlison · Last progress February 21, 2025
Allows states to require monthly work activity for Medicaid enrollees and lets the federal government withhold federal matching payments for individuals who fail those requirements after several months; also changes who is exempt from SNAP work requirements by explicitly exempting people over 60 and removing certain existing exception language. The changes create a new, 80-hour-per-month standard for qualifying activity (work, community service, training, or education) and let states disenroll individuals for months when federal matching funds are denied.