SNAP Likely to be Included in Budget Reconciliation
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Newly reelected House Speaker Mike Johnson and President-elect Donald Trump plan to pass a substantial budget reconciliation package, with the goal of having it on Trump’s desk by the end of April. The package will likely include the Supplemental Nutrition Assistance Program (SNAP), with some advocates pushing for a reversal of the “massive subsidization of unhealthy foods” in SNAP. However, the 45Z clean fuel tax credits might compete for funding with Trump’s efforts to preserve his 2017 tax cuts, according to Geoff Cooper of the Renewable Fuels Association.
House Speaker Johnson and Trump’s Budget Reconciliation Package
As reported by Politico, House Speaker Mike Johnson, following his re-election, emphasized his and President-elect Donald Trump’s intention to pass a comprehensive budget reconciliation package. Johnson aims to have the bill on Trump’s desk by the end of April.
Johnson outlined the agenda to House Republicans at a retreat, highlighting their plan to merge Trump’s priorities, such as immigration, border enforcement, tax reform, and energy, into a single reconciliation package. This reconciliation bill is a significant undertaking for House GOP, given their slim majority.
NBC News explains that reconciliation allows Congress to pass party-line policies related to taxes and spending with a simple majority vote, bypassing the Senate’s usual 60-vote threshold.
Potential Impact on SNAP Funding
Though the specific contents of the reconciliation package are yet to be disclosed, experts indicate it may include the Supplemental Nutrition Assistance Program (SNAP). Agri-Pulse’s Sara Wyant reported that some provisions, like a cut to projected SNAP funding, might be part of the reconciliation bill.
Jonathan Coppess, from the University of Illinois, reinforced this view, hinting at the likelihood of SNAP’s inclusion in any reconciliation process. Coppess stated that SNAP, which runs $110 to $120 billion a year and serves between 40-42 million Americans, is a likely target.
The possibility of reconciliation including SNAP increased after Agri-Pulse’s Rebekah Alvey reported that members of the House Freedom Caucus expect Johnson to ensure the reconciliation package reduces spending and the deficit. The lawmakers also called for a reversal of the massive subsidization of unhealthy foods in SNAP.
Implications for 45Z Tax Credits
Roll Call’s David Lerman reported that Trump had expressed his desire for Republicans to work quickly on the bill. Among his demands were extensions of his 2017 tax cuts and to exempt tip income from taxes.
However, Geoff Cooper, the head of the Renewable Fuels Association, told Iowa Agribusiness Radio Network’s Mark Magnuson that 45Z clean fuel tax credits may have to compete with Trump’s efforts to preserve his 2017 tax cuts.
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