How much do Americans rely on programs like Medicaid and Social Security?
During his campaign, President Donald Trump told supporters "I will not cut one penny from Social Security or Medicare." Trump has managed to keep those promises since returning to the White House, but Medicaid and other government assistance programs that help Americans pay for food, healthcare, rent, and utility bills are on the line.
House Republicans approved a massive bill with sweeping implications for millions of Americans on May 22. It could be bad news for people making less than $50,000 a year, and for recipients of Medicaid, food stamps, and student loans. The proposal, which Trump has dubbed the "big, beautiful bill," included hundreds of millions of dollars in cuts to Medicaid which may leave millions of Americans without coverage.
The so-called "One, Big Beautiful Bill" moved on to the Senate where it passed on July 1 on a 51-50 vote, requiring Vice President JD Vance to break the tie and send the bill back to the House for final approval. The legislation proposes deep cuts the Medicaid health insurance program while adding a projected $3.3 trillion to the nation's debt over a decade, which has prompted bipartisan opposition to the measure.
Here's a closer look at the various U.S. government assistance programs and how much income Americans of various ages receive from them:
How big could the cut of federal programs be? And will Medicaid remain untouched?
Proposed tax cuts passed by the House of Representatives in February seek to lower taxes by $4.5 trillion in the coming decade with $1.5 trillion in spending deductions, Reuters reported. Although the House plan does not explicitly call for cuts to Medicaid, the Congressional Budget Office said it would be impossible to get to the party's goal of $880 billion in spending reductions without touching the program.
House Republicans plan to enact work requirements and more frequent eligibility checks for Medicaid, according to a proposal released late on May 11 by a key GOP-led committee. Also, the Congressional Budget Office said it would need to cut Medicaid, to reach the party's goal of $880 billion in spending reductions.
Government funded social safety benefits such as SNAP, rental aid the Low-Income Home Energy Assistance Program, which helps cover the costs of energy bills for low income households, could lose funding under proposed budget cuts.
Nutritional assistance programs like SNAP, previously known as food stamps, provide low-income families with debit or EBT cards to pay for groceries. About 41.7 million Americans used SNAP benefits in 2024, according to the Center on Budget and Policy Priorities. That is more than 12% of the U.S. population, according to the U.S. Department of Agriculture.
Reuters reported that SNAP along with Medicaid, the federal health plan which provides coverage to 72 million low-income and disabled people are likely to face funding cuts. In order to cut $230 billion in spending at the USDA, SNAP, the department's biggest program, would be affected. UnidosUS, a nonprofit advocacy organization, reported that if the proposed funding cuts to SNAP are actualized, it would be the largest reduction in its history.
What sources of income do Americans rely on besides earnings and social security??
The U.S. Census Bureau tracks data on income, employment and participation in government assistance programs through the Survey of Income and Program Participation. That data gives a snapshot of where Americans get their income, whether through wages and salary, stocks, unemployment insurance, social security, government assistance programs like SNAP, or a combination of these sources.
According to the survey, here's how Americans earn:
More than 7 million Americans 65 and older receive at least 90% of their income from Social Security, the Center for American Progress reported. This program is one of many social safety net benefits the government funds and operates.
Income from government transfer programs on average accounted for only 2% of total income among U.S. adults ages 18 and older in 2022, according to the Census Bureau.
How does education level impact income sources?
The more formal education an individual receives, the less likely they are to rely on social insurance as part of their income, according to Census Bureau data.
Among those with less than a high school degree, women received 35% of their income from earnings, compared to 56% for men. On the flip side, women and men with advanced degrees both received 68% of their total income from earnings.
CONTRIBUTING Riley Beggin, Paste BN
Read more: Deeper Medicaid cuts, limited tax breaks for tips: What's in the Senate tax bill