H.R.416 - No Welfare for the Wealthy Act of 2025 (119th Congress)
Summary
H.R.416, the "No Welfare for the Wealthy Act of 2025," aims to amend the Food and Nutrition Act of 2008 by closing what it terms the "nominal benefits loophole." The bill seeks to restrict eligibility for food and nutrition benefits (SNAP) by ensuring that all recipients meet specific income and resource criteria. This is intended to prevent individuals or households with substantial resources from receiving benefits, even if their income temporarily falls below the eligibility threshold.
The bill stipulates that the amendment will take effect one year after enactment, and it will not apply to certification periods that begin before the effective date. The bill is sponsored by Mr. Cline and several other representatives and was referred to the Committee on Agriculture.
In essence, the bill seeks to tighten eligibility requirements for SNAP benefits, focusing on preventing those with significant assets from accessing these resources.
Expected Effects
The primary effect of H.R.416 would be to reduce the number of individuals and households eligible for SNAP benefits. This would likely result in decreased federal spending on the SNAP program.
It could also lead to some individuals and families who previously received assistance being denied benefits, potentially increasing food insecurity among specific populations. The impact would largely depend on how strictly the income and resource criteria are interpreted and enforced.
Potential Benefits
- Reduced Government Spending: By restricting eligibility, the bill could lead to lower expenditures on the SNAP program, potentially freeing up funds for other government initiatives or reducing the national debt.
- Targeted Assistance: The bill aims to ensure that benefits are directed towards those who genuinely need them, preventing individuals with substantial resources from accessing welfare programs.
- Increased Program Integrity: Closing loopholes can enhance the integrity of the SNAP program and reduce the potential for fraud or abuse.
- Fairness to Taxpayers: Some argue that limiting benefits to those with limited income and resources is fairer to taxpayers who fund these programs.
- Potential for Increased Self-Sufficiency: By removing benefits from those with potential resources, it may incentivize them to rely more on their own assets and become more self-sufficient.
Most Benefited Areas:
Potential Disadvantages
- Increased Food Insecurity: Some low-income individuals and families with modest savings might be denied benefits, leading to increased food insecurity and hardship.
- Administrative Burden: Implementing stricter eligibility criteria could increase the administrative burden on state agencies responsible for administering the SNAP program.
- Potential for Errors: More complex eligibility rules could lead to errors in determining eligibility, potentially denying benefits to eligible individuals.
- Disproportionate Impact: The changes could disproportionately affect certain vulnerable populations, such as seniors or individuals with disabilities, who may have modest savings but limited income.
- Reduced Economic Activity: A reduction in SNAP benefits could lead to decreased spending at grocery stores and other food retailers, potentially impacting local economies.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, which empowers Congress to "provide for the common Defence and general Welfare of the United States." However, the interpretation of "general Welfare" is broad and subject to debate.
There are no explicit constitutional provisions that directly address the eligibility criteria for welfare programs like SNAP. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Ultimately, the constitutionality of the bill would likely depend on whether it is deemed a reasonable and non-discriminatory exercise of Congress's power to regulate welfare programs.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).