Reconciliation: What you need to know today — “Improve the CTC and don’t cut SNAP or Medicaid”

Updated February 27, 2025

For decades, RESULTS volunteers have advocated for programs that reduce poverty and oppression. Congress is considering “reconciliation” legislation that would slash support for families surviving poverty. There is no group of advocates better prepared to deliver in this chaotic moment than RESULTS volunteers. 

This blog will explain the “reconciliation” process. It will also provide updates on the legislation under consideration right now. There will be actions for RESULTS volunteers to take to protect anti-poverty programs. RESULTS will keep this blog updated as negotiations progress.  

Reconciliation is a special process for passing legislation without a large majority in Congress 

Reconciliation is a special legislative process for legislation impacting federal spending and revenues. It allows the Senate to bypass the filibuster. A filibuster is where just one Senator can stop a bill from passing. Normally, the Senate needs a large majority of 60 votes to stop a filibuster. This means the Senate can pass a reconciliation bill with a simple majority of only 51 votes. When one political party controls the House, Senate, and White House, lawmakers use reconciliation. This way, they can pass budget bills without interference from the other party. Past examples include the Affordable Care Act (2010), and the Tax Cuts and Jobs Act (or the Trump Tax Cuts of 2017). 

Reconciliation gives Congress a quick way to address national priorities. Issues like taxes, spending, and the debt limit can use reconciliation. The first step is for the House and Senate to both pass the exact same “budget resolution”. The budget resolution is a “blueprint” for congressional committees. Committees must meet certain spending or revenue levels for programs under their jurisdiction. These instructions are usually vague and non-binding. 

Once the House and Senate pass the budget resolution, the committees write the details of the legislation. Once the committee agrees on its plan, it “passes out of committee.” All committee plans then become one bill. The House and the Senate each debate and vote on their respective reconciliation bills. Sometimes there are differences between the House version and the Senate version. Congressional leaders work them out and a final bill goes back to the House and Senate for a final vote. If it passes, the bill goes to the President for a signature. Our friends at the Center for Budget and Policy Priorities (CBPP) also provide a more full explanation of the process. 

Right now, there is a budget reconciliation process underway that would cut critical U.S. anti-poverty programs 

Republican leadership in the House and the Senate want to use reconciliation. But the Senate and the House don’t yet agree on the best path forward. The Senate passed a smaller budget resolution on February 21. They hope to later pass a second one on tax policy. The House prefers “one big, beautiful bill” (in the words of President Trump). The larger House budget resolution passed on February 25. Since they are not identical, the two chambers now must agree on a unified budget resolution to move forward. 

Both budget proposals contain cuts to key anti-poverty programs like SNAP and Medicaid. As advocates, we must focus on protecting these programs.  

Republicans in both chambers want to make tax cuts passed in 2017 permanent. These tax cuts primarily helped the wealthy. They hope to pay for part of these tax cuts by cutting Medicaid and Supplemental Nutrition Assistance Program (SNAP) funding. For example, the House budget resolution requires $880 billion in cuts from the committee overseeing Medicaid. It also calls for $230 billion in cuts from the committee governing SNAP. Food assistance and health care access would evaporate for millions. Poverty would skyrocket. All to make the rich richer.  

We must protect and grow the tax credits that are vital tools for surviving poverty 

During the first Trump Administration, Congress increased the Child Tax Credit (CTC) from $1,000 to $2,000. Unfortunately, they did not provide the credit to more families working in low wage jobs. It’s likely that Republican leaders will try to make these changes permanent with reconciliation. This is unacceptable. If permanent, this CTC will continue to leave 17 million kids out of the full credit because their parents don’t earn enough. 

Thankfully, there is some bipartisan consensus that the CTC should improve. Vice President Vance and Sen. Josh Hawley (R-MO) have suggested the CTC should reach more families who work in low wage jobs. This bipartisan support is crucial for our advocacy. However, other Republicans suggest financing a better CTC with cuts to another important tax credit, the Earned Income Tax Credit (EITC). The EITC provides support specifically to families and individuals with low incomes. Cutting the EITC to fund the CTC is not okay. We must not fund anti-poverty programs by cutting other anti-poverty programs. 

The RESULTS leave behind, policy brief, and laser talk have more on advocating for tax credits. 

Medicaid is at risk in reconciliation legislation. We need to defend it. 

Medicaid is a state and federal partnership that funds health care for nearly 80 million people facing poverty. It covers health care for 54 million older adults, children and people with disabilities (see Medicaid data at the state and congressional district level). It is a lifeline for these individuals who otherwise would not be able to afford health care coverage. See the RESULTS one-page Medicaid explainer. 

Currently, the federal government pays for roughly 70 percent of Medicaid costs. Some Republicans in Congress now want to cap the amount of funds provided to states for Medicaid. This will force states to increase funding to maintain Medicaid or cut benefits and/or eligibility. (See state Medicaid fact sheets from Kaiser Family Foundation). 

There are also proposals to increase onerous work reporting requirements. These reporting requirements are not to increase employment. Instead, they will kick people off Medicaid. In 2018, Arkansas enacted work reporting requirements for Medicaid. In the first seven months, one out of four Medicaid recipients subject to the new requirements lost coverage. Congress must not repeat Arkansas’ mistake. 

We must tell Congress: don’t cut Medicaid. Fortunately, lawmakers on both sides of the aisle are speaking out in defense of Medicaid. We must amplify these messages. We must tell our lawmakers to oppose legislation that takes health care away from families. 

We must also demand that Congress does not take money from SNAP to fund tax cuts for wealthier people 

SNAP helps 40 million people per month buy food. Nearly half of those recipients are children. Usually, Congress addresses SNAP through recurring legislation called the Farm Bill. Right now though, Congress is trying to use reconciliation to cut SNAP and fund tax cuts for wealthier Americans.   

It is unclear exactly how Republicans would cut the $230 billion in food assistance that the House budget resolution demands. (See State fact sheets on SNAP from Food Research and Action Center). There are proposals for more work requirements and changing eligibility (and more). None of these are acceptable.  

The overall message: Improve the CTC and don’t cut SNAP or Medicaid 

This blog provided a lot of information about several programs. But there is really one message on reconciliation: “improve the CTC and don’t cut Medicaid or SNAP.” This is our ‘ask’ for Congress and in the media. Tell them how it will affect your community. Together, we will raise our voices!  

Thank you for all you do!