Proposed federal cuts to Medicaid, SNAP could cost Oklahoma $1 billion

President Trump's "Big Beautiful Bill" passed the House last week and is waiting for a hearing from the U.S. Senate. That bill currently includes cuts to both Medicaid and SNAP, putting the burden on individual states. State lawmakers respond to the potential impact this would have on Oklahoma's state budget.

What is being proposed in the “Big Beautiful Bill”?

The legislation passed out of the U.S. House last week and is now awaiting a hearing in the Senate. The legislation includes tax cuts, border security funding, and major cuts to federal programs, including Medicaid and SNAP.

The cuts would put the burden on individual states. 

How many Oklahomans use SNAP benefits? 

In 2024, SNAP, the Supplemental Nutrition Assistance Program, served nearly 700,000 Oklahomans. This represents roughly 17% of the state's population, or about one in six residents.

Additionally, there was about $1.5 billion in SNAP benefits spent in Oklahoma grocery stores in 2024.

How will this impact Oklahoma’s budget?

State lawmakers recently finalized their FY’26 budget, which tops out at $12.59 billion.

If the federal legislation is finalized as is, the Medicaid and SNAP cuts could cost the state upwards of $1 billion. 

“It could be very expensive for the state if these things go into law,” said Sen. Paul Rosino (R), Senate Health and Human Services Chairman. “Depending on if we go from a 90/10 match to a 60/40 match on our expanded population, it's anywhere from $500 -$ 700 million, and now of course they're talking about SNAP.”

Rosino has been plugged into the reconciliation bill since Medicaid cuts were being proposed at the beginning of the year. Now that SNAP benefits are also being discussed Rosino says Oklahomans need to be paying attention.

“These types of cost burdens and shifts on the state of Oklahoma will be detrimental to taxpayers in Oklahoma and to the state budget,” said Rep. Cyndi Munson (D), House Minority Leader.

Where will the money come from to fund SNAP and Medicaid on the state level? 

While the cuts are not confirmed, lawmakers are working on possible plans to fund the programs, to ensure Oklahomans don’t miss out on the benefits. 

Regarding Medicaid, state lawmakers created the FMAP stabilization fund a few years ago, which Rosino says they could use to temporarily cover the cost.

“That money is available to us, and there's about $600 million in there so that would help us a lot with the expanded population but that's only one year,” said Rosino. “From there, we would have to do some either revenue looking at some revenue sources or we would have to start cutting services, which is a pretty scary proposition because $1 billion or $500 million even in services cut will really affect Oklahomans.”

Munson worries that the state would not be able to cover the cost for SNAP on it’s own.

“If those costs are then shifted on Oklahoma's budget and we can't pay for it, they'll either be cut or reduced on who can access those programs,” said Munson. “In a state like Oklahoma, where people are relying on these programs because of just the nature of where we're at as a state this could be very problematic.”

How are state and federal lawmakers working together on this?

The total cost and timeline are still unknown at this time, so lawmakers in the state are working closely with Oklahoma’s federal delegation to ensure that Oklahomans aren’t negatively impacted by decisions in D.C.

"We want Oklahomans to know we are paying very close attention, we are working with our federal contingency and just to stay calm until we know really what's happening, and then from there we'll try to get a plan together to protect Oklahoma," said Rosino.

"There is time, but we really need Oklahomans to pick up the phone, get on the computer, reach out to our federal delegation and explain that this is going to be harmful to us," said Munson.

What is next for the “Big Beautiful Bill”?

The bill is now in the hands of the U.S. Senate, where changes are expected.

“The sky is not falling, we're watching this closely, but Oklahomans should be paying attention,” said Rosino.