On July 4th, 2025, President Donald Trump signed into law H.R. 1, commonly referred to as the “One Big Beautiful Bill Act,” a budget reconciliation bill that is poised to reshape social service program administration, introducing new work requirements for Medicaid and SNAP. For state agencies, this means navigating increased administrative burdens, potential fiscal strains, and the critical need to help essential services reach those who need them most. At Equifax, we understand these challenges are immense for programs to address. That's why we sat down with Ali Appleton, a member of our Government Relations team, to discuss new mandates and explore how technology can be your compass in trying to determine the impact of the bill while helping to provide continued support for your eligible beneficiaries.
Q1: Ali, with all the buzz around the new administration, how are changes impacting social service programs, particularly concerning work requirements?
Ali: This is definitely one top-of-mind issue right now. The current administration's policies, notably through the recently passed "One Big Beautiful Bill Act," are enacting significant changes, including new work requirements for vital safety net programs like SNAP and Medicaid. This legislation reflects a broader effort to reshape federal spending and increase state accountability in program administration, with a strong emphasis on tying benefit receipt more directly to work or community engagement.
Q2: Could you dive a bit deeper into the specifics? What are the key legislative provisions driving new work requirements for Medicaid and SNAP benefits?
Ali: Absolutely. Now that the "One Big Beautiful Bill Act" has passed, it has solidified key provisions on work and community engagement requirements for individuals receiving Medicaid and SNAP.
For Medicaid, the bill mandates that many adults aged 19 through 64 in Medicaid expansion states must work, attend school, or perform at least 80 hours of community service per month to maintain eligibility. While exemptions exist for certain groups like pregnant individuals, the medically frail, and parents caring for children under 14, states will face increased responsibilities for verifying compliance. In addition, compliance checks will go from annually to at least every six months for Medicaid. The implementation deadline for states is December 31, 2026, with federal guidance expected by the end of 2025.
When we look at SNAP, the changes are also substantial:
The work requirement for Able-Bodied Adults Without Dependents (ABAWDs) has been expanded to include individuals aged 55 through 64, up from the previous age of 50.
The parental exemption has been narrowed; parents of children aged 14 or older may now be subject to work requirements.
Prior exemptions for veterans, individuals experiencing homelessness, and youth aging out of foster care have been removed, meaning these groups are now also subject to work requirements.
States face stricter limitations on their ability to waive work requirements and now waivers are generally only allowed in areas with unemployment rates above 10%.
For the first time, states may be required to pay a portion (5% to 25%) of the actual SNAP food benefit costs. States with a payment error rate above 6% will be required to contribute to the cost of SNAP benefits, based on a sliding scale related to error rates, starting in fiscal year (FY) 2028. This can potentially add to the administrative costs, significantly increasing the financial burden on states’ budgets.
The bill also includes limitations on future benefit increases by restricting updates to the Thrifty Food Plan and changes how utility expenses are calculated, which could reduce monthly benefits for some.
Q3: That sounds like a lot for states to absorb. What kind of impact do you foresee these enacted changes having, both on states and, critically, their beneficiaries?
Ali: You’re absolutely right; these enacted changes are expected to place immense burdens on state budgets and administrative agencies.
For states, this means:
Increased Administrative Costs: Significantly higher costs for implementing, monitoring, and enforcing work requirements, including substantial IT system upgrades, additional staffing for eligibility determinations and compliance tracking, and enhanced data matching capabilities.
Direct Financial Burden: The new state cost-sharing for SNAP benefits will directly impact state fiscal health.
Operational Strain: Agencies will need to manage vastly increased eligibility redeterminations, more frequent compliance checks (at least every six months for Medicaid), and complex exemption verification processes.
Now, for beneficiaries, the impact could be significant for affected individuals:
Loss of Critical Services: Millions of individuals, including children, seniors, and non-elderly adults with disabilities, are estimated to lose some or all of their SNAP or Medicaid benefits. This can lead to increased food insecurity and reduced access to essential healthcare.
Administrative Hurdles: Many people who are otherwise eligible or exempt may lose benefits due to administrative complexities, difficulty documenting their status, or simply navigating the "red tape."
Reduced Economic Security: The changes could exacerbate poverty and hardship, particularly for vulnerable populations and those in low-wage or unstable jobs who struggle to consistently meet strict hourly requirements.
Q4: Given all of these changes, what are the biggest challenges or perhaps even opportunities that these legislative efforts present for state agencies from an implementation perspective?
Ali: Implementing these large-scale changes is a monumental challenge for state agencies.
From a challenge perspective, they’re facing:
Policy and System Overhaul: Agencies must develop entirely new policies, overhaul existing IT systems to track and verify work and exemption statuses, and integrate data from various sources (e.g., employment, education, volunteer organizations).
Staff Training and Capacity: Extensive and ongoing training is required for all staff on the new rules, complex exemptions, and communication strategies, particularly to help beneficiaries understand and comply.
Outreach and Support: A major challenge is effectively reaching and educating all affected individuals, providing clear communication about requirements, and offering robust assistance for documentation and navigation of the system.
Data and Verification: Access to timely and insightful data for millions of individuals to verify information and support compliance or exemption, especially for those with irregular work hours or informal work, will be a significant hurdle.
Addressing Barriers: States face the challenge of addressing the underlying barriers to employment (like child care, transportation, and health issues) that can prevent individuals from meeting work requirements, even if they desire to work.
However, from an opportunity perspective, these changes could present an opportunity for states to:
Innovate in Service Delivery: Drive innovation in how states deliver support services, potentially fostering more integrated systems for employment and social support.
Strengthen Partnerships: Encourage deeper collaboration between social service agencies, workforce development programs, and community-based organizations.
Leverage Technology: Accelerate the adoption of advanced technology solutions for data matching and verification, eligibility management, and beneficiary communication.
Q5: That leads nicely into my next question. Are these types of changes, particularly regarding work requirements and increased state accountability, something you see as here to stay or are they more cyclical with different administrations?
Ali: That’s a fascinating question, and one we ponder quite a bit. While work requirements and increased state accountability have been persistent themes in various forms for decades (e.g., welfare reform in the 1990s), the specific provisions and the scope of the "One Big Beautiful Bill Act" represent a significant shift. The current emphasis on these requirements is a strong feature of the prevailing political landscape.
While, yes, a future presidential administration could potentially seek to roll back or modify some of these provisions, the underlying discussions about program efficiency, integrity, and the role of work in social safety nets are likely to persist – at least for now. The implementation challenges and the projected impact on beneficiaries may also lead to future adjustments or debates, regardless of which party is in power. However, the direct financial burden now placed on states for SNAP benefits suggests a more enduring shift in responsibility.
Q6: Finally, Ali, how can technology solutions help states meet these new eligibility determination requirements, especially for Medicaid expansion adult populations under new work requirements?
Ali: This is where the trend for state agencies seems clear: Technology solutions become more critical than ever for states to navigate these complex new requirements. Equifax’s Complete Income™ can be invaluable by providing:
Automated Data Verifications: This means access to data - current as of the last time payroll was processed by a contributing employer or payroll provider - on income, employment, and hours worked. This data can help agencies automate much of the eligibility determination process, including determining if an applicant meets minimum wage equivalents or requires work registration, significantly reducing manual verification burdens.
Streamlined Processes: By integrating with state eligibility systems, these solutions can help streamline the entire eligibility determination and redetermination process, minimizing "churn" for applicants who would otherwise face administrative roadblocks.
Appropriate Payments: Providing reliable data, as it was provided by the employer, along with leading technology, can enhance program integrity and help states meet the new accountability measures, including the state cost-sharing requirements tied to error rates for SNAP. This way, eligible applicants receive appropriately sized payments in a timely fashion.
Support for Growing Populations in Need: With the growth of the gig economy, a significant percentage of self-employed workers seek public assistance benefits.These solutions can support agencies in effectively verifying income for this growing and often complex population.
The new work requirements present significant challenges, but with the right insights and technological partners, your agency can navigate this evolving landscape effectively.
Ultimately, technology can play a crucial role in enabling states to manage the increased complexities efficiently, promote program integrity, and, ideally, help reduce the likelihood of otherwise eligible individuals losing vital benefits due to administrative hurdles.
Don't navigate these complex changes alone. Connect with us to discuss how Equifax can tailor solutions to your agency's unique needs."
Also be sure to check out our on-demand webinar, "Uncertain Times: Navigating a New Era of Eligibility" .