While many Alabamians were preparing for the July 4 holiday, Congress passed the One Big Beautiful Bill Act — a sweeping federal budget law with serious consequences for families across the country, including right here in Alabama.

The Center on Budget and Policy Priorities put it plainly: “House and Senate Republicans have now passed a bill that will raise families’ food and health care costs, increase poverty and hunger, take health coverage away from millions of people, and drive up deficits — all to give costly tax cuts to the wealthy and corporations.”

Alabama Arise put together two fact sheets detailing what we know about how this bill will affect both food assistance and health care. See below for a few key takeaways from each piece.

What we know about the health care changes in the new federal budget law

We want to be clear: We do not expect anyone in Alabama to be immediately kicked off their health coverage because of this law. However, the long-term consequences are serious and far-reaching. This law makes it more difficult for people to access coverage, and it limits Alabama’s ability to strengthen our health care system in the future.

Here’s what we know so far:

Work reporting requirements and six-month eligibility redeterminations target adults covered through Medicaid expansion. Since Alabama hasn’t expanded Medicaid, these provisions are unlikely to affect us directly at this time.
The law eliminates key financial incentives created to encourage Alabama and other states to expand Medicaid. We no longer will be eligible for $619 million in additional funding to expand Medicaid in the future, which would have helped pay for the startup costs of Medicaid expansion.
The law also includes restrictions on provider taxes — a key tool Alabama uses to help fund its share of Medicaid. We believe the most harmful restrictions would only apply if Alabama chooses to expand Medicaid in the future. This provision will make it more difficult for Alabama to consider expansion going forward, and the cap on provider taxes for Alabama will put a long-term limit on how our state finances Medicaid as health care costs rise.
The law failed to renew enhanced subsidies that have made Marketplace plans more affordable for thousands of Alabamians since 2021. These enhanced subsidies will go away at the end of 2025.

Read our fact sheet for more on what's changing on Healthcare.gov, how these changes will affect providers and rural hospitals, and how Alabama Arise and Cover Alabama are taking action.

What we know about the SNAP changes in the new federal budget law

The federal One Big Beautiful Bill Act does not immediately cut or end food assistance benefits for people who now receive them. People who are now getting food assistance under the Supplemental Nutrition Assistance Program (SNAP) should continue receiving their monthly benefits normally for the foreseeable future, just as they have in the past. But the law likely will harm many participants and strain state budgets in coming years.

The act includes three major types of changes to SNAP. The law will create new burdens on state budgets, which could lead some states to seek to reduce the number of SNAP participants or even opt out of the program altogether. It will place new requirements and limits on many people who participate in SNAP in the coming years. And it likely will reduce the amount of SNAP assistance over time.

Read our fact sheet for more details on each of these changes.

What Alabama Arise is doing — and how you can help

Even in the face of harmful federal policy, Alabama Arise’s commitment to the people of our state is strong. We will continue working to improve the lives of Alabamians who are marginalized by poverty.

Arise is taking numerous steps in response to the passage of this law. These actions include:

Analyzing the law’s long-term impact on health care and food assistance in Alabama.
Creating resources for partners, community organizations and the public to explain these changes and what they mean.
Meeting with state and local leaders to discuss options and ensure they understand the financial and human stakes of these changes.
Offering presentations and briefings across the state to help Alabamians prepare and respond.

We will keep moving forward — and we’ll do it together. Please contact one of our organizers if you are interested in hosting an advocacy training or information session in your area. Thank you for your support of Arise and our vision of a better Alabama for all.