As of July 1, 2025, the U.S. Senate has passed its version of the budget reconciliation bill – stripping out several provisions that violated the Byrd Rule, but leaving in place sweeping cuts to social programs. The bill must now return to the House for reconciliation, offering one final opportunity for lawmakers and advocates to influence the final package.
Key differences from the House version
Measures struck via the Byrd Rule:
- SNAP state cost-sharing mandate
- Student loan repayment caps and deferment reforms
- Restructuring of the Consumer Financial Protection Bureau (CFPB)
- Public broadcasting and EPA deregulation measures
Modified:
- New Medicaid work requirements impact more parents (those with children 14 or older, rather than 18 or older)
- ACA subsidy phase-out timeline extended to end of 2026 keeping premiums capped at 8.5% of income for eligible individuals earning up to 400% FPL
Maintained/added:
- Large-scale cuts to housing, mental health, food security, and education grants
- Repeal of ARPA-funded health investments (community health centers, rural providers, behavioral health capacity, mental health and substance abuse block grants)
- Expansion of tax cuts that reduce available discretionary revenue
In short, here’s what we’re most concerned about.
- Medicaid and ACA subsidies: Georgia stands to lose over $5.5 billion annually, impacting health coverage, provider stability, and community health outcomes.
- SNAP: Work requirement changes remain with stricter state waiver limits. The impact on Georgia is estimated at $65-90 million for administrative cost increases, and an estimated 70,000 to 90,000 Georgians could face benefit losses or reductions.
- Block grants (CSBG, ESG, VOCA, VAWA, Mental Health): Georgia is estimated to lose $300-500 million.
- 21st Century Learning Centers: Georgia afterschool programs are projected to lose $28 million annually.
- Higher Education: Over $1.2 billion in student aid and support will be taken from Georgia colleges and students.
- 50% cuts to NEA and NEH funding: This figure represents $15-20 million annually for arts and humanities programs serving Georgia communities.
- Reduction in the historic preservation fund supporting State Historic Preservation Offices (SHPOs) in Georgia while rescinding $267 million in funding for National Park staffing, further weakening historic and cultural site preservation.
Next steps in congress:
- The bill returns to the House for consideration.
- Lawmakers can accept, amend, or negotiate further changes.
- A vote will take place in the House by July 31, ahead of the August break.
Steps that nonprofits and civic leaders must take to influence this bill
- Urge U.S. House members to:
- Reject “as-is” passage – insist on modifications. Ask House Members to oppose final passage without key amendments that protect vulnerable populations and local service infrastructure.
- Withdraw administrative mandates that increase state and nonprofit burdens such as expanded reporting in Medicaid and SNAP work requirements.
- Restore block grant programs that serve as core infrastructure such as CSBG and Emergency Solutions Grants (ESG), as well as funding for legal services, NEA, NEH, and historic preservation investment.
- Reverse caps or reductions to programs with “high economic multipliers” such as 21st Century Community Learning Centers, subsidized childcare and afterschool care, and FQHC and HRSA primary care block grants.
- Retain common sense provisions, like maintaining Medicaid for currently enrolled children, seniors, and people with disabilities; and preserving rural health and housing supports.
- Implement targeted “damage control” measures where cuts are unlikely to be reversed, such as phase-in periods for major policy shifts and mitigation set-asides for states like Georgia with higher rates of poverty and nonprofit delivery systems.
- Provide facts and impact data for local areas, such as:
- Using local data to brief elected officials as well as business leaders and chambers of commerce, which can have significant influence on congressional leaders.
- Issuing statements and organizing coalition sign-on letters to ensure congressional leaders hear from local stakeholders.
This reconciliation bill is one of the most consequential fiscal proposals in recent history. Nonprofits, local governments, and philanthropy must act quickly and collaboratively to influence outcomes, protect core services, and mitigate harm to Georgia’s most vulnerable communities.
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