Senate GOP Megabill Grants Temporary SNAP Relief for Alaska and Hawaii, Alters Key Health and Education Policies
- Rahaman Hadisur
- Jun 29
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering the USA
Senate Republicans released the final text of their sweeping “megabill” late Friday, unveiling a flurry of policy shifts spanning nutrition assistance, health care funding, education reform, taxation, and immigration. While the legislation advances key priorities for former President Donald Trump’s administration, it has also sparked sharp reactions from advocates and industry groups across the country.
After weeks of behind-the-scenes negotiation, the bill grants the Agriculture Secretary the power to waive the cost-sharing requirement of the Supplemental Nutrition Assistance Program (SNAP) for Alaska and Hawaii for up to two years. The waiver hinges on both states actively implementing plans to reduce their high payment error rates over 60% for Alaska and more than 20% for Hawaii as of fiscal year 2023.
The states may also bypass stricter SNAP work requirements for able-bodied adults without dependents, provided they are making a “good faith effort” to comply with federal rules.
The American Hospital Association and the Federation of American Hospitals sounded the alarm over the bill’s provisions curbing provider taxes and state-directed Medicaid payments two critical funding mechanisms for hospitals. Though Republicans delayed the onset of those cuts until 2028 and added a $25 billion rural hospital stabilization fund, critics argue that the bill jeopardizes care for millions.
“This is substantially worse than its House counterpart,” said AHA CEO Rick Pollack. “The bill will result in curtailed essential services and even hospital closures, especially in rural communities.”
The White House issued a forceful statement urging swift passage, warning of political consequences if the legislation stalls.
“President Trump is committed to keeping his promises, and failure to pass this bill would be the ultimate betrayal,” said a statement obtained by POLITICO. Trump is expected to sign the bill before July 4.
In a lesser-known provision, the bill boosts a unique tax deduction for Alaskan whaling captains. The deduction, originally capped at $10,000, would now allow up to $50,000 in expenses related to sanctioned, subsistence whaling under the Alaska Eskimo Whaling Commission. The change is seen as a win for Alaska’s Republican senators Lisa Murkowski and Dan Sullivan.
Republicans revised their controversial remittance tax proposal for a second time, slashing the rate from 3.5% to just 1%. Initially pitched at 5% in the House version, the levy designed to target undocumented immigrants sending money abroad has drawn criticism from international governments, banks, and U.S. citizens with family overseas.
Despite the reduction, the provision remains a core component of the GOP’s effort to fund the broader package.
Republicans also revised education provisions following guidance from the Senate parliamentarian. Proposals to expand Pell Grants to unaccredited programs and block certain foreign nationals from aid were stripped to comply with budgetary rules.
Other notable changes include:
A new “Repayment Assistance Plan” for student loans based on borrower income.
Revised eligibility standards for Public Service Loan Forgiveness, now counting doctors’ and dentists’ residency payments.
A delayed repeal not elimination of Biden-era borrower defense and closed school discharge rules.
A tweaked “do no harm” standard prohibiting federal loans for underperforming academic programs.
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