Thursday, June 08, 2023
The Passage of the Debt Limit Bill
Temperatures are rising, and so is the debate concerning the nation’s debt ceiling! After weeks of political gridlock, tense negotiations and escalating economic anxiety, President Biden signed into law H.R. 3746, the Fiscal Responsibility Act of 2023, on June 3, 2023, a bipartisan deal negotiated by him and Speaker of the House McCarthy. The bill gives final approval to bipartisan legislation suspending the debt limit and imposing new spending caps. “The economic change is just not very big relative to the baseline,” says William Gale, a senior fellow in economic studies at the Brookings Institution, in a recent AARP article, “It’s relatively close to the status quo.”
How Does This Affect Older Adults?
Even though the debt ceiling agreement is seen as relatively low impact on the economy, advocates and agencies supporting older adults and those with disabilities worry that the weight of any cut could fall heavier on vulnerable populations. In order to protect Medicare, Social Security and Medicaid, legislators agreed on a compromise that affects the Supplemental Nutrition Assistance Program (SNAP) eligibility requirements.
Stricter SNAP Requirments
The biggest change for SNAP, otherwise known as food stamps, is the eligibility rules. As a result of debt ceiling negotiations, these rules change the age limit for work requirements on able-bodied adults without dependents from age 49 to 54. The provision takes effect in 2025 and expire by 2030. Ramsey Alwin, President and CEO of the National Council on Aging (NCOA), on the passage of the Fiscal Responsibility Act in the U.S. House of Representatives, stated, “Older adults already face ageism when seeking employment. Now, hundreds of thousands of older, low-income SNAP recipients also could lose access to food assistance. This is especially problematic for people who already have multiple chronic conditions, as it takes away a valuable source of food, and that could jeopardize their health and well-being.”
How Does This Affect the Older Americans Act and Why Does it Matter?
This legislation provides the framework for the appropriations process, where the House and Senate will decide how to allocate federal funds to non-defense discretionary programs, like the Older Americans Act (OAA) for Fiscal Year (FY) 2024, which begins on October 1, 2023. The agreement calls for increasing spending on defense and veterans’ care, while largely capping or cutting other nondefense discretionary spending; therefore, the proposed funding has the possibility to reduce access to community services under the Older Americans Act. Over the last decade, the aging network has seen overall decreases in funding due to inflation and lack of investment. This new decrease in funding means more chronically ill, low-income older adults could lose access to vital programs like home-delivered and congregate meals, caregiver programs, and more. “We must invest more—not less—in ensuring that all can age with dignity,” Ramsey Alwin proclaimed.
How You Can Help
We must urge Congress to honor their commitment to funding senior programs. Even with overall spending restrictions in place, there is still opportunity to advocate for increased funding for Older Americans Act services. Visit our website to send a letter to your legislator today!
Additional Resources
AARP Article: How the Debt Limit Bill Could Affect Older Americans
NCOA Article: Requiring Older Adults to Work for Food Benefits Will Increase Hunger
What is in the Debt Ceiling Package?
Further Questions You May Have About the Debt Ceiling
