Guide

  • Eliminating Poverty and Economic Inequality

Impact of Federal Cuts to Social Safety Net in Louisiana

Families across Louisiana are working hard to stay afloat — paying more for everything from groceries to rent to health care. But the looming federal budget cuts will have an outsize effect on our state because federal funding is essential to supporting the basic needs of many Louisianians. Unfortunately, Louisiana is home to some of the highest rates of poverty, child hunger and housing insecurity: 38% of the state is low-income, 26% of children face hunger, and 28% of adults are at risk of eviction.

Federal funding is critically important to ensure everyone has access to necessities like health care, food and nutrition, housing, and public education. In FY 2022, Louisiana received approximately $20.4 billion in federal funds, or50.5% of the state’s revenue. Federal funds accounts for 68% of the state’s Medicaid budget and 12.2% of the state’s budget for public education. The federal government pays for 100% of the benefits paid and 50% of the administration of SNAP and 100% of housing assistance benefits.

Federal cuts would strip away health care coverage

Medicaid provides health care coverage for 1 in 3 Louisianians nationwide, allowing millions of people access to lifesaving prescriptions, complex medical treatments, preventive services, long-term care and other essential health care. Protecting people with low incomes from high medical costs reduces the risks of being pushed further into poverty and builds healthier communities. Medicaid is a popular, inexpensive and comprehensive program that keeps families from falling deeper into poverty. Louisiana is one of the only Deep South states to expand Medicaid.

Louisiana Medicaid facts

# of people enrolled in Medicaid1.6 million
% of people covered by Medicaid/CHIP32%
% of Medicaid paid for by the federal government68%
Children covered by Medicaid5 in 9
% of births covered by Medicaid61%
% of nonelderly Medicaid enrollees that are POC62%

Federal cuts would take food and nutrition away from families

The Supplemental Nutrition Assistance Program (SNAP) is our nation’s most effective tool in the fight against hunger, reaching more than 847,100 children, older people, veterans and working parents in Louisiana. The evidence is clear: SNAP reduces poverty and improves education, health and economic outcomes.

Louisiana SNAP facts

Average household receives$320/month
Total $ received$187 million
# of people helped by SNAP847,100
% of population receiving SNAP18%
SNAP-authorized retailers at risk of losing revenue4,400
Child hunger rate26.3%
% of SNAP participants who have children69%
% of families with older adults or disabled37%
% of people who do not have enough to eat16.2%

Federal cuts would dismantle public education

Proposals to eliminate and defund the Department of Education will have devastating impacts on children of all races and ethnicities. Gutting federal education funding will make it impossible to abide by formula and competitive grants specified in law, evaporate existing data collection processes, and allow schools to ignore anti-discrimination requirements.

Louisiana Education Facts

# public school students (FY22)718,145
# of public schools in the state (FY20-21)1,353
# of Title I eligible schools (FY20-21)1,191 (88%)
Fed $ in Title I funding (FY25)$397 million
% K-12 students receiving services under IDEA (FY 22-23)13%
Fed IDEA $ (FY25)$243 million
% education funds from the federal government (FY 21-22)19.5%
Fed $ per pupil received (FY 21-22)$3,300
$ LA spends per pupil in average daily attendance (FY 20-21)$14,428

Federal cuts will push more families deeper into housing insecurity

More than half of this country spends more than 30% of their income on housing. Federal rental assistance is another lifeline for 10 million people — including older people, people with disabilities, veterans and working families — helping them keep a roof over their heads.  Cutting these programs, as has been proposed in the past, would put millions at risk of losing their homes, and their futures.

Louisiana Housing Stats

# of people in LA who use federal rental assistance197,000
Federal rental assistance $ provided to LA in 2023$777 million
% of adults not current in rent or eviction likely28.1%
# people displaced from home because of disasters136,458

Louisiana will likely suffer a significant budget deficit with the hundreds of proposed cuts to Medicaid, SNAP, public education and other key programs. The sheer number of cuts required inevitably means people will lose health insurance, have more trouble paying for food on the table and need to make hard decisions about whether to seek care, buy food, or pay rent.