Hey everybody, I'm Rima Grays. Welcome back to Make Me Smart, where we make today make sense.

And I'm Kimberly Adams. Thanks everyone for joining us on Tuesday, June the 17th. And we are continuing our deep dive this week into the reconciliation package, also known as the one big, beautiful bill act.

It's bad every time.

We should count how many times you've said that in the show now.

I know it doesn't get easier.

And today we're going to break down questions about how the bill affects small businesses and taxes.

Yeah. So to get into that,

we have a listener question from Helen in Carmel, California, who wrote in to ask, the cuts to food benefits for the elderly and poor will not only impact the recipients, but also

the providers, which include grocery owners and also importantly

the farmers. Apparently, much of the fresh produce is purchased directly from farmers through

the USDA and other sources. Could you elaborate on these cuts and who will be directly

affected financially, like grocery stores, farmers, government staff, laid off, and recipients.

Yeah, this is a really good question because, yeah, the bill will impact small businesses in ways that might feel less obvious.

So just to back up, the reconciliation bill would reduce food assistance for many millions of people by cutting federal funding

for the Supplemental Nutrition Assistance Program, also known as SNAP.

And this move would force states to take on some of that cost.

So the House approved a plan that would force some states to take on up to 25% of the cost

of benefits, although the reworked Senate proposal scaled that back to

15%, but how much of the bill states would have to foot comes down to their error rates?

And then on top of that, the states would have to chip in more for administrative costs too.

And that's a big deal, because right now the federal government actually covers all of the

benefits and about half of the administrative costs. So this would shift a lot of new expenses

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