Because of the vast and devastating nature of H.R. 1, also known as the “One Big Beautiful Bill, we are just beginning to assess its impacts on People Serving People and on our families. We do know that the programs and services that prevent homelessness and stabilize families—such as access to affordable and sufficient food, medical care, childcare, and housing—are likely to be negatively impacted or eliminated. This article is part one in our ongoing series, “Punishing Poverty.”
The Devastating Impacts of H.R. 1, Part One
On July 4, 2025, President Trump signed HR 1, also known as the “One Big Beautiful Bill Act (OBBBA),” into law. In short, this bill is devastating for all families—yours as well as those we serve— making it even harder for families to secure their basic needs for food, housing, medical care, childcare, and employment, which will only increase the number of parents and children experiencing housing instability. We anticipate that, as a result, the federal government—once an invaluable source for preventing homelessness— will now be the leading source of causation.
A few examples of changes that will negatively impact all people, including our families, include:
- In addition to the ever-increasing cost of food and groceries, the bill adds more barriers and increases restrictions on eligibility to receive Supplemental Nutrition Assistance Program (SNAP) benefits.
- Benefits are now limited to three months every three years for parents with children over 14, unless they work at least 20 hours per month and can adhere to the onerous documentation processes and procedures.
- Families who are refugees, asylees, and/or trafficking survivors are entirely prohibited from receiving SNAP benefits.
- Beginning in 2027, the federal government will reduce its share of SNAP administrative costs from 50% to 25%. This will require states to cover the remaining 75% and will strain state budgets. In Minnesota, the state will share this cost with counties.
We are devastated that, rather than being on a clear trajectory to ending family homelessness through housing solutions, we are now on a punitive pathway that creates barriers that make it more and more difficult for families to achieve the lives of dignity they deserve.
What does this mean for People Serving People?
In short, the federal government’s legislation is cruel and punishes poverty. Rather than caring for our neighbors—those who have the least—it takes from them and shifts the expense of caring for each other to states, counties, and private organizations and individuals. The legislation will make it even harder for families to thrive, making it more likely that increasing numbers will experience homelessness, further strain the Hennepin County Shelter System, and increase the demand for People Serving People’s services, which is already operating at 200% capacity.
Join the movement to care for our neighbors
In Hennepin County and Minnesota more broadly, we are committed to caring for one another and our families. If you share this commitment, please give and get involved, sharing your time, talents, and treasure with those who need it most: our families.
Our sources
If you feel as strongly as we do that it is a moral imperative to care for each other, we encourage you to read more at our sources for this article.
Booth, Rachel Cohen. “Trump Is on Track to Ditch a Time-Tested Approach to Combating Homelessness.” Vox, 7 Mar. 2025.
Gina Plata-Nino, JD. “The Far-Reaching Harmful Impacts of the Reconciliation Bill – on Families, Older Adults, Immigrants, and State Budgets.” Food Research & Action Center, 11 July 2025.
Konish, Lorie. “Trump’s ‘big Beautiful Bill’ Cuts Food Stamps for Millions – the Average Family May Lose $146 per Month, Report Finds.” CNBC, CNBC, 10 July 2025.
