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My take: We are called as Lutherans
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My take: We are called as Lutherans

The impacts of the federal spending law

For some Americans, it may be easy to think that the One Big Beautiful Bill Act, passed by Congress and signed into law by President Donald Trump in July, will not affect us. But ELCA members should all become aware of the ramifications for Lutheran agencies and institutions, no matter our political affiliation or where we live.

One such organization, Lutheran Services Carolinas (LSC), was formed in 2012 when Lutheran Services for the Aging and Lutheran Family Services combined, streamlining programs to cover a variety of needs. Among the multifaceted services LSC provides are adoption, foster care, adult day services, residential services for adults with intellectual or developmental disabilities, low- income senior apartments, independent living, assisted living, and nursing home care. Refugee resettlement services and disaster response are also part of LSC’s mission.

The federal spending law made widespread Medicaid cuts. Although the full impact of such reductions on LSC’s programs is not yet known, the organization is preparing for 10% cuts across all Medicaid programs. This includes their biggest and most Medicaid-dependent program: nursing homes, as well as homes for people with developmental disabilities. Such cuts could lead to decreased nursing, environmental services and dietary staff.

LSC must also limit its refugee resettlement programs, despite its nearly 50-year nonpartisan collaboration with the U.S. Office of Refugee Resettlement and the nonprofit Global Refuge. This impacts many families who have completed a thorough, yearslong vetting to resettle in the Carolinas. In 2024, the programs received nearly $20,000 in federal funding, which allowed them to serve over 3,300 refugees. Services included assistance in obtaining housing, employment, healthcare, school enrollment and English classes. But because of this year’s loss of federal funding, the programs laid off 72 workers.

In the area of disaster response, LSC did receive some good news this year. In July, three grants, totaling nearly $110,000, are assisting those still affected by Hurricane Helene, which ravaged the mountain areas of the Carolinas in Sept. 2024. The funding comes from the One SC Fund, Lutheran World Relief and Lowe’s. But disasters are expensive, and rebuilding takes years. Disaster-response programs can no longer rely on the Federal Emergency Management Agency to have a strong presence in disaster-recovery efforts. The agency has withdrawn previously promised aid and significantly reduced its workforce.

How to respond

What are we as Lutherans called to do to ease the impact of the federal spending law?

First, we must educate ourselves about our own communities. Who are our most vulnerable residents? What are their needs? Are there elderly members of our congregations needing to move into nursing facilities? Have friends had their jobs eliminated? Have cuts to Medicaid and the Supplemental Nutrition Assistance Program pinched our neighbors?

Next, we must consider actions that we, as a church, can take immediately. Will we remove any limits of access to food pantries and run frequent food drives among our congregants to keep shelves stocked? Will we choose to expand our overnight sheltering of the unhoused during winter months? Can we form a team of volunteers to assist refugees in applying for jobs and navigating the city bus system?

As individuals, we must inform ourselves about municipal, state or national elections. We can contact our representatives expressing concern and making suggestions for legislation more in keeping with our Lutheran beliefs. Will any of us run for office, touting a platform of our shared humanity—Democrats and Republicans, citizens and undocumented, disabled and non-disabled?

Both as a church and as individuals, we can open our pocketbooks to Lutheran-supported agencies who serve our communities. Across the country, there are many Lutheran organizations similar to LSC.

Finally, we must all pray with intention for everyone affected by the current spending law. When possible, we should personalize our prayers. It’s easy to lift up the names of fellow congregants, but what about hungry people who knock on our church doors? The unhoused who seek comfort in our shelters? The migrant workers we know? Let us call them by name, just as Christ calls us his own. Do we hear him calling us now?