Corporate America's Safety Net: Report Reveals Millions at Top Firms Rely on Public Aid as Executive Pay Soars

A stark divide in the U.S. economy is laid bare in a new report, revealing that despite record corporate profits and executive pay, millions of workers at the nation's largest companies cannot make ends meet without government assistance.

The analysis, released Wednesday by the Institute for Policy Studies, scrutinizes 20 S&P 500 corporations with predominantly U.S. workforces and the lowest median wages. Dubbed the "Low-Wage 20," these firms collectively employ 6.7 million Americans. The findings suggest a systemic reliance on public safety nets, with median pay at 75% of these companies falling below the income threshold for a family of three to qualify for Medicaid. At 13 companies, pay was also too low to meet the Supplemental Nutrition Assistance Program (SNAP) eligibility for a similar family size.

"When corporations can externalize their employees' basic living costs onto taxpayers, it constitutes a form of corporate welfare," said Sarah Anderson, director of the Global Economy Project at IPS and the report's author. "With impending federal cuts to anti-poverty programs, the imperative for profitable corporations to pay a living wage is more urgent than ever."

The data provides a granular look at the crisis. In Nevada, which tracks Medicaid enrollment by employer, nearly half (48.4%) of Amazon workers and 29.3% of Walmart employees were enrolled in 2024. Across four states disclosing SNAP data, over 10,000 workers at each retail giant relied on food assistance.

This reliance is set against a backdrop of soaring corporate wealth. In 2024 alone, these 20 firms spent $32.5 billion on stock buybacks, led by Lowe's ($46.6bn) and Home Depot ($37.9bn). Meanwhile, inflation-adjusted median pay across the group fell 4.6% from 2019 to 2024, dropping to $29,087. The report calculates that redirecting buyback funds to wages could lift a million workers' pay to $59,600—enough to afford the average U.S. two-bedroom rent.

The CEO-to-worker pay gap remains a chasm. Average CEO compensation at these firms hit $18.9 million in 2024, a ratio of 899-to-1 compared to the median worker. At Starbucks, the ratio was an even starker 6,666-to-1, with CEO Brian Niccol earning $95.8 million while nearly half of eligible employees had zero balances in their 401(k) accounts.

Corporate responses highlight the contentious debate. An Amazon spokesperson called the focus on SNAP and Medicaid a "red herring," arguing eligibility is based on total household income, not individual wages, and advocating for a higher federal minimum wage. Walmart emphasized its "ladder of opportunity," while Starbucks highlighted its benefits package and employee retention rates. Home Depot and Lowe's did not respond to requests for comment.

The report also warns of a looming shock. Former President Donald Trump's proposed "One Big Beautiful Bill," with its associated budget cuts, could strip Medicaid from 7.5 million Americans and reduce SNAP benefits for 4 million more, potentially pulling the rug from under workers already on the edge.

Voices from the Public

Marcus Johnson, Economic Policy Analyst: "This isn't just about low wages; it's about a broken social contract. These findings show how public programs are effectively subsidizing corporate profit models that prioritize shareholder returns over employee well-being. It's unsustainable fiscal policy."

Linda Chen, Small Business Owner: "As someone who pays a living wage, it's infuriating to compete with giants who don't. They're using my tax dollars to fund their labor costs. This report should be a wake-up call for policymakers to level the playing field."

David Miller, Retail Associate: "[Emotionally] Wake-up call? We've been screaming about this for years! They post billions in buybacks while my coworkers are on food stamps. The CEO makes in an hour what I make in a year. It's not an economy; it's exploitation, plain and simple. And now they want to cut the benefits keeping us afloat? It's a disgrace."

Rebecca Torres, Sociology Professor: "This data quantifies a trend we've long observed: the 'financialization' of corporations. Wealth is being extracted upwards through buybacks and executive pay, leaving the workforce dependent on the very state these firms often lobby against. It represents a profound market failure."