And y'all gotta know why I made the cut, I'm Puerto Rican
“Made the cut” is a double entendre/has a double meaning:
1) Some people, stereotypically, see Puerto Ricans as thugs and with their weapon of choice being knives and sharp objects in general. Another stereotype is that they all sell coke, which fits in with the cutting too.
2) Made the cut also means he made it to the group/achieved something.
“made the cut” also means that he is the only non-black dude in slaughterhouse and that he made the group because of “affirmative action”
it could also be in reference to the eating line with him suggesting that he eats a lot
Puerto Rican cigars are also world famous with long cut tobacco in them.
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