The One Big, Beautiful Bill Act is a comprehensive piece of legislation that aims to fulfill a range of campaign promises made by President Donald Trump. This megabill addresses critical issues, including tax reform and border security, and is currently under negotiation by House Republicans. As the final details of the legislation are being ironed out, it is essential to consider the potential implications for everyday Americans based on recent estimates. However, it is important to remember that the Senate is likely to make significant amendments to the bill, and the Congressional Budget Office (CBO) is still reviewing its contents.
One of the most concerning aspects of the bill is its impact on Medicaid coverage. According to a CBO analysis requested by House Democrats, more than 8 million recipients could potentially lose their Medicaid coverage. While Republicans assert that their focus is on able-bodied adults and undocumented immigrants, the changes may also adversely affect other beneficiaries. The bill proposes tightening Medicaid work requirements for individuals aged 19-64 without dependents, necessitating at least 80 hours of work per month. Additionally, states would be required to conduct eligibility redeterminations every six months for all recipients.
Moreover, the legislation would exclude undocumented migrants from Medicaid eligibility, which could result in approximately 1.4 million individuals losing access to state Medicaid programs. While the current text stipulates that these work requirements will not take effect until 2029, there are discussions among House Republican hardliners to move the implementation date up to 2026 or 2027. The proposed bill also includes increased copays for Medicaid recipients who earn above the federal poverty limit, further complicating access to essential healthcare services.
The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, would also face substantial cuts under the proposed legislation. The bill seeks to tighten eligibility requirements, impacting approximately 42 million low-income individuals who rely on the program to purchase groceries. Adults aged 55-64 and children would be subject to additional work requirements to qualify for SNAP benefits. Furthermore, the bill would shift some SNAP costs to individual states, which would be required to cover at least 5% of benefits starting in 2028. Overall, the estimated cuts to SNAP amount to around $230 billion over the next decade, which could indirectly affect school lunch programs and federal reimbursement payments for certain school districts.
One of the notable features of the One Big, Beautiful Bill Act is its provision to extend the Trump tax cuts from 2017. The legislation aims to make these tax cuts permanent, which some fiscal experts argue could add trillions to the deficit over the next decade. Importantly, the bill includes a significant tax break for workers receiving tips, exempting them from federal income taxes on tips earned up to $160,000 annually. This tax break is set to expire at the end of 2028.
Additionally, the bill introduces MAGA savings accounts for children, allowing parents to contribute up to $5,000 annually. To kickstart this initiative, a pilot program may provide an initial $1,000 contribution for these accounts.
The legislation proposes raising the SALT cap (State and Local Tax deduction) limit from $10,000 to $30,000 for joint filers earning less than $400,000 per year. This change is particularly supported by Republicans from states like New York and California, who argue that their constituents would benefit significantly. However, some hardliners caution that increasing the SALT cap could exacerbate the national deficit.
The bill also allocates nearly $50 billion for the construction of Trump’s border wall along the U.S.-Mexico border, alongside major changes to immigration policy. It includes funding for hiring new Border Patrol agents and customs officers, as well as bonuses for Immigration and Customs Enforcement officers. A notable provision is the imposition of a $1,000 fee on migrants seeking asylum, a first for the United States.
In summary, the One Big, Beautiful Bill Act has the potential to bring significant changes to various aspects of American life, particularly concerning healthcare, food assistance, taxes, and immigration policy. As the legislative process unfolds, it will be crucial for all stakeholders to stay informed about the evolving details and potential impacts of this comprehensive bill.
