NCNW ADVOCACY & POLICY BRIEF

Overview:The House passed the budget bill (also known as “The Big Beautiful Bill” to some and “One Big Ugly Bill” to others) last night in a 215-214 vote along party lines in the dark of the night while many were sleeping. This bill includes a variety of cuts to various services and programs that support those dependent on the services for our communities. However, the result of the cuts gives a massive tax break to the wealthy which equals $3.8 trillion while the poorest would receive about $1 trillion in cuts. Households with the lowest incomes will make off worse while the richest get richer.  The Congressional Budget Office (CBO), the federal agency (non-partisan) that provides budget and economic information to Congress, estimates that 15 million people would lose health coverage and millions will lose food assistance or have their food assistance cut, including 2 million or more children.

The specifics of the bill are as follows:

• $500 billion cut to Medicare
• $700 billion cut to Medicaid
• The health care cuts take away Medicaid and affordable marketplace coverage from people who are eligible – many would have healthcare coverage dropped while driving up health cost for many.
• Work requirements for Medicaid specifically require childless adults without disabilities to work 80 hours a month. This would begin at the end of 2026.
• For SNAP (Supplemental Nutrition Assistance Program) states will be required to increase the amount they contribute to the program. Work requirements will be applied for able bodied applicants who do not have children. Additionally, states who already are faced with federal funding cuts could decide to end their SNAP programs entirely.
• Education will be less attainable for many. While the cost for student loans will increase, it would reduce the level of Pell Grants for college students. The bill allows for education funds – $5 billion a year- to incentivize private schools over public schools.
• The debt ceiling will be raised by $4 trillion leaving the average American holding the bag for future debt while giving the wealthy a tax cut.
• No taxes on tips on or overtime earned between 2026 and 2028. On paper, it is good but will make businesses think that there will be no need to raise wages to a livable rate. Also, there is an allowance for a deduction of interest on car loans for US made cars only, while not everyone buys and owns a U.S. made car.
• This will be an increase in the Child Tax Credit $2,500 until 2028, but only for people with social security numbers. Essentially, the Child Tax Credit will be taken away from millions of U.S. Citizen children in immigrant families.  After that it would drop to $2,000 and grow with inflation. It would also allow for a $4,000 deduction for people over the age of 65 but phase out individuals with higher incomes.