One Big Beautiful Bill Act would cut taxes, but reduce SNAP, Medicaid coverage
Congress has made significant moves toward passing a legislative package that would serve as a major step forward on President Donald Trump’s agenda, but not everyone is happy with the cuts being made.
The package in question, dubbed the One Big Beautiful Bill Act, features tax cuts for both individuals and businesses, while also increasing work requirements for both Medicaid and recipients of the Supplemental Nutrition Assistance Program, or SNAP. It passed the House of Representatives by a razor-thin margin of 215-214 on Thursday, May 22.
For tax cuts, the package would temporarily raise the standard deduction by $1,000 for individuals, bringing it to $16,000, and $2,000 for joint filers, bringing it to $32,000. The deduction reduces the amount of income that is actually subject to income tax.
The package would also fulfill some of the president’s campaign promises, such as no tax on tips, overtime or interest on some auto loans. These breaks are set to expire at the end of 2028.
Meanwhile, Medicaid, also known as Medical Assistance in Pennsylvania, would see a $700 billion reduction in spending as new “community engagement requirements” would go into effect Dec. 31, 2026. To be eligible for Medicaid, able-bodied adults without dependents would need at least 80 hours per month of work, education or service. People would also need to verify their eligibility twice a year instead of once.
As for SNAP, the package would reduce spending by an estimated $267 billion over 10 years as work requirements would increase and states would bear more of the program’s cost.
If passed, the package would push the age of able-bodied adults without dependents who must fulfill work requirements from 54 to 64. Some parents are currently exempt from the work requirements while their children are under 18, but the package would limit exemptions to parents with children under the age of 7.
The financial burden on states would also dramatically increase. Currently, states contribute nothing toward benefit costs and half of administrative costs for the program. If passed, beginning in fiscal year 2028, states would take on 75% of administrative costs and anywhere from 5 to 25% of benefit costs.
The package also includes numerous other changes, such as increases to defense and border security spending; the prohibition of Medicaid funds going to Planned Parenthood; and an increase of drilling and mining on public lands.
After the package’s introduction, the Greater Pittsburgh Community Food Bank, which serves Butler County, published a release urging lawmakers to reject these proposed cuts.
After the bill passed through the House, Pennsylvania Gov. Josh Shapiro posted on X claiming the package would shift $1 billion in food assistance costs into the state budget, and would cause the loss of at least 140,000 Pennsylvanians’ access to food assistance and over 300,000 Pennsylvanians’ Medicaid coverage.
Rep. Mike Kelly, R-16th, who is chairman of the House’s Ways and Means Subcommittee on Tax, however, praised the bill.
“This legislation will strengthen working families and small businesses in Pennsylvania and across the United States,“ he said in a May 22 news release. ”Parents will benefit from an expanded Child Tax Credit. We have delivered President Trump's promise of no tax on tips, overtime, auto loan interest, and tax relief for seniors. And, we are putting more money in the pockets of millions of Americans.
“We are building on the success of the 2017 Tax Cuts and Jobs Act and we are making sure these pro-growth tax policies will benefit generations to come.”
While the package is currently undergoing review, it is expected to hit the Senate floor in coming weeks.
The Associated Press contributed to this report.
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