The proposed One Big Beautiful Bill Act by Republicans is stirring controversy, particularly for its potential impacts on low-income families. While the bill aims to extend tax cuts from 2017, it also proposes significant reductions to social safety net programs, prompting concerns about the repercussions for vulnerable populations.
According to a report by the Congressional Budget Office (CBO), the proposed changes would disproportionately affect the nation’s poorest households, potentially cutting their resources by an average of $1,600 annually. In contrast, wealthier families could see an increase of about $12,000 per year.
Healthcare for Children
At the forefront of these changes are cuts that would impact healthcare access for children. Currently, over 37 million children are covered by Medicaid or the Children’s Health Insurance Program (CHIP), which provide essential healthcare services from prenatal care through young adulthood. Republicans propose introducing work requirements for Medicaid and allowing states to impose waiting periods and lockouts for CHIP, which could complicate access for eligible families.
While these changes aim to improve household earnings, experts like Joan Alker from Georgetown University’s Center for Children and Families argue that increased administrative hurdles could make it more challenging for families to maintain their benefits. Meanwhile, the CBO estimates suggest the House proposal could lead to a reduction of approximately $800 billion in federal Medicaid spending over the next decade, potentially affecting 1 in 5 children.
Food Assistance Programs
The bill also targets the Supplemental Nutrition Assistance Program (SNAP), which supports over 15 million children with food assistance. Proposed changes would implement stricter work requirements and shift funding responsibilities to states, potentially cutting more than $290 billion from SNAP over a decade. Critics, including Katie Bergh from the Center on Budget and Policy Priorities, warn that these cuts could eliminate or reduce food assistance for millions of children.
Tax Benefits for Families
On the tax front, the bill proposes updates that could expand access to certain tax credits, such as the Child and Dependent Care tax credit. However, changes to the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) face criticism for adding administrative burdens that could limit access for low-income families.
Current CTC regulations require children to be U.S. citizens or legal permanent residents. The House bill could disqualify over 4.5 million children by requiring both parents to have a Social Security Number. In contrast, the Senate version would only require one parent to have a Social Security Number, though both proposals would continue limiting the full credit to lower-income families.
Despite the proposed increase in CTC amounts, experts like Megan Curran of Columbia University argue that the changes disproportionately benefit wealthier households, leaving a significant portion of children unable to claim the full credit.
While investing in children has been shown to yield significant returns for society, the proposed bill appears to shift resources away from those who might benefit most, prompting debate over the best path forward for supporting American families.
