By Attorney Raven Beach
While the nation was collectively preparing to celebrate its independence, some life-altering legislation was occurring in Washington, D.C. On July 3, Congress passed The One Big Beautiful Bill Act, also known as the OBBB. The OBBB is a budget reconciliation law. Budget reconciliation is a special process used to fast-track matters related to the budget. It specifically impacts spending, revenue, and debt, and requires fewer votes than usual. The bill was signed into law by President Trump on July 6. And if you’re curious about how this new law could potentially impact you, keep reading.
Healthcare – The OBBB will reduce federal spending on Medicaid, making it more difficult to have adequate access to healthcare. The law will limit Medicaid eligibility, restrict how states can spend Medicaid funds, and may potentially impact providers such as rural hospitals and children’s hospitals. Unfortunately, those who are likely to be most impacted are children, immigrants, pregnant women, seniors, and low-income families. New requirements specify that an “able-bodied” working-age person must work, learn, or volunteer 20 hours per week to be eligible for Medicaid.
Student loans- Previously, if student loans were not affordable, borrowers could apply for an income-driven repayment plan. The OBBB eliminates this option. Now, borrowers will only have a standard repayment option or a repayment term based on their balance at enrollment and discretionary income. The OBBB also eliminates economic hardship and unemployment deferments. Pell grant access to college students will also be impacted. Students must be enrolled full-time or in 15 credit hours to qualify for Pell Grants.
Food – Finally, the OBBB will impact food security in a multitude of ways, including how much states will have to contribute. Consequently, there is increasing concern over the ability to continue the SNAP program altogether. A statement from an Alaskan food bank summarizes the grim outlook. “Food pantries are already at capacity. When SNAP is slashed, we will see longer lines, higher demand, and increased strain on volunteers and donated food supplies. We cannot fill the gap. No food bank can.”
Raven Perry-Beach, Esq.
107 Jefferson St.
Suite 14
Huntsville, AL 35801
(256) 799-0292
* Licensed in Alabama, Tennessee, Massachusetts, and DC
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