Funding Cuts in One Big Beautiful Bill Act Raise Concerns

News Summary

The U.S. House of Representatives has passed the controversial One Big Beautiful Bill Act, which could significantly reduce funding for essential programs like health care and food assistance. With millions relying on SNAP and Medicaid in New York, state officials and advocates are voicing worries about the ramifications of these cuts. Critics argue that the legislation favors wealthy individuals over vulnerable populations, while supporters claim it provides benefits to middle-class families. The bill now moves to the Senate amid heightened scrutiny and debate over its potential impacts.

New York—On May 23, 2025, the U.S. House of Representatives narrowly passed the “One Big Beautiful Bill Act” with a vote of 215-214, a decision that is stirring significant controversy in New York State. The implications of this legislation are poised to threaten funding for essential programs, primarily affecting health care and food assistance services. As public services become a focal point of contention, state officials and advocates are openly expressing their concerns about the repercussions for vulnerable populations.

The enacted bill will result in substantial cuts to the Supplemental Nutrition Assistance Program (SNAP), reducing funding by over $290 billion. This decision comes at a time when nearly 3 million New Yorkers depended on SNAP benefits—which amounted to $655.9 million in January 2025. The Alliance for a Hunger Free New York has warned that such extensive cuts may force the state government to assume a larger share of costs, with estimates indicating an increased burden of approximately $366 million to $1.828 billion by the year 2028.

Additionally, Governor Kathy Hochul highlighted that the legislation threatens to cut funding for affordable housing initiatives and clean energy projects. Hochul accused New York Republicans of favoring high-wealth individuals over the needs of their constituents. Her administration’s analysis revealed that approximately 1.5 million individuals would lose health insurance through the Essential Plan or Medicaid as a direct result of the bill. The Essential Plan funded by the Affordable Care Act, caters to 1.6 million low-income New Yorkers earning under 250% of the federal poverty line. Projections indicate that the budget could see a reduction of $7.6 billion (57%) from the Essential Plan, with an anticipated cost of $2.7 billion for the state to transition 506,000 individuals to state-funded Medicaid.

The impact on job security is another critical concern. Analysts have suggested that a $10 billion reduction in federal Medicaid funding could lead to the loss of over 78,000 health care jobs across New York, with an additional effect on about 215,000 jobs statewide. New York City alone could lose more than $5.4 billion in Medicaid funding, which may result in job losses for around 116,000 residents.

Supporters of the bill, primarily Republican lawmakers, claimed that the increase in the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for households earning under $500,000 would benefit middle-class families. Despite this claim, numerous advocacy groups, labor unions, and charitable organizations in New York have vehemently opposed the proposed cuts to social services, deeming them too harsh and detrimental to those who rely on these essential programs.

The bill also includes provisions aimed at modernizing air traffic control and enhancing border security, but it is projected to increase the national deficit by $3.8 trillion. Democratic leaders, including Senate Minority Leader Chuck Schumer, criticized the legislation, asserting it disproportionately harms low-income families and diminishes clean energy tax credits.

With the legislation having cleared the House, it now faces additional scrutiny in the Senate, where leaders are likely to seek amendments or revisions before it is potentially sent to the President for approval. The future of the One Big Beautiful Bill Act remains uncertain as debates surrounding its implications continue to heat up. Public welfare advocates, state officials, and the impacted communities will be watching closely as the bill progresses through the legislative process.

Deeper Dive: News & Info About This Topic

• News10: SALT vs SNAP
• AM New York: NY Democrats on Budget Bill
• The Hill: House Passes Bill
• CBS News: House Passes Trump Bill
• MSN: SNAP Changes Proposed
• Wikipedia: United States Budget
• Google Search: Supplemental Nutrition Assistance Program
• Google Scholar: Healthcare Funding New York
• Encyclopedia Britannica: Medicaid
• Google News: One Big Beautiful Bill