The “One Big Beautiful Bill” directs more funding to immigration enforcement while cutting investments in healthcare, clean energy, and social programs. Experts warn of long-term consequences.
The past few months have continued to bring uncertainty to U.S. politics. Amid Independence Day celebrations, President Donald Trump signed a new budget law known as the “One Big Beautiful Bill” or “OBBB,” which will shape the future management of federal funds across the country.
The sweeping legislation, passed by the U.S. House of Representatives on July 4, will directly impact the lives of American citizens—especially minorities such as immigrants and low-income communities.
Some of the changes introduced by the new law include increased funding for ICE (Immigration and Customs Enforcement) and CBP (Customs and Border Protection), budget cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), and new rules on solar energy tax credits that could raise electricity costs in households.
A Major Setback for Healthcare Coverage
Last Friday, American Community Media hosted the videoconference “Unpacking the New ‘One Big, Beautiful’ Law”, where several experts shared their views on the new legislation and analyzed the budgetary outlook in terms of healthcare, the environment, and the national deficit.
“This represents a giant setback in healthcare coverage,” said Larry Levitt, Executive Vice President for Health Policy at KFF. According to Levitt, 4.8 million people could lose their medical coverage simply for failing to meet reporting requirements on time.
He also noted that one of the Senate’s main concerns was the issue of tax restrictions, which could force states to cut payments to hospitals and other healthcare programs.
“One of the Senate’s major concerns was the impact this could have on rural hospitals.” Levitt pointed out that a large portion of the budget cuts target rural hospitals, which have thin margins and are much more vulnerable to closure. In response, a $50 billion Rural Health Fund has been added to support these hospitals—but it won’t offset the lasting damage caused by the cuts.
In response to concerns about immediate changes, Levitt said the effects will appear gradually. “These changes won’t happen overnight. Adjustments to Medicaid and the ACA will unfold progressively throughout this decade. We’ll be hearing a lot about this bill until the next elections in November.”
When asked whether Congress could undo the effects of the bill, Levitt acknowledged that reversal is possible. “A future Congress can delay the consequences of this law, but that would take years,” he stated.
He also addressed the impact on undocumented Hispanic immigrants and low-income populations. “There’s nothing in the bill that directly targets migrants, but it does include budget measures that could affect states using their own funds to assist immigrant populations. Healthcare coverage for those groups could be cut,” he said.
Economic Impact and the Deficit Outlook
This law will also have major effects on the U.S. financial landscape. According to Natasha Sarin, professor at Yale Law School, higher interest rates are expected—affecting households and the broader economy. “Mortgages, rent, and small business loans will become more expensive. Car and student loans will also rise due to this bill,” she said.
Sarin also shared another critical figure: by the end of the decade, the debt-to-GDP ratio will be nearly 135%, meaning the country’s debt will far exceed its total economic output. “This bill injects more money than all of the Biden administration’s previous legislation. It’s massive,” she noted.
She warned that the consequences of this package will unfold gradually over the years. Over the next three decades, the U.S. economy could face structural weakening. “This package will reduce GDP and overall economic output by making investments in the U.S. more expensive,” she warned.
Sarin also clarified two key points: first, despite Trump’s campaign promises, there will be no new taxes on tips or overtime pay. Secondly, she emphasized that this bill massively benefits the wealthy, while disproportionately harming low-income populations.
Environmental Setbacks and the Rollback of Clean Energy
Bill McKibben, writer, environmentalist, and founder of Third Act, warned that the environmental consequences of the bill are severe. “There will be significant tax cuts for batteries, solar energy, and wind power,” he said.
McKibben explained that many clean energy projects—some of which were promoted by the Biden administration—may now be canceled. “There’s growing discontent in the sector. Many businesses are shutting down due to the drop in solar farms and wind turbines.”
He described it as a paradox, comparing the U.S. to the global trend: “While other countries are moving toward clean energy, the United States is going in the opposite direction.”
He also noted that the bill will slash funding for agencies like NASA and the National Oceanic and Atmospheric Administration: “We’re shutting down satellites and disconnecting some of our most important sensors—and we won’t even realize the planet is heating up.”
Finally, McKibben stressed that the future will depend on how willing authorities are to engage the public and take action. “Climate change is happening fast, and we need to mobilize public opinion,” he concluded.