Here’s How the “One Big Beautiful Bill” Could Impact Indiana
Dear neighbor,
The GOP’s mega bill is currently moving through the Capitol after passing in the U.S. House of Representatives with a narrow vote of 215 to 214. Called the “One Big Beautiful Bill,” the 1,000-page bill contains massive changes to domestic policy.
Although this is national policy, changes in this bill will affect our state. Indiana is the 3rd most reliant state on federal funding, after Louisiana and Mississippi. Since we rely heavily on federal funding, programs Hoosiers need may be reduced. Here are some impacts the One Big Beautiful Bill could have on our state:
Medicaid:
In Indiana, over 2 million Hoosiers rely on Medicaid, and roughly 39% of enrollees are children. The megabill would reduce federal funding for Medicaid by $700 billion, resulting in a cut of $15 billion to Indiana’s Medicaid program. The bill also imposes work requirements, even though 72% of Hoosiers on Medicaid are working. Eligibility checks would shift to twice a year, and additional income and residency verifications would be required. By adding more paperwork and administrative red tape, eligible Hoosiers could lose their coverage. We should take measures to limit waste and fraud in government services, but these changes put Hoosiers at risk. If passed, the Center for American Progress estimates that 250,000 Hoosiers could lose their Medicaid coverage. Specifically in Northwest Indiana, 29,000 people could lose access to Medicaid by 2034.
You can read about Medicaid cuts at this link. Also, check out this Indiana Medicaid fact sheet.
SNAP:
The Supplement Nutrition Assistance Program (SNAP) serves 600,000 Hoosiers. The megabill would cut the program by $300 billion and increase the amount that states need to contribute. According to the Center for American Progress, the SNAP cuts could kick 151,000 off the program. In Northwest Indiana, that would be that 26,000 people could lose access to SNAP. Indiana would need an additional estimated $356 million to cover the program. The president and CEO of the Gleaners Food Bank of Indiana warned that these changes would create “a needless self-inflicted humanitarian and economic disaster for Indiana.”
You can read more about the SNAP cuts here.
Student Loans:
Close to $330 billion would be cut from the federal student loan system, reducing the amount available to students. Existing repayment plans would be scrapped, including plans based on income and household size. Borrowers would only have two repayment options— a standard plan and the “Repayment Assistance Plan.” Economists worry that limiting repayment options will make it harder for students to pursue graduate degrees, especially those who wish to attend medical or law school. Changes would be made to the Pell Grant program for low-income students, increasing the definition of full-time college attendance to 30 credit hours per year. Pell Grant students must be enrolled at least half-time, or 6 credit hours per semester, to qualify. These changes could ultimately result in less aid for students or fewer students going to college due to financial strain.
You can read more about the student loan changes here.
Taxes:
Extends the 2017 Tax Cuts and Jobs Act (TCJA), mostly providing tax breaks to the richest Americans and large corporations. The top 0.1% will save close to $400,000 while the average Hoosier making $51K to $91K a year will save between $845. Individuals with the lowest income could actually pay more in taxes. There are some good parts of the bill’s tax policy, including no tax on tips, no tax on overtime, and an increase in the child dependent tax credit. However, the Big Beautiful Bill would increase our national debt by $4 trillion. You can read the analysis by the Penn Wharton Budget Model here.
The U.S. Senate has begun discussing the “One Big Beautiful Bill” to meet the self-imposed deadline of July 4. If you have questions or concerns, please get in touch with my office at h1@iga.in.gov. I’m happy to help you get in contact with federal agencies or Indiana’s members of the U.S. Congress.