Summary

Last week, we unpacked how the House GOP's budget bill could gut Medicaid. This week, we're zooming out, because Medicaid isn't the only program on the chopping block. The so-called One Big Beautiful Bill is a sprawling, 1,100-page package that pairs massive tax cuts with deep reductions to food assistance, education, clean energy, and more. The result? A proposed $3.8 trillion increase in the national debt over the next decade, according to the Joint Committee on Taxation.

While the bills' architects promise savings and growth, the fine print tells a different story, especially for Pennsylvanians.

SNAP Cuts:

The bill proposes over $230 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP), including stricter work requirements and penalties for states with high error rates. In Pennsylvania, where 1 in 5 children already face food insecurity, these changes could be devastating. Allegheny County, for example, saw childhood food insecurity rise to 18.2% from 16.6% in the previous year.

Education:

The bill increases eligibility requirements for Pell Grants, introduces Workforce Pell Grants for trade school students, ends subsidized federal loans for undergrads, and limits regulatory authority over for-profit colleges. These changes could reduce college access for more than 150,000 low-income students in Pennsylvania, who currently rely on Pell Grants.

Clean Energy:

The bill reduces subsidies for clean energy, eliminating key tax incentives for renewable projects. This rollback could stall clean energy growth and cost jobs in Pennsylvania's growing green economy, as well as impact current subsidies and tax incentives for residents and businesses. A rollback of federal incentives could lead to higher energy costs, fewer jobs in the clean energy sector, and a slowdown in the adoption of clean energy technologies like heat pumps and solar.

Tax Cuts:

President Trump’s initial promise was no tax on overtime or tips, but the legislation only expands 2017 tax cuts to include new deductions for tips and overtime, and increases the standard deduction. While these changes offer modest relief for middle-income earners, most benefits go to high-income households.

Additionally, the bill proposes raising the SALT deduction cap from $10,000 to $40,000 for households earning up to $500,000, with a gradual phaseout for higher incomes, while also eliminating the pass-through entity workaround used by many small business owners. In Pennsylvania, that means moderate relief for residents in high-tax areas like Philadelphia and its surrounding suburbs but limited impact elsewhere. It has the potential to cause a tax hike for professionals who rely on the PTET (pass-through entity tax) structure.

Debt Outlook:

Despite promises of fiscal responsibility, the bill would increase the deficit by nearly $3 trillion over ten years.

The Response

As Congress deliberates over the expansive "One Big Beautiful Bill," which proposes significant

With reductions in federal spending, Pennsylvania's elected officials are voicing strong opposition, particularly concerning cuts to programs like SNAP, education, and clean energy initiatives.

Senator John Fetterman (D-PA):

“I will never support any bill that strips Medicaid, Medicare, or SNAP benefits from Americans to bankroll tax cuts for billionaires. Pennsylvania deserves better than this, and I'll keep fighting for a government that serves the people, not special interests.” Source

Governor Josh Shapiro:

Governor Shapiro has expressed concerns about the budget's implications for the state's finances and residents' well-being, warning that the proposed cuts could result in billions of dollars in lost federal aid.

State Representative Arvind Venkat (D-PA):

“Without Medicaid, hospitals will see more emergency room visits from patients who can't afford the cost of care. That is the future that we're looking at if these cuts go through.” Source

Rep. Lloyd Smucker (R-PA): Initially voted in favor of the bill during the House Budget Committee markup, but later changed his vote to “no” to allow for procedural reconsideration. Smucker clarified that his switch was a strategic move to keep the bill alive for further discussion.

The state government is bracing for the impacts of the Congressional bill. Governor Shapiro's proposed $51.5 billion state budget includes increased investments to offset potential federal cuts. HB 157 supports rural healthcare with grants to medical professionals in underserved areas. Pennsylvania's leaders are taking steps to respond to the proposed federal budget, focusing on protecting essential services and vulnerable communities.

Final Thoughts

The One Big Beautiful Bill promises sweeping change, but the fine print reveals a package that could deepen inequality and undercut essential services. Pennsylvania, already stretched, could face higher poverty, fewer opportunities, and less resilience if these cuts become law.

While the stakes are high, so is the opportunity for action. Pennsylvania has weathered difficult federal shifts before, and this moment is no different. With strong leadership, public awareness, and strategic investment, we can continue protecting what matters most: our people.