‘The Big, Beautiful Bill’ was signed into law two weeks ago 一 here’s what you need to know as a student.
On Friday, July 4, ‘The Big, Beautiful Bill’ was signed by President Donald Trump, after the Senate approved the bill on Tuesday in a 51-50 vote, and the House approved it in a 218-214 vote on Thursday.
The allegedly beautiful bill will implement budget cuts to healthcare and nutrition programs, like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), to direct funding into border control and national defense programs. Education-based aid, such as GradPLUS and Pell Grants, will also be significantly altered.
HEALTH
Medicaid is a prime target within this bill. The Congressional Budget Office (CBO) estimates the bill would add $3.4 trillion to federal deficits over the next decade, resulting in approximately 11.8 million Americans losing health coverage under Medicaid.
In response, supporters say that reducing Medicaid funding is necessary to improve healthcare. Nina Schaefer, Director of the Center for Health and Welfare Policy at the Heritage Foundation, ensures that the bill will make those eligible for Medicaid the only ones in the program and “weed out budget gimmicks used by the states to shift more costs to federal taxpayers.”
“The Medicaid program is over 60 years old and has been running on autopilot for far too long. These changes begin to bring much-needed oversight, transparency and accountability to the program,” commented Schaefer.
Within the bill, a new work requirement was implemented for Medicaid, calling for able-bodied adults without children to work 20 hours a week. Michael Cannon, Director of Health Policy Studies at the Cato Institute, says that “It is perfectly reasonable for taxpayers who are paying into the Medicaid program to insist that everyone in the program who can contribute, do so, by working.” Cannon acknowledges that this new requirement will divert people away from the program. Cannon also stated “Will the work requirements, as drafted, result in some people not enrolling? Yes, but a work requirement is a perfectly reasonable one.”
However, health policy expert Gerard Anderson at Johns Hopkins shows disdain for the budget cut. Anderson explains that the ”cuts would cause serious problems” to the states and their hospitals, as well as to physicians who provide the service and the patients themselves under Medicaid. To keep up with the current amount of coverage, each state would have to bring in more money by cutting enrollees with eligibility changes or offering fewer services.
Anderson considered Congress’s work requirement: “This might make sense in theory, but not in practice,” Anderson highlighted that people under Medicaid work low-wage jobs. Despite their employment, they are still unable to afford private health insurance or are ineligible for Medicaid. Furthermore, many Medicaid individuals live in rural areas where job opportunities aren’t readily available, so “In order to get a job, they would need to move to another community, likely in a more affluent area where they can’t afford to rent.”
In Washington, about 1,860,000 children and adults are on Medicaid. 16% of Washington enrollees live in a rural area, and 12% have three or more chronic conditions. 70% of Washington adults under Medicaid work一29% part-time and 41% full-time.
NUTRITION
SNAP benefits are also at risk of being taken away from certain individuals. The food assistance program, similarly, has two work requirements: the general work requirement and a work requirement for able-bodied adults without dependents (ABAWD). With the Big Beautiful Bill, those who cannot be exempt from the waivers are limited to three months of exemption within a three-year period.
In a statement, Washington Governor Bob Ferguson expressed some concerns: “Approximately 1 million Washingtonians use SNAP benefits every month. The reconciliation bill reduces SNAP benefits to the average household under the Thrifty Food Plan by about $56 per month, also decreasing the maximum allotment per household.” Governor Ferguson’s office noted that approximately 130,000 Washingtonians will need to meet new requirements in order to receive SNAP benefits, as the Bill altered age limits. This makes some parents ineligible for SNAP, and pressures youth in the foster care system to find work immediately after their eighteenth birthday.
Governor Ferguson’s office highlights that the SNAP program fosters economic activity in Washington. “According to the United States Department of Agriculture estimates, each dollar from the SNAP program produces more than $1.50 in economic activity at grocery stores, farmers markets and more.”
Governor Ferguson also stated that “This bill takes food from our must vulnerable Washingtonians to give tax breaks to the ultra-wealthy. This bill is only beautiful to billionaires.” With cuts to SNAP, the office suggests, there will be significant changes in Washington’s economy.
EDUCATION
The Pell Grant system is another aid program that is becoming more restrictive. Students will be required to increase their credit load to be eligible for a Pell Grant.
At community colleges, the minimum half-time requirement stands at 9 credits 一students enrolled less than half-time are no longer eligible for a grant. Full-time students will have to take 15 credits per semester, instead of 12. This may hinder students’ ability to balance extracurricular duties, like a job or dependent care.
According to Carrie Warick-Smith, Vice President of Public Policy for the Association of Community College Trustees (ACCT), the money supposedly saved from this budget cut is disproportionately small compared to the number of lives negatively affected by the new law. At Bellevue College, 51% of students are full-time, which leaves another 49% at risk of receiving little to no Pell Grant aid.
Conversely, the Workforce Pell, introduced in the bill, is a new, long-advocated option for financial aid. This grant seeks to award Workforce Pell Grants to students in eligible workforce programs that help students enter a higher-level occupation.
Most provisions will not take effect until January 1, 2026, or later. Despite this, it is important to prepare your finances for these changes and have a clear plan for the future.
