FPI Briefing on the Federal Budget Reconciliation Bill
July 10, 2025 |
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Last Friday, July 4, 2925, President Trump signed a sprawling piece of legislation —referred to as the “One Big Beautiful Bill Act” (“OBBBA”) — that enacts one of the most regressive set of tax and spending cuts seen in United States history. In addition to redistributing towards the wealthy and cutting programs that support the health and wellbeing of low- and middle-income families, the bill adds significantly to the federal debt and reverses important progress that has been made towards stemming climate change.
The OBBBA reduces tax revenue by $4.5 trillion over the next 10 years and cuts spending by $1.5 trillion. Combined with added spending on programs like the ramping up of the budget for Immigration and Customs Enforcement (ICE), the OBBBA adds $3.3 trillion to the federal deficit over the next 10 years.
The OBBBA spending cuts are concentrated in Medicaid and food stamps (SNAP), with devastating effects for New Yorkers. The bill will cut federal funding to the New York State budget by approximately $10 billion annually and kick 1.5 million New Yorkers off their health insurance, more than doubling the statewide uninsured population. On top of the direct fiscal costs to New York State, the OBBBA will cut an additional $13 billion in funding to New York’s healthcare system. Cuts to healthcare funding will hit New York’s many financially distressed hospitals, forcing closures across the state. FPI previously estimated that cuts to healthcare spending will eliminate 215,000 jobs statewide, raising the unemployment rate by 50 percent.
The OBBBA will also reduce federal funding for food stamps (SNAP) – a program that keeps 3 million low-income New Yorkers from going hungry – but it requires state governments to fill in these spending gaps, which would cost New York State up to $1.4 billion annually.
Ultimately, New York’s elected leaders will be forced to make hard choices between new tax measures to fund these obligations and spending cuts to the State’s most important safety-net programs. To protect New Yorkers from the draconian cuts coming from Washington, New York lawmakers must convene a special session and establish new revenue measures to pay for funding gaps.
Impact of Federal Cuts to New York
FPI Briefing on the Federal Budget Reconciliation Bill
July 10, 2025 |
—
Last Friday, July 4, 2925, President Trump signed a sprawling piece of legislation —referred to as the “One Big Beautiful Bill Act” (“OBBBA”) — that enacts one of the most regressive set of tax and spending cuts seen in United States history. In addition to redistributing towards the wealthy and cutting programs that support the health and wellbeing of low- and middle-income families, the bill adds significantly to the federal debt and reverses important progress that has been made towards stemming climate change.
The OBBBA reduces tax revenue by $4.5 trillion over the next 10 years and cuts spending by $1.5 trillion. Combined with added spending on programs like the ramping up of the budget for Immigration and Customs Enforcement (ICE), the OBBBA adds $3.3 trillion to the federal deficit over the next 10 years.
The OBBBA spending cuts are concentrated in Medicaid and food stamps (SNAP), with devastating effects for New Yorkers. The bill will cut federal funding to the New York State budget by approximately $10 billion annually and kick 1.5 million New Yorkers off their health insurance, more than doubling the statewide uninsured population. On top of the direct fiscal costs to New York State, the OBBBA will cut an additional $13 billion in funding to New York’s healthcare system. Cuts to healthcare funding will hit New York’s many financially distressed hospitals, forcing closures across the state. FPI previously estimated that cuts to healthcare spending will eliminate 215,000 jobs statewide, raising the unemployment rate by 50 percent.
The OBBBA will also reduce federal funding for food stamps (SNAP) – a program that keeps 3 million low-income New Yorkers from going hungry – but it requires state governments to fill in these spending gaps, which would cost New York State up to $1.4 billion annually.
Ultimately, New York’s elected leaders will be forced to make hard choices between new tax measures to fund these obligations and spending cuts to the State’s most important safety-net programs. To protect New Yorkers from the draconian cuts coming from Washington, New York lawmakers must convene a special session and establish new revenue measures to pay for funding gaps.
Impact of Federal Cuts to New York