A Fundamental Reshaping of the U.S. Social Safety Net
The "One Big Beautiful Bill Act" (OBBBA) proposes to make the 2017 tax cuts permanent by financing them with unprecedented cuts to Medicaid and SNAP. This interactive analysis explores the bill's core provisions and its profound impact on low-income households and communities.
Projected to become uninsured due to Medicaid changes
In projected cuts to SNAP food assistance over 10 years
Average annual tax cut for the highest earners
How Benefits and Taxes Would Change
The bill introduces sweeping changes to America's primary health, nutrition, and tax systems. Select a category below to see a direct comparison of the proposed changes against current law.
Current Law
- ✓Work requirements for Medicaid eligibility are **prohibited**.
- ✓Eligibility is typically redetermined **every 12 months**.
- ✓States can use waivers to create exemptions based on local conditions.
- ✓Federal government provides an enhanced 90% funding match for the ACA expansion population.
H.R. 1 Proposal
- ✗**Mandatory 80 hours/month** work/school/service for adults 19-64 (and some parents).
- ✗Redetermination frequency increased to **at least every 6 months**.
- ✗States are **prohibited** from using waivers to create additional exemptions for the work mandate.
- ✗Match rate is reduced for states covering certain immigrants, with proposals to **phase out the enhanced match entirely**.
Who Is Affected? The Distributional Impact
The bill is not neutral; it functions as a massive fiscal transfer. The following chart, based on data from the Yale Budget Lab, shows the average net change in annual resources for households across the income spectrum, combining tax changes and benefit cuts.
A Startling Long-Term Projection
An analysis by the Joint Committee on Taxation (JCT) projects that by 2031, the bottom 20% of earners would face a staggering 468.2% tax increase as cash-equivalent benefits from Medicaid and SNAP are lost, while all other income groups receive a net tax cut.
Household Impact Simulator
To understand the real-world consequences, let's look at a case study of "Maria," a single mother in Texas with two children, ages 8 and 15, working 30 hours a week. See how her family's financial situation changes under H.R. 1.
Maria's Annual Finances
This is her family's financial picture under current law.
Gross Income
$18,720
SNAP Benefits
$4,800
Tax Refund (EITC+CTC)
$8,500
Total Annual Resources
$32,020
Official Sources & Useful Links
For further research, here are the official sources and key analytical reports referenced in this analysis.
