OBBBA Funding Cuts

President Trump’s One, Big, Beautiful Bill Act (OBBBA), or H.R. 1, was enacted on July 4, 2025, and one year later, its effects are becoming increasingly apparent across the country.

The OBBBA is a major federal law that combines tax, spending, healthcare, immigration, energy, and education policy changes into a single package. The Act was passed by Congress as a budget reconciliation package, meaning it bypassed the Senate filibuster (which requires a supermajority of 60 votes) and only required a simple majority to pass.

The Act enacted 1.8 trillion dollars in spending cuts to offset the budget loss from the tax reductions, taking funding from Medicaid (1.02 trillion), SNAP benefits (186 billion), and federal student loan programs. As a result, the estimates say approximately 10.5 million people could lose access to Medicaid, and 4 million will lose SNAP benefits.

For New York, Governor Hochul announced a few months ago that it would be necessary to revise the Essential Plan due to OBBBA. New York’s Essential Plan is a health insurance program for working adults who don’t qualify for Medicaid but can’t afford healthcare services on their own, with different tiers that make it low-cost or free.

A recent newsletter update from Liz Krueger, the New York state senator representing District 28, detailed some of these changes. New Yorkers with incomes between $31,920-39,900 (200-250% of the federal poverty level) will no longer be eligible for the Essential Plan beginning in July of this year. This covers roughly over 400,000 New Yorkers in the state who will lose access.

Representatives in the New York State Senate and Assembly have reached out to Governor Hochul about potentially including assistance for those affected within the state budget.

People with any questions or those affected can reach out to their local representative’s office through email or call in order to receive assistance.