House Republicans are using their August recess to promote the One Big Beautiful Bill Act, but a new report from the Congressional Budget Office (CBO) suggests things are far bleaker than they say.
The report projects that the poorest 10% of Americans will lose about $1,200 a year under the law, while the wealthiest 10% will gain roughly $13,600 a year.
In other words, the law is a massive transfer of wealth from the poor to the rich.
“Republicans are adding trillions to the debt, raising costs on struggling families, and kicking millions off their health care—all to enrich billionaires,” Rep. Brendan Boyle (D-PA) wrote on X. “It’s Robin Hood in reverse.”
The loss of wealth for poorer Americans is primarily driven by cuts to Medicaid, which 89 million people depend on for health insurance, and SNAP, which provides food assistance to nearly 42 million people.
The CBO previously estimated that 13.7 million people would lose health insurance because of the law’s cuts to Medicaid and changes to Obamacare subsidies. The new report digs into the effect of SNAP cuts, which are expected to leave 2.4 million people ineligible for the program.
“The recently passed budget reconciliation bill has shifted additional SNAP costs onto states, forcing agencies to scramble to implement complex and harmful provisions,” Crystal FitzSimons, president of the Food Research & Action Center, said in a statement. “States cannot afford the red tape, costly system upgrades, and staff training that these restrictions require.”
The gains for wealthy Americans are largely the result of tax cuts that are funded through cuts to Medicaid, SNAP, and other federal programs. While most Americans will receive some form of a tax cut under the law, the vast majority of cuts—66%—will benefit households earning more than $500,000 a year.
Polling suggests that the law is largely out of step with what most Americans want. A KFF poll found that 64% of voters have an unfavorable view of it. A Pew poll from March found that 55% of Americans support raising taxes for the wealthy, not cutting them.
The One Big Beautiful Bill Act passed the House and Senate with only Republican votes. It was signed into law by President Donald Trump on July 4.
Reprinted with permission from American Journal News.
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