On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act (BBB), a sweeping piece of federal legislation that has set off a firestorm of debate from Washington, D.C. to the streets of Brownsville, Texas, and the statehouse corridors of Michigan. Heralded by its supporters as a historic economic boon and slammed by detractors as a betrayal of working families, the BBB is now reshaping the fiscal and political landscape across the country.
Just days after the law’s signing, U.S. Rep. Vicente Gonzalez, a Democrat representing Brownsville, Texas, stood before a crowd of union members and local press to voice his deep concerns. According to myRGV.com, Gonzalez minced no words, calling the legislation “nothing more than one big betrayal.” He warned, “Instead of uplifting our community, it will only make our seniors, students, and veterans sicker, hungrier and poorer. And for what? To line the pockets of the ultra-rich?”
The numbers he cited were stark. Drawing from a Tax Policy Center analysis, Gonzalez highlighted that households earning between $460,000 and $1.1 million annually would see an average tax cut of $21,000, while those making less than $35,000 would receive about $150. “Does that seem fair to you?” he asked, as reported by myRGV.com.
Yet, the White House has painted a very different picture. According to The Center Square, the administration is touting the BBB as “the largest, most consequential tax cut on the middle class ever.” White House Deputy Press Secretary Anna Kelly declared, “Between lower inflation, massive investments, and historic tax cuts, all Americans are reaping the benefits of the Trump Economy – and the Golden Age has just begun.”
The core of the BBB’s tax policy is a blend of permanent and temporary cuts. The law locks in several provisions from the 2017 Tax Cuts and Jobs Act, such as reduced tax rates, a $15,000 standard deduction, a $2,000 Child Tax Credit, a 20% Qualified Business Income deduction for small businesses, and a $750,000 cap on the home mortgage interest deduction. Three major business tax credits also become permanent: full reimbursement for new capital investments, expanded deductions for corporate interest on debt, and immediate write-offs for research costs.
Temporary provisions, set to expire in 2030, include a quadrupling of the state and local tax (SALT) deduction cap, a $6,000 deduction for seniors, and new deductions for tips and overtime pay. The Tax Foundation, a nonpartisan think tank, estimates that in 2026, taxpayers nationwide will receive an average tax cut of $3,752, though there is considerable variation by state. Wyoming, Washington, and Massachusetts residents are expected to see the biggest average tax cuts (around $5,100), while those in West Virginia and Mississippi will see the smallest (about $2,400).
In Michigan, the impact is particularly notable. As detailed in a recent update from the Detroit Regional Chamber, Michigan taxpayers are projected to receive an average federal tax cut of $3,151 in 2026. However, as some of the temporary provisions expire, that figure is expected to fall to $2,342 by 2030 before rising again to $3,033 by 2035 due to inflation. The law’s changes are the most significant since the 2017 tax overhaul, introducing new deductions for tipped and overtime income, an expanded child tax credit, and generous business expensing options.
But the BBB’s effects go far beyond tax policy. According to Rep. Gonzalez and echoed by other critics, the legislation slashes more than $1 trillion from Medicare, Medicaid, and the Affordable Care Act. “These cuts will cause at least 17 million Americans, including more than 1.6 million Texans and 100,000 South Texans, to lose their healthcare,” Gonzalez said. He warned that the added red tape to Medicaid would prevent millions from obtaining and retaining coverage they are eligible for.
The food assistance program SNAP is also on the chopping block, with $200 billion in cuts. For South Texas, where over 65,000 households rely on SNAP, Gonzalez said the impact would be devastating: “It means over 65,000 households in South Texas alone will go hungry. It means less food for hungry families, children, senior citizens, and veterans, all to subsidize tax cuts for the ultra-rich.” He also noted that cuts to SNAP would limit children’s access to school meals, a lifeline for many low-income families.
The ripple effects don’t stop with families. Gonzalez pointed to a projected $25 billion drop in farm revenue, which would hit not just farmers, but truckers and small businesses across the country. “They will all suffer in the domino chain caused by cutting SNAP,” he said, warning that Meals on Wheels programs, already stretched thin, would be strained even further.
For all the talk of tax relief, the BBB is not without its fiscal critics. The Congressional Budget Office has estimated that the law will add $4.1 trillion to the national debt by 2034. The Bipartisan Policy Center’s analysis pegs the cost at $3.4 trillion over the next decade, ballooning to more than $4 trillion when interest payments are included. As The Center Square noted, the U.S. national debt surpassed $37 trillion in August 2025, raising alarms among budget watchdogs about the country’s long-term fiscal health.
Michigan’s state government is already feeling the squeeze. The Detroit Regional Chamber reported that the state faces a projected $677 million reduction in revenue for the 2025-26 fiscal year due to the federal funding changes, with the Citizens Research Council warning of a potential $1.1 billion budget hole. This fiscal uncertainty has fueled a contentious budget standoff between House Republicans and Senate Democrats, with both sides blaming each other for delays and accusing the other of political obstruction.
Business leaders in Michigan, meanwhile, are urging lawmakers to prioritize education funding amid the turmoil. In a letter signed by the Detroit Regional Chamber, the Small Business Association of Michigan, the Michigan Manufacturing Association, and Talent First, they warned, “When it comes to educational outcomes, Michigan is in dire straits. Without a significant long-term educational investment and strategy that transcends election results, our state, businesses and students will continue to fall further behind.” Their recommendations include achieving 60% educational attainment by 2030, boosting third grade reading and math scores, increasing funding for scholarships, and making post-secondary education tuition-free through strategic investments.
At the state level, Michigan House Speaker Matt Hall, a Republican, is looking to amplify the federal tax cuts with complementary state policies. “My position is that we should magnify the tax cuts in the One Big Beautiful Bill,” Hall said. Instead of lowering the personal income tax, he now favors eliminating state taxes on Social Security, overtime, and tips to align with the new federal law.
Still, the path forward is far from clear. With the state budget deadline looming on September 30, negotiations in Lansing remain at a standstill, and lawmakers face tough choices about how to fill looming revenue gaps without cutting vital programs. The uncertainty is already prompting some school districts to discontinue free school meal programs and other student services, according to Democratic lawmakers.
As the dust settles from the passage of the One Big Beautiful Bill Act, Americans across the political spectrum are left to grapple with its complex legacy—one that offers both tax relief and tough trade-offs, promising prosperity for some while raising difficult questions about the nation’s priorities and the future of its most vulnerable citizens.
