Answering Your Questions on the One, Big, Beautiful Bill
Last week, the House passed, and President Trump signed into law, the One, Big, Beautiful Bill (OBBB).
This bill is not perfect, but it does secure incredible wins for our farmers, hardworking families, small business owners, seniors, vulnerable populations, and everyone in between. There is a lot of misinformation being spread on the OBBB, and I want to make sure your questions are answered and concerns are addressed.
Below are some frequently asked questions on the OBBB as well as answers that show how this bill works for Wisconsinites and Americans across the country.
QUESTION: Does the OBBB reduce the deficit?
ANSWER: Yes. The OBBB will reduce the deficit by $184 billion by unlocking $2.6 trillion in new growth and rooting out $1.7 trillion in wasted American tax dollars over the 10-year budget window.
The CBO forecast used a historically low and overly pessimistic growth rate of just 1.8% because it assumed the last four years of the Biden administration stagnation and recklessness would continue.
The OBBB assumes a more reasonable, modest GDP growth of 2.6% – achieved by extending and enhancing pro-growth tax cuts, rolling back the previous administration's barrage of regulations, lifting people out of poverty, and unleashing American energy dominance. Additionally, Congress can pass more recissions packages to further cut wasteful government spending.
QUESTION: I’ve seen that the bill only gives tax cuts to the wealthy. Is that true?
ANSWER: The OBBB delivers the largest tax cut for working and middle-class Americans in history.
- Hardworking Americans and families will see an average increase in take-home pay of $10,000/year.
- No tax on tips or overtime pay
- The Child Tax Credit increases to $2,500 for 40 million families.
- Historic tax cuts for seniors.
- Increases the Death Tax exemption for two million family farms.
QUESTION: Will the bill kick millions of Americans off their healthcare?
ANSWER: This is entirely false. The OBBB protects eligible Americans on federal government assistance – including Medicaid.
By strengthening the integrity of Medicaid by eliminating waste, fraud, and abuse, its resources can be refocused on providing better care for those whom the program was designed to serve: pregnant women, children, individuals with disabilities, seniors, and other vulnerable low-income Americans.
In just the past year, taxpayers spent $56 billion on benefits for able-bodied adults abusing the system—and over a million illegal aliens are receiving free health care on the backs of taxpayers. The OBBB removes illegal aliens, enacts work requirements for able-bodied adults, and protects Medicaid for the truly vulnerable.
QUESTION: Does the bill take SNAP benefits away from veterans?
ANSWER: No. Under OBBB, states will once again be required to engage veterans who receive SNAP in work, volunteering, or job training for 20 hours/week.
This was the status quo from 1996-2023 before Democrats demanded we deny veterans a chance at the opportunity and upward mobility that work and career and technical education can provide in the Fiscal Responsibility Act negotiations. Veterans who are over 64, mentally or physically disabled, taking care of a dependent under the age of 14, taking care of a disabled child or aging parent, participating in a drug or alcohol treatment program, in school at least half of the time, or participating in a job training program at least half the time will see no change in their status, as they are exempt from the work requirement.
QUESTION: How does the bill benefit seniors?
ANSWER: House Republicans delivered on President Trump’s promise to protect America’s seniors and strengthen their financial security.
- The OBBB delivers $75 billion in targeted tax relief to help seniors afford everyday necessities like medication, housing, and food.
- Provides a $4,000 bonus to the standard deduction for seniors.
- Protects and strengthens Medicaid.
QUESTION: Wisconsin has a relatively low SNAP payment error rate in comparison to other states. Does the bill force Wisconsin to pay the tab of other states who have high error rates?
ANSWER: No. While states with higher error rates like Alaska will have a delay in cost share payments to allow them time to bring down their error rate, Wisconsin will not cover the cost for other states. In fact, Wisconsin will pay 0% of the cost share.
In 2024, Wisconsin had a SNAP payment error rate of 4.47%. Legislative adjustments made in the Senate allow states with error rates under 6% to pay zero percent of the cost share. As long as Wisconsin continues to keep the error rate under 6%, the state will have no cost share payment.
QUESTION: Agriculture is one of the most important industries in Wisconsin. Is there any support for farmers?
ANSWER: Absolutely. When I joined Congress, I was the first Wisconsin member to serve on the House Agriculture Committee in a decade, so it was imperative that there was good policy for our farmers in the OBBB.
The OBBB includes the first meaningful investment to the farm safety net since 2002, preventing the need for costly, ad-hoc spending and addressing the decline in the farm economy.
It also invests in agricultural research and livestock biosecurity, increases the dairy Tier I cap to 6 million pounds, provides for the addition of 30 million new base acres, invests $6 billion in Title XI crop insurance, and bolsters agricultural trade promotion.
QUESTION: What about our rural hospitals? They already struggle and rural America cannot afford for them to close.
ANSWER: Our rural hospitals are protected in the OBBB. In fact, the bill allowed Wisconsin to capitalize on a 6% provider tax rate.
Wisconsin had a 1.7% provider tax rate, which had not been updated in nearly a decade. The OBBB allowed non-Medicaid expansion states, like Wisconsin, with provider tax rates of up to 6% to remain untouched. There was a great opportunity in the OBBB to have Wisconsin’s provider tax rate increase to 6%, which is why I urged Governor Evers to sign the Wisconsin FY 2025-27 state budget into law to allow prior to the passage of OBBB. The Governor signed the state budget bill in time, and Wisconsin will now have a 6% provider tax rate.
Additionally, Wisconsin will receive a $500,000,000 plus up for rural healthcare infrastructure, and an additional billion dollars annually for BadgerCare through the increase in the provider tax rate.
QUESTION: We still need to strengthen our borders. What does the OBBB do to enhance our border security?
ANSWER: We absolutely must continue to fulfill our mandate to the American people to restore order at our borders and put the safety of Americans first. The OBBB delivers on this mandate by securing historic investments in our border security and border patrol workforce.
- Provides $855 million for CBP fleet vehicles and more than $6 billion for border technology investments.
- Allocates more than $46 billion to construct and finish the border barrier system, including 701 miles of primary wall, 900 miles of river barriers and 629 miles of secondary barriers, and replacing 141 miles of vehicle and pedestrian barriers.
- Rebuilds our CBP workforce by funding 3,000 new border patrol agents, 5,000 new Customs and Border Protection officers (CBPO), 200 new Air and Marine (AMO) agents, and 290 support staff.
QUESTION: Are there any benefits for small businesses?
ANSWER: The OBBB makes the Tax Cuts and Jobs Act permanent, including the small business deduction, which will help main street businesses grow and hire.
Small and local businesses are the backbone of our communities, and failure to pass the OBBB would have resulted in a $4 trillion tax hike on small and local businesses. Passage of the OBBB is a win for America’s small businesses.
- A permanent extension of the 20% small business deduction for 30 million small businesses across the nation.
- Doubling the small business expensing limit to $2.5 million, allowing small businesses to invest in their operations.
- Enhancing tax benefits for the sale of qualified small business stock to help attract investment to new small businesses.
- Raising the 1099-MISC threshold to $2,000, reducing the paperwork burden for small businesses and workers.
- Increases the Death Tax exemption for two million family farms.
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