President Donald Trump signed the “One Big Beautiful Bill Act” into law on July 4, cutting taxes, Medicaid and potentially raising the federal deficit by $2.5 to $3.3 trillion in the next decade, according to the Congressional Budget Office.

In total, the bill cuts taxes by around $4.5 trillion, raising income by 2.2% a year for the top 20% of earners, while reducing income by 2.9% a year for the bottom 20% of Americans when factoring in cuts to Medicaid and SNAP, according to a Yale Budget Lab analysis from June 30. 

State Representative Chris Rabb (D), who represents Mt. Airy and recently announced that he will run for Congress, told the Local that the Act “is a gift to billionaires. A devastating attack on working families and vulnerable communities. Another nail in the coffin for democracy and civil society.”

He added that it was “an unparalleled opportunity for the Democratic Party in the 2026 election cycle to recommit itself to being the party that serves the interests of working people over the influence of the donor class.”

The Congressional Budget Office estimated that over 10 million Americans would become uninsured by 2034 as a result of the bill. Over 2.8 million Pennsylvanians are covered by Medicaid. 

State Representative Tarik Khan (D) told the Local, “It’s devastating that over 300,000 Pennsylvanians will lose their health coverage and 140,000 will lose their food assistance because of this Washington bill.”

He added, “As a nurse practitioner, I’ve seen firsthand both how simply having health insurance saves lives, and how Medicaid reimbursements keep our hospitals and health centers open. But I guess the opportunity to give multimillionaires huge tax cuts was too much for Washington lawmakers to pass up.” 

Alex Schnell, a Division 5 committeeperson for the Ninth Ward Republicans, sees the changes to Medicaid differently, telling the Local, “I see both promise and peril in the so-called 'One Big Beautiful Bill.' On the positive side, its Medicaid reforms hinted at restoring local control and reducing federal micromanagement, a step in the right direction for empowering communities.” 

He added, “But adding $2.5 plus trillion to the national debt without structural reform is a betrayal of fiscal responsibility and constitutional restraint. That’s not real reform, it’s just a repackaged burden. Chestnut Hill deserves solutions that strengthen voluntary safety nets, uphold local autonomy, and stop mortgaging our children’s future to fund centralized promises.” 

During the 2024 presidential race, Trump campaigned partly on a “no tax on tips” policy. Part of the bill allows workers to deduct $25,000 in money earned from tips annually from their taxable income. Earnings past that $25,000 limit will be federally taxed. This provision expires in 2028. 

State Representative Andre Carroll (D), who represents Germantown, says his district will be hit hard. He told the Local, “I represent over 60,000 folks in the 201st legislative district in Pennsylvania. My district currently holds the third highest unemployment rate in Pa.”

He added, “Over half of the people I represent are on some sort of subsidized healthcare. The cuts and effects of this bill will have grave and deadly impacts for the people I call neighbors. What is happening in Washington is dangerous and unbecoming of who America should be.” 

Tommy Tucker can be reached at Tommy@chestnuthilllocal.com.