Update: The U.S. House of Representatives passed the "One Big Beautiful Bill Act" on July 3, and the legislation awaits President Donald Trump's signature. The President is expected to sign the bill into law on July 4.
Original Story
Yesterday, the U.S. Senate passed an updated version of what President Donald J. Trump refers to as the "One Big, Beautiful Bill Act" with a 51–50 vote. Vice President J.D. Vance cast the tie-breaking vote. The bill is now being reviewed in the House, and lawmakers hope to pass it by their self-set July 4 deadline.
The National Association of Counties (NACo) has published a preliminary blog summarizing the changes made in the Senate. They will also be hosting a webinar on Monday, July 7 at 3:00 p.m. ET to discuss the bill and its potential impact on counties. [Register here.]
The bill is presently being debated and worked on in the U.S. House. If the House does not have the simple majority to approve the bill as changed by the Senate, members of Congress in both chambers can attempt to reconcile the differences.
The summary below was created using information provided by NACo. ISACo is appreciative of our partership with NACo and the important work it does on behalf of counties.
Key Items Removed by the Senate (Due to the Byrd Rule):
- AI Regulation Ban: A 10-year ban on state and local governments creating rules for artificial intelligence (AI) was removed. This would have limited counties’ ability to respond to new technologies.
- Medicaid FMAP Penalty: A cut in federal Medicaid support for states that use their own funds to cover undocumented immigrants was taken out.
- Medicaid Provider Tax Freeze: A proposal blocking non-expansion states from raising or introducing provider taxes was removed.
- Environmental Review Loophole: A shortcut that allowed certain infrastructure projects to skip environmental review if a fee was paid was cut.
- Secure Rural Schools (SRS) Program: The SRS reauthorization was removed, but it was passed separately in another bill (S. 356) on June 18.
Wins for Counties
- Tax-Exempt Bonds Preserved: Counties can still issue tax-exempt municipal bonds, helping fund infrastructure at lower cost.
- SALT Deduction Increase: The cap on State and Local Tax (SALT) deductions increases to $40,000 in 2025 for those earning under $500,000. It gradually returns to $10,000 by 2030.
- Nursing Home Rule Delayed: The federal staffing requirement for nursing homes is postponed until September 2034, helping county-run homes manage workforce challenges.
- Affordable Housing Boost: Increases the amount of tax credits available for low-income housing by 12.5%, and makes it easier to qualify for them through 2029.
Concerns for Counties
SNAP (Food Assistance) Changes
- Benefit Cost Shift: States with high payment error rates (above 6%) must start covering up to 15% of benefit costs beginning in FY 2028. Implementation is delayed for states with especially high error rates.
- Administrative Costs Increase: Counties in 10 states that help administer SNAP will see their share of administrative costs rise from 50% to 75% starting in FY 2027—potentially increasing county costs from $1.7 billion to $2.6 billion annually.
- Expanded Work Requirements: Adults without dependents would need to meet work requirements up to age 64 (instead of 54). Also, parents with children older than 14 would be subject to these requirements.
Medicaid Changes
- Work Requirements: Starting in 2027, adults aged 19–64 on Medicaid must work, volunteer, or go to school for at least 80 hours a month unless they qualify for an exemption. States must verify this regularly. The federal government cannot waive this rule, but states can request a one-time, temporary delay.
- Cost Sharing: Beginning in October 2028, low-income Medicaid enrollees may need to pay up to $35 per service, except for certain services (like primary care, mental health, or services at health clinics). This may increase unpaid care costs for county hospitals.