The One Big Beautiful Bill will shrink resources for the poorest Americans while giving a boost to middle-income and wealthy households, per CBO.
The Congressional Budget Office’s latest assessment of the OBBB underscores the GOP’s political challenge. People see a bump from the law’s tax cuts, which helped unite Republicans behind the bill. But deep spending cuts leave the lowest-income people with less.
Democrats requested the new data from the non-partisan CBO, and they’ve been quick to seize on it. Democrats have been hammering the GOP over Medicaid cuts and tax cuts for the wealthy, making that contrast the core of their political message on the law.
The numbers. CBO found that Americans’ resources will increase on average over the next decade thanks to the law, but the impacts vary at different income levels.
Households in the lowest 10% of income earners will see their resources decline by about $1,200 per year under the OBBB. That’s mainly due to Medicaid and SNAP cuts, CBO says.
Middle-income households will see their resources grow by an average of $800 to $1,200. But it’s the wealthiest 10% that get the biggest benefit. Those households will see resources rise by about $13,600, largely thanks to tax cuts.
CBO also said new work requirements for SNAP will lead 2.4 million fewer people to get benefits in an average month.
