Trump’s ‘One Big Beautiful Bill’ and Its Implications for Hoosiers
Legislative Changes Could Impact Hoosier Lives
President Donald Trump’s “One Big Beautiful Bill Act” has cleared a significant hurdle, with the U.S. Senate giving it a narrow thumbs-up on July 1. This legislation, which has stirred debates for months, looks set to create ripples for Hoosiers, especially in areas concerning taxes and Medicaid. With projected spending cuts and tax adjustments, access to vital government programs could very well change for many in the state.
Medicaid and SNAP Eligibility Under Threat
For Hoosiers relying on Medicaid and SNAP, the stakes are particularly high. Thousands may suddenly find themselves cut off from these essential supports. The Senate’s proposal to slash the provider tax—a key revenue source for Indiana’s Medicaid expansion—has raised alarms, suggesting that the current health program could struggle to survive. State leaders are warning that if the provider tax is reduced from 6% to 3.5%, fewer people would be eligible for essential health care services, putting many in a precarious position.
Tax Provisions Benefit Wealthy Hoosiers
Additionally, taxpayers might breathe a sigh of relief as the impending expiration of tax cuts from 2017 could be a thing of the past if this bill passes through. The Tax Foundation warns, though, that letting those cuts fade could mean an average $1,936 increase in taxes for Hoosiers from 2026 onwards. Moreover, the legislation includes other perks like a temporary deduction for seniors, as well as deductions for auto loan interest on U.S.-made vehicles, which would primarily benefit higher-income earners in Indiana.
Clean Energy Incentives in Jeopardy
Another area that stands to lose is the clean energy sector, particularly for Indiana homeowners eyeing tax credits for green upgrades. While incentives were meant to linger until the 2030s, the new bill would sunset these credits sooner, ending what many saw as essential support for solar and energy-efficient renovations. This poses the risk of stalling progress in clean energy jobs—more than 4,000 of which rely on these incentives.
Short-term Relief for Workers Possible
Lastly, there’s some good news for those in tipped jobs or working overtime as the bill proposes temporary tax deductions on these earnings. Up to $12,500 in overtime pay would be deductible, giving a possible boost to Hoosiers who work long hours. Mitch Olson, representing a local design firm, expressed optimism that these tax breaks could help retain and attract staff, which is crucial for business growth. However, all these benefits are set to expire after 2028, and it’s a point many will keep an eye on as the legislative process unfolds.
