by Jennifer Shutt, Arkansas Advocate
July 21, 2025

WASHINGTON — Republicans’ “big, beautiful” law will add $3.394 trillion to deficits during the next decade and lead 10 million people to lose access to health insurance, according to an analysis released Monday by the nonpartisan Congressional Budget Office.

The updated assessment of the sweeping tax and spending cuts law came weeks after nearly every GOP lawmaker voted to approve the legislation ahead of a self-imposed Fourth of July deadline. The law made permanent the 2017 tax cuts from President Donald Trump’s first term and provided billions to carry out his plans of mass deportations, an immigration crackdown and increased defense spending.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, wrote in a statement that it is “still hard to believe that policymakers just added $4 trillion to” deficits after Republican lawmakers “have spent months or years appropriately fuming about our unsustainable fiscal situation.”

“This is a dangerous game we are playing,” MacGuineas wrote. “It has been going on for years, and it was brought to new levels with this bill. And it is time to stop.” 

CBO released numerous reports throughout the months-long process showing how various parts of the bill would affect federal spending and health care access, but the scorekeeper needed additional time to evaluate changes Republicans made during the last few days of debate.

The latest figures are similar to a preliminary report CBO released earlier this month projecting the final version of the package, which underwent considerable changes in the Senate, would likely lead to a $3.4 trillion increase in deficits between 2025 and 2034.

That total was significantly higher than the $2.4 trillion increase in deficits CBO expected the original House version of the bill would have had during the next decade.

Health spending to fall by more than $1 trillion

Republicans’ numerous changes to health programs, predominantly Medicaid, will reduce federal spending during the next decade by $1.058 trillion.

The law made more than a dozen changes to the state-federal health program for lower income individuals and certain people with disabilities, though some of those have larger budget impacts than others.

Language barring Medicaid spending from going to Planned Parenthood for one year would actually increase federal deficits during the 10-year window by $53 million.

The CBO score shows that policy change would decrease federal spending by $44 million this fiscal year and another $31 million during the next fiscal year, before increasing deficits by $91 million during fiscal year 2027 and continuing.

That section of the law is on hold for the moment after a federal judge issued a temporary restraining order earlier this month that required the Trump administration to continue paying Planned Parenthood for routine health care coverage for Medicaid enrollees.

Federal law for decades has barred the federal government from spending taxpayer dollars for abortion services with limited exceptions, so the one-year prohibition on Medicaid funding to Planned Parenthood would have blocked patients enrolled in the program from going to their clinics for routine health appointments, like annual physicals and cancer screenings.

The CBO report didn’t include a state-by-state breakdown of the effects of the health care changes in the law, but the agency is expected to release more detailed analysis of the health impacts in the coming weeks.

Nutrition assistance cuts

Apart from Medicaid, two large projected deficit reductions in the law come in the agriculture title’s sections on the Supplemental Nutrition Assistance Program, or SNAP.

A provision requiring states to pay for some portion of SNAP benefits starting in fiscal 2028 would save the federal government between $5.7 billion and $6 billion per year, totalling just less than $41 billion for the first seven years it will be in effect.

And new work requirements for SNAP would result in $68.6 billion less in federal spending over the 10 years starting in fiscal 2026, the CBO projected.

Federal student loan program

Republicans’ streamlining of the federal student loan program is projected to reduce federal spending in the next decade by $270.5 billion.

As part of a sweeping overhaul of higher education, the law limits repayment options for borrowers with any loans made on or after July 1, 2026, to either a standard repayment plan or an income-based repayment plan.

Extension and expansion of tax cuts

The extension of Trump’s 2017 tax law, plus new tax breaks, will cost $4.472 trillion over the next decade, according to the latest CBO score.

The United States collects the majority of its revenue from individual taxpayers, and the continuation of lowered income tax brackets, plus an increased standard deduction, will comprise the bulk of lost revenue over 10 years, adding up to $3.497 trillion.

Trump also campaigned on several other tax cut promises, including no tax on tips and overtime, as well as no tax on car loan interest. The temporary provisions come with stipulations and will end in 2029. Together they will cost $151.868 billion.

The child tax credit increases under the new law to $2,200, up from $2,000, though lawmakers did not increase the amount lower income families can receive as a tax refund. The CBO estimates the bumped-up tax credit will cost $626.345 billion over the next decade.

Lawmakers offset some costs of the bill by repealing clean energy tax credits, including ending tax credits for personal and commercial electric vehicles, nixing energy efficiency improvement credits for homeowners, and terminating clean electricity production credits. In all, Republicans saved $487.909 billion from axing the measures meant to address the effects of climate change.

Jacob Fischler, Shauneen Miranda and Ashley Murray contributed to this report.

Last updated 3:15 p.m., Jul. 21, 2025

Arkansas Advocate is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. Contact Editor Sonny Albarado for questions: info@arkansasadvocate.com.

The post Trump tax law runs up deficit by $3.4T, throws 10 million off health insurance, CBO says appeared first on arkansasadvocate.com

Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Right

This article presents detailed coverage of a major Republican-backed tax and spending bill, emphasizing its fiscal impact and policy changes with largely factual language. The inclusion of critical analysis from nonpartisan sources like the Congressional Budget Office and fiscal watchdog groups highlights the bill’s substantial deficit increase and effects on health care and social programs, which may be viewed critically by fiscal conservatives and progressives alike. The tone is measured and focused on the legislative and budgetary consequences without overt editorializing, aligning the piece with a center-right bias that reports GOP initiatives seriously but notes associated criticisms and trade-offs.

SUMMARY: A federal judge is reviewing a lawsuit challenging Arkansas’ new law requiring the Ten Commandments to be displayed in every public school classroom. Parents from Fayetteville, Springdale, Bentonville, and Siloam Springs school districts seek to block the law before it takes effect on August 5th. Represented by the ACLU, they argue the law violates religious freedom by favoring one religion and interfering with diverse faiths. The state contends the law highlights the Ten Commandments’ historical significance, not religion. Any court ruling blocking the law would only apply to the plaintiffs’ districts. The judge plans a decision before August 5th.

Judge Reviewing Request For 10 Commandments To Not Be Displayed This School Year

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Source

p>by Tess Vrbin, Arkansas Advocate
July 18, 2025

Crawford County officials have joined the appeal of a federal judge’s award of over $441,000 in attorneys’ fees in a case that resulted in blocking parts of a 2023 Arkansas law affecting what books are available in public libraries.

Crawford County and County Judge Chris Keith filed a notice of appeal and a request to stay the monetary judgment on Thursday in the U.S. District Court for the Western District of Arkansas. Keith and the county were among the defendants, along with Arkansas’ 26 prosecuting attorneys, in 18 plaintiffs’ challenge of two sections of Act 372 of 2023.

U.S. District Judge Timothy Brooks permanently blocked the challenged sections in December, determining they violated the First Amendment. In addition to giving city and county governing bodies authority over library content, Act 372 would also have altered libraries’ material reconsideration processes and created criminal liability for librarians who distribute content that some consider “obscene” or “harmful to minors.”

Crawford County and Keith were among the defendants that lost a separate lawsuit over library content in September. U.S. District Judge P.K. Holmes ruled in favor of three parents who claimed the Crawford County Library’s segregation of LGBTQ+ children’s books into separate “social sections” violated the First Amendment.

The case was reassigned from Holmes to Brooks, who ordered the defendants to pay the plaintiffs nearly $113,000. The Crawford County Quorum Court voted unanimously in April to accept the library’s governing board’s offer to pay the fees. The board was among the defendants along with Keith, the county, the quorum court and county library director Charlene McDonnough.

In May, Brooks ordered the defendants in the Act 372 case to reimburse the plaintiffs $441,646.49 in total.

“At this time, the Plaintiffs and Crawford County have been unable to reach a settlement for the fees and costs,” the county’s attorneys wrote in Thursday’s motion to stay the execution of the payment. “Therefore, Crawford County will appeal the award of attorney fees and costs.”

Twice last year, the Crawford County defendants asked Brooks to dismiss them from the Act 372 lawsuit. Brooks denied the motions, ruling that the county and Keith would be responsible for implementing Act 372 if it went into effect and if appeals of challenged material reached the county government.

Attorney General Tim Griffin appealed the ruling on behalf of the rest of the Act 372 defendants in January.

Crawford County officials cited Act 372 as a reason to maintain the library’s “social sections” of LGBTQ+ children’s books that only adults could access. McDonnough’s predecessor, Deidre Grzymala, created the sections as a “compromise” after public outcry between December 2022 and January 2023, a few months before Act 372 became law.

In May, Grzymala sued Crawford County and a member of the library board, alleging defamation and breach of contract over her February 2023 resignation and severance package.

Arkansas Advocate is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. Contact Editor Sonny Albarado for questions: info@arkansasadvocate.com.

The post Crawford County appeals injunction of Arkansas library law, citing dispute over legal fees appeared first on arkansasadvocate.com

Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Left

This content leans center-left, primarily due to its focus on defending First Amendment rights and opposing laws that restrict access to certain books, particularly those involving LGBTQ+ themes. The article highlights legal challenges to Arkansas legislation seen as limiting library content, emphasizing the unconstitutionality of such restrictions. While the tone remains factual and legalistic, the perspective aligns with protecting free expression and inclusivity, which are commonly associated with center-left viewpoints.