Republicans cheer U.S. House passage of ‘Big Beautiful Bill’; experts warn costs to state will increase

Barrett accuses Dems of trying to ‘scare people to believe the sky is falling’
May 22, 2025
by
6 mins read

Sharing is caring!

After an early Thursday morning vote on the Trump-backed federal budget dubbed the “One Big Beautiful Bill,” Michigan’s congressional Republicans celebrated the passage of its provisions on taxes, border security and federal spending – but others and state officials warned it could have an outsized budgetary impact on the state and lead to heavier administrative burdens in Lansing.

Among the main components of the bill, which still must get past the U.S. Senate, are a $700 billion cut to Medicaid, achieved partly through work requirements, an increased financial responsibility for states in administering and providing SNAP benefits, and the elimination of several Biden-era clean energy tax rebates and credits. It also includes more federal funding for southern border security and deportations, increased U.S. Department of Defense funding to construct a “Golden Dome” missile defense shield akin to Israel’s Iron Dome, and a tax on some university endowments.

While Democrats opposed to the bill, rifts within the U.S. House Republican conference meant changes were made to the bill early into Thursday morning to secure votes from holdout members. After passage, congressional Republicans appeared a united front in supporting the bill’s provisions, regardless of prior concerns from blue state GOP members over Medicaid cuts and complaints from the party’s right flank that the tax and spending cuts within the bill weren’t sufficient.

Republican members of Michigan’s congressional delegation characterized the bill as a cost-lowering measure and emphasized its provisions on taxes and the southern border. U.S. Rep. Tom Barrett, R-Charlotte, who represents Michigan’s 7th District, which includes Livingston County, brushed off concerns about Medicaid, arguing the bill actually strengthens it, and saying Democrats are trying to “scare people into believing the sky is falling.”

U.S. Rep. Tom Barrett

“The people of mid-Michigan sent me to Congress to do the hard work necessary to lower the cost of living, secure our border, and unleash American energy. The legislation we passed today makes good on those promises and more,” Barrett said in a statement. “Not only does H.R. 1 deliver the largest tax cut in history for the working class and small businesses, it eliminates taxes on tips and overtime pay, makes American-made cars built in Michigan more affordable, provides significant relief for seniors collecting Social Security benefits, and boosts the child tax credit to support families across the country.”

“In November, the American people gave Donald Trump and Republicans a mandate to secure the border, lower costs, fuel economic growth, and put America First. The One Big Beautiful bill restores fiscal responsibility to Washington while safeguarding vital programs like Social Security, Medicare and Medicaid,” U.S. Rep. John James (R-Shelby Township), a candidate for governor, said in a statement. “It strengthens border security, including at our northern border, and fosters a pro-growth, pro-family economy that prioritizes working-class Americans. This is a huge win for Michigan and the entire country. President Trump and House Republicans are delivering on our promises to usher in a new American Golden Age where all Americans can thrive.”

U.S. Rep. Bill Huizenga called the legislation “transformative legislation to deliver permanent tax relief for middle class families and small business job creators.”

Gov. Gretchen Whitmer slammed the bill and expressed disappointment at Barrett, Huizenga and James, the three Republicans in contested districts for 2026 who some saw as potential opponents of the legislation.

“We cannot accept this level of cruelty towards people who need help, and I encourage all the Republicans in our congressional delegation including Rep. John James, Rep. Tom Barrett, and Rep. Huizenga who voted for these cuts to reckon with the devastating impact this bill will have on their fellow Michiganders,” Whitmer said.

James faces a tough gubernatorial race. Barrett’s reelection will likely be one of the most competitive in the country.

Huizenga is considering a U.S. Senate bid that would be extremely competitive, or reelection to a potentially more competitive 4th U.S. House District.

Whitmer also said the impact of the bill’s provisions, if enacted by the U.S. Senate in their current state, would cause a significant gap in funding for state programs, particularly ones supported by Medicaid or SNAP.

“We cannot backfill this massive hole in our budget with state funding alone. We need our representatives in Washington to fight for us. We must work together to help families in Michigan succeed, and the way to do that is by investing in the fundamentals that they all need – roads, schools, food, health care and child care,” Whitmer continued. “We’ve proven that here in Michigan, if you work together, you can get a lot done. Instead of passing a huge bill on a party-line vote to make people poorer and sicker, let’s work together to make a real difference in people’s lives and lift them up.”

With Michigan’s budgetary process on the rocks, the federal budget placing a higher burden on states could be particularly pressing in the upcoming fiscal year if the bill is passed by the U.S. Senate in its current iteration. Citizens Research Council Analyst Bob Schneider, also a former House Fiscal Agency director, said the cost of implementing its Medicaid provisions alone would be significant.

Although no official estimate has been made on what costs might be, Schneider said the Department of Health and Human Services would need to devote significant IT resources and staff time to implementing work requirements for Medicaid and to follow the bill’s requirement for Medicaid eligibility to be re-checked twice a year instead of once.

“It won’t be cheap,” he said, noting that the bill itself only sets aside $300 million nationwide for states to administer and monitor the new requirements.

Schneider said the SNAP changes within the bill would have states shoulder 5 percent of benefit costs beginning with the 2028 fiscal year and 75 percent of the administrative costs, up from 50 percent. Based on CRC data from last year quantifying the number of Michiganders on food assistance, he said the state would need to backfill an estimated $250 million, presumably from the General Fund, to continue administering SNAP.

“It’s the federal government saying ‘Look, we feel like we can’t afford it, so we’re passing the costs on to you,'” Schneider said.

DHHS did not immediately return a request for comment on how it believes it will be affected by implementation of the bill’s provisions.

The politics of the bill

The bill quickly became political fodder on either side of the aisle, where both parties are looking to the 2026 midterms for control in Washington. The Democratic Congressional Campaign Committee slammed Huizenga and Barrett for their votes on a “singularly devastating piece of legislation.”

“Their cruel cuts to nutrition assistance will end up taking away food from millions of children at the dinner table and the school cafeteria. Their budget sends a cruel, but clear message about what Republicans’ priorities are: massive benefits for the wealthy at the expense of everyone else,” DCCC Chair Suzan DelBene said in a statement. “As Republicans forced this dangerous bill through the process, House Democrats fought to be a voice for the American people. It was House Democrats who worked to fight for policies to actually lower costs, expand access to quality care, and invest in the middle class, only to be rebuffed by House Republicans.”

“America cannot afford the Republican tax scam,” DelBene continued. “Now that these vulnerable Republicans are on the record voting for it, this betrayal of the American people will cost them their jobs in the midterms and Republicans the House Majority come 2026.”

Meanwhile, the National Republican Congressional Committee was quick to attack U.S. Rep. Kristen McDonald Rivet (D-Bay City), whose district is one of the state’s most purple, and U.S. Rep. Haley Stevens (D-Birmingham), who’s running for U.S. Senate.

“Kristen McDonald Rivet’s radical vote is unacceptable,” NRCC spokesperson Zach Bannon said in a statement. “Instead of doing her job and making her constituents’ lives better, she just voted to raise their taxes, take away their jobs and undermine our national security. Michigan voters will consistently be reminded of this betrayal all the way through next fall.”

Health care and environmental advocacy groups decried the bill’s passage. The Michigan League for Public Policy is part of a 240-group coalition opposing the Medicaid cuts in “the strongest possible terms,” said their president and CEO, Monique Stanton, in a statement. According to a report from DHHS, an estimated 700,000 Michigan residents would lose their Medicaid eligibility under the bill as passed by the House.

“Congress has passed one of the most harmful and shortsighted pieces of legislation in a generation, slashing Medicaid and turning its back on tens of millions of Americans, including one-in-four Michiganders who rely on it every single day,” Stanton said. “Let’s be clear about what this bill does: it guts health care coverage for families with low incomes, seniors, children and people with disabilities. It rips away resources from nursing homes and hospitals. It throws red tape in front of people who need care. And it devastates rural communities, where Medicaid is often the only reason a clinic or hospital can keep its doors open.”

Mothering Justice CEO Danielle Atkinson’s statement had a similar sentiment, emphasizing the role Medicaid plays in supporting low-income families, expectant mothers and young children.

“Every lawmaker who voted to pass this bill will be devastating communities of color and families that rely on Medicaid, SNAP, and other critical services now on the chopping block,” Atkinson said. “This sham budget is a handout to billionaires – giving them tax breaks while they take money from our most vulnerable communities. The Senate must stop this billionaire budget.”

Climate Power Executive Director Lori Lodes called Barrett’s vote a “reckless betrayal” of his constituents in her statement, but noted the disapproval several U.S. Senate Republicans have expressed for the House bill.

“These same members have celebrated ribbon cuttings, touted new projects, and promised to protect the very investments they just voted to eliminate,” Lodes said. “But this fight isn’t over. Senate Republicans have made it clear the House bill is unacceptable. Every single House member who voted to risk jobs in their districts, drive up costs and threaten made-in-America energy will have to answer for that vote back home.”

– By Lily Guiney and Daniel Schoenherr

DON’T MISS A BEAT

Sign up for our weekly newsletter

We don’t spam!

Top

Don't miss this post