MEMO: The One Big, Ugly Bill Hurts Main Street | U.S. Congressman Lou Correa of California

TO: Interested Parties

FROM: Rep. Lou Correa (CA-46)

DATE: July 3, 2025

RE: The One Big, Ugly Bill Hurts Main Street

This week, I returned to Washington to vote against the GOP’s One Big, Ugly Bill that would strip away health care hard-earned benefits from hard-working Orange County taxpayers, children, and seniors It includes over $1 trillion in cuts to Medicaid, Medicare, the Affordable Care Act and food assistance for kids, seniors, and veterans. As a result of this legislation, over 2.3 million people in California will lose their health coverage. Across Orange County, thousands of seniors rely on SNAP and food assistance programs to keep themselves and their families fed. These essential services are now in jeopardy.

I voted against this bill—because I cannot in good conscience put the hundreds of thousands of hard-working American taxpayers in Orange County who rely on these programs to survive at risk. It’s unacceptable, unconscionable, and un-American. And this is just scratching the surface—so I wanted you to know more about what’s in this bill, and how it will impact you and your family.

CUTS TO HEALTH CARE

The bill will make more than $1 trillion in cuts to Medicaid, Medicare, and the Affordable Care Act, leaving nearly 17 million Americans uninsured. Nearly $1 trillion of that comes from Medicaid alone.

2,368,466 people in California will lose their health coverage because of the bill.
The legislation includes work requirements to receive Medicaid, with some exceptions. It adds these requirements to parents of children over the age of 14—which would make it impossible for those impacted by lay-offs to receive temporary coverage.
Cuts 1.4 million low-income seniors and people with disabilities off the Medicaid coverage that covers their premiums and cost-sharing—they will have to choose between paying for housing and food versus going to the doctor and paying for medication.
Triggers $535 billion in Medicare cuts over a decade unless Congress passes additional legislation.
Cuts federal funding for Medicaid payments to hospitals and providers (known as “state directed payments”) by nearly $150 billion. Will close hospitals and nursing homes–especially in rural areas.
Increases co-pays for people on Medicaid who make as little as $1,300 per month.
Reduces Medicaid retroactive coverage from three months to one month. Retroactive coverage is used to compensate for unexpected expenses like unexpected long-term care.
Increases monthly health insurance premiums by not extending Affordable Care Act premium tax credits that expire at the end of 2025.
Increases verification requirements and effectively ends automatic re-enrollment for Affordable Care Act coverage.
Defunds Planned Parenthood, including its cancer screenings and birth control services.

TAX CUTS FOR THE WEALTHY

The bill extends the Trump tax cuts—which disproportionately benefit the top 0.1% of earners (those earning over $3.5 million). It saves the top .1% of earners $309,000 per year in tax cuts ($847 every day); those earning less than $50,000 will only see $247 per year in savings.

The cost of these tax cuts are offset by limiting eligibility for Medicaid and nutrition programs, modifying student loan repayments, rolling back clean energy tax credits, and new immigration fees.
The bill’s tax cuts disproportionately benefit higher earners. In California, per year:
- Top 1% of households will save $35,260
- Next 4% of households will save $19,110
- Next 15% of households will save $6,020
- Bottom 20% of households will save $100

ADDS TO THE NATIONAL DEBT

The CBO estimates the latest version of the bill would add $3.4 trillion to the $36.2 trillion debt pile over 10 years.

That increased debt effectively serves as a wealth transfer from younger to older Americans, as it will slow economic growth, raise borrowing costs and crowd out other private and government spending in the decades to come.
Last year the government spent more on net interest than either national defense or Medicare. It is the second highest government expense, only behind Social Security.

CUTS TO SNAP

Expands work requirements, mandating that "able-bodied adults" must work up to 80 hours a month up to age 64 to receive benefits. This is a boost from the current age limit of 54.

It also shifts more of the financial burden for SNAP from the federal government onto states—and in the case of California, the counties.
Increases paperwork requirements for SNAP beneficiaries, putting 5 million people, including 800,000 children and more than 500,000 adults 65 years and older and people with disabilities at risk of losing some or all of their SNAP benefits.

HURTS HIGHER EDUCATION

Nearly half a million graduate students nationwide would each lose access to tens of thousands of dollars in school loans annually because of the bill.

It would eliminate the grad PLUS federal student loan program—which allows students to borrow up to the full cost of their schooling (minus other financial aid)

One in five master’s graduates and a quarter of STEM graduates in the country who take out loans relay on PLUS loans.
This would hit low-income students the most.

The legislation would reshape the federal student loan repayment system for nearly every borrower currently in repayment. The bill creates a new “Repayment Assistance Plan,” which would be based on income, and a standard plan, with fixed payments for 10 to 25 years based on debt load.

Existing borrowers will have until July 1, 2028 to choose to transition to the new Repayment Assistance Plan or other existing income-based plans.

For the average borrower, the bill will increase monthly student loan payments by almost $200.
Reduces the amount part-time students can borrow in proportion to their enrollment status.
It eliminates resources to help struggling borrowers by eliminating economic hardship forbearances and limits the length of time loans can be in deferment.
Limits Pell Grant access: Borrowers with a student aid index twice or more than the total maximum Pell Grant for the academic year wouldn’t be eligible. Students also wouldn’t be eligible for a Pell Grant if they received more than their cost of attendance in aid from other sources.

IMPACTS ON IMMIGRATION

It will make this Administration's immigration crackdown even-more forceful and indiscriminate by giving ICE more funding to ramp up mass-deportations.

Provides $45 billion for ICE to increase detention capacity from 41,000 to 100,000 people—including single adult detention and family residential centers.
Would establish new mandatory immigration-related fees, including for asylum seekers and filers in court.
Includes an additional $29.9 billion for ICE personnel and administrative costs.

HARMS ENERGY TAX CREDITS

It will make energy less-affordable and delay the transition to clean and renewable energy sources that could save hard-working American taxpayers thousands each year.

Eliminates the maximum $7,500 tax credit for individuals to purchase certain new electric and hybrid vehicles after Sept. 30, 2025. It’s currently set to expire starting in 2033.
Also eliminate the maximum $4,000 tax credit for certain pre-owned electric and hybrid passenger vehicles and credits for electric and hybrid commercial vehicles after Sept. 30, 2025.
Repeals the energy efficient home improvement credit, which individuals can access after installing more energy efficient windows, heat pumps, and other upgrades.
Repeals the residential clean energy credit, which applies to residential installation of solar and other clean energy upgrades.
Eliminates the following tax credits after June 30, 2026

Alternative fuel vehicle refueling property tax credit, which applies to entities that install equipment for EV charging and other clean fuel sources.
New energy efficient home credit, which applies to newly built homes that meet certain Energy Star standards.
Energy efficient commercial buildings deduction, which supports installation of HVAC and water systems in commercial buildings.

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