The One Big Beautiful Bill Act, strongly pushed by the U.S. President Trump, was recently passed in the House of Representatives by a narrow margin and has now been sent to the Senate for review, with a vote expected before July 4th. However, the bill has immediately triggered an open letter signed by six Nobel Prize-winning economists, warning of its potentially serious negative impacts, which could influence the subsequent potential voting results.
Economists Warn: Impact on Low-Income Households and Escalating National Debt
Six distinguished scholars, through the non-partisan think tank "Economic Policy Institute", pointed out in their open letter that the bill could severely impact low-income families. Specifically, the bill proposes weakening federal Medicaid and SNAP, where Medicaid's mandatory work requirements and eligibility reviews might cause millions of low-income individuals to lose health insurance; reducing SNAP (food stamps) could also exacerbate poverty and malnutrition issues.
We are seriously concerned about the budget reconciliation bill passed by the U.S. House of Representatives on May 22, 2025. Medicaid provides health insurance for low-income Americans... Medical assistance covers 41% of births in the United States, including over 50% of births in Louisiana, Mississippi, New Mexico, and Oklahoma states. Work reporting requirements clearly will not save any costs from these Medicaid functions...
National Debt Faces Credit Crisis: Benefiting the Wealthy
Moreover, economists expressed deep concerns that the bill will cause a sharp rise in U.S. national debt. The Congressional Budget Office (CBO) forecast indicates that the national debt may increase by 3.8 trillion dollars within the next decade. Critics also believe that the bill's primary beneficiaries are high-income groups, which will further expand the wealth gap. Nobel Prize-winning economist Paul Krugman further warned that this policy might trigger a "sudden stop" crisis for foreign investments. Economists thus unanimously call on the Senate to reject the bill or make significant modifications to its terms.
Although the One Big Beautiful Bill Act has passed in the House of Representatives, its prospects in the Senate and its profound impact on U.S. finances will depend on the upcoming review and are attracting widespread attention.
The United States' structural deficit is already too high, with actual debt repayment approaching historical peaks in the past year. The House bill adds 3.8 trillion dollars in additional tax cuts on top of these existing fiscal gaps, and these tax cuts are overwhelmingly tilted towards the highest-income families. Even after cutting safety nets, the House bill will lead to an increase in public debt of over 3 trillion dollars in the coming years (if terms become permanent rather than phased out, over 5 trillion dollars in the next decade). Higher debt and deficits will bring clear upward pressure on inflation and interest rates in the coming years.
