Passage of the "Big, Beautiful" bill could lead to a crisis for Michigan residents: cuts to health care and food subsidies are possible

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https://www.freep.com/story/news/local/michigan/2025/07/23/michigan-business-tax-reductions-trump-big-beautiful-bill/85326212007/

Recently, the Michigan House Finance Bureau released a report stating that the newly passed "Big and Beautiful Act" will have a profound impact on the state's finances, particularly the significant reduction in business tax revenue that may affect multiple social welfare programs, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. State budget director Jen Flood has warned that the implementation of the bill may result in some low-income groups losing healthcare coverage and facing higher food expenditure pressures.

The fiscal gap is worsening, with livelihood projects bearing the brunt

The report shows that the "Big and Beautiful" bill stimulates economic growth by lowering business tax rates, but will significantly reduce state government tax revenue in the short term. Due to the deep binding of Michigan's fiscal budget with federal funding programs such as Medicaid and food stamps, tax cuts may force the state government to cut related expenditures. Vlad emphasized, "This is not a hypothesis - people will have to make difficult choices between healthcare and food

The Medicaid program provides basic healthcare coverage for approximately 2.5 million low-income residents in Michigan, while the SNAP program supports the food needs of nearly 1.4 million people. If funds are reduced, eligible families may face tightened eligibility or reduced benefits. For example, some chronic disease patients may not be able to continue receiving pres**tion drug subsidies, and the food voucher amount for single parent families may not be sufficient to cover their monthly expenses.

Controversy and Response: Can Economic Growth Compensate for Losses?

Supporters of the bill believe that tax cuts will attract corporate investment, create long-term employment, and expand the tax base. Paul Smith, the Republican leader in the state legislature, said, "Short term pain is for long-term prosperity." However, critics point out that similar policies implemented in other states have led to a decline in the quality of public services. Michigan Democratic Congressman Lisa Chen countered, 'Exchanging poor people's dinners and pills for GDP numbers is not economic policy, but moral bankruptcy.'. 」

The non-profit organization Michigan Fair Economy Alliance analyzed that if the bill is implemented in its current version, the state's poverty rate may rebound to the level of the 2010 economic crisis. Maria Gonzalez, the director of the alliance, called on lawmakers to implement transitional assistance programs instead of allowing vulnerable groups to bear the cost

Public concern: The cost of survival continues to rise

Detroit resident Sharon Williams is a dual beneficiary of both Medicaid and SNAP. She admits, "If I lose the subsidy, I can only stop taking medication or let my children go hungry." Similar anxiety is spreading in low-income communities. At the same time, supermarket prices have been rising year by year due to inflation, further reducing the purchasing power of food coupons.

The state government has stated that it is evaluating buffer measures, but has not disclosed specific plans. As the effective date of the bill approaches, the livelihood difficulties in Michigan may trigger broader social discussions.