How does the Big Beautiful Bill affect you in NY? What it means for taxes, food stamps

Chris McKenna for the Journal News, July 3rd, 2025

New York Democrats voiced fury as Republicans eked out final approval of a bundle of federal policy changes that are expected to strip hundreds of thousands of New Yorkers of their health coverage and monthly food aid.

 After an overnight slog of debate and arm-twisting, followed by a nearly nine-hour speech in opposition, the package of tax and spending cuts inched to completion by a four-vote margin in the House on Thursday, July 3.

 Almost every Republican — including all seven from New York — voted for the "big, beautiful bill" President Donald Trump had demanded they finish by July 4. Every Democrat opposed it. Their leader, Hakeem Jeffries of Brooklyn, gave the epic denunciation of the bill that held up the vote for much of the day.

New York's GOP members celebrated victory on a 940-page bill, touting more popular parts of the package like the continuation of lowered tax rates set in 2017 and a higher cap on state and local tax deductions.

 “This bill is a blueprint for how we can govern responsibly: provide real relief, restore security, and rein in out-of-control spending," Rep. Mike Lawler, a Rockland County Republican who's weighing a 2026 run for governor, said in a statement after the 218-214 vote.

 New York Democrats ripped Lawler and his GOP colleagues for voting on a measure that would implement Medicaid changes and slash funding for food stamps — "They had two chances to stand up to Donald Trump and fight for the people they serve," Gov. Kathy Hochul said in a statement. "They failed both times, gambling with their constituents’ lives to pay for billionaire tax breaks."

 The bill's passage is sure to ripple through heated battles next year for governor and competitive House seats like Lawler's.

Here are a few of the bill's components and how they may affect New Yorkers:

Health care coverage and funding

For the first time in its 60-year history, the public health program that serves 7 million New Yorkers will come with a work requirement. Medicaid recipients who aren't disabled will now have to file regular reports to show they're working at least 80 hours a month, or else their coverage will be revoked.

Some 1.2 million New Yorkers could be taken off Medicaid because of that and other new rules, the Hochul administration estimated in May in response to the initial House bill. Another 224,000 people enrolled in a separate state program called the Essential Plan also may be left without health care due to a new bar on coverage for noncitizens who are lawfully present in the U.S., such as asylum seekers.

 There's also a big financial impact for New York and its health care system. State officials estimated the House bill would cost the state and its hospitals $13.5 billion a year in lost funding and added expenses.

 Rural hospitals that are heavily reliant on Medicaid could face deep trouble as a result, with 11 in New York seen as most in danger of closing. In response to those concerns from their own members, Republicans included $50 billion in the Senate bill to help protect rural hospitals from the bill's Medicaid cuts.

Taxes: same rates, raised SALT deduction, new breaks

The bill makes permanent tax cuts enacted in 2017 that were due to expire at the end of this year. That means New Yorkers' income tax rates are unchanged. Republicans have cast the renewal as a tax cut — and accused Democrats of supporting a tax hike — because the rates would have reverted back to where they were if Congress didn't extend them.

 One big new item: an increase in state and local deductions sought by members from New York and other high-tax states and a key priority for Lawler. The bill hoists to $40,000 the $10,000 limit Republicans set in 2017 as part of their tax cuts.

The bill also includes new breaks on taxes for tips, overtime pay and Social Security income.

Food aid: expanded work rules, cost shifts

Unlike Medicaid, SNAP already had a work requirement that applied to adults under age 55 that don't have children. The Republican bill extends the same rules to people ages 55-64 and those with children older than 13, and restricts states' ability to grant waivers.

 The bottom line for New York: adults in some 300,000 households may lose their benefits. The program serves roughly 3 million people in all in New York.

 Final plea: Food pantry leaders plead with Lawler to save SNAP, other programs to fight hunger

 As with the Medicaid changes, there is also a fiscal impact for New York. The GOP bill pushes part of the cost of SNAP benefits to the states, which until now have always been fully funded by the federal government. The state share ranges from 5% to 25% and could add as much as $1.9 billion a year to New York's budget.

 In addition, the bill pushes a greater share of the program's administrative costs to the states, which had been evenly split until now. In New York, that means the state and its counties must shoulder 75% of those expenses instead of 50%.

 Chris McKenna covers government and politics for The Journal News and USA Today Network.