House passes Trump's deficit-swelling tax bill, impacting California benefits

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Californians could see major changes to Medi-Cal, food stamps, border security, and taxes under a sweeping Republican bill that passed the U.S. House early on May 22.

The proposal, which President Donald Trump has dubbed the "big, beautiful bill," would enact Trump's major campaign promises like eliminating taxes on workers' tips and overtime, and is likely to be one of the most significant pieces of legislation that will be passed during his second term in the Oval Office.

It passed the House 215-214, with all Democrats and two Republicans — Reps. Thomas Massie of Kentucky and Warren Davidson of Ohio — voting against it after a marathon all-night debate. Republicans had only three 'no' votes to spare in the closely-divided House.

The "big, beautiful bill" still has a long way to go before it becomes law.

The bill will next go to the Senate, which has already made clear that it plans to make changes. If that happens, the two chambers would still have to hash out the details capable of winning majority votes before they can send it to Trump's desk to be signed into law.

More: The winners (and losers) in Trump's 'big beautiful' tax bill

Big Beautiful Bill tax cuts to have acute impacts on Californians

Trump's proposal will directly affect Californians in lower tax brackets.

"Here's the truth," California Rep. Nancy Pelosi posted on X, "they’re slashing Medicaid and ripping health care from those who need it most to fund tax breaks for billionaires who need it least."

She and many others who oppose the "big, beautiful bill" call it "Robin Hood in reverse."

CalFresh benefits

The bill would cut the Supplemental Nutrition Assistance Program (SNAP) by 30%, CNBC reported, reducing the program's federal funding by about $300 billion through 2034.

SNAP provides food assistance to more than 2.8 million households in California under the CalFresh program, meaning proposed cuts in the "big, beautiful bill" would significantly impact lower-income Californians who rely on CalFresh, including 1.8 million children.

Food assistance eligibility will also be limited to citizens and lawful permanent residents under Trump's proposal, and prevent future presidential administrations from increasing benefits without Congressional approval.

Read More: The 5 House Republicans who didn't vote for Trump's sweeping tax bill

Cuts to Medi-Cal

The House-passed resolution would cut nearly $700 billion from Medicaid.

California receives a staggering $134.9 billion in federal aid for Medi-Cal healthcare services, of which 15 million low-income Californians utilize, including 41% of children, 49% of adults with disabilities, and 41% of people living in nursing homes. 

The legislation would bar Medi-Cal from funding services at clinics that also perform abortions, such as Planned Parenthood, USA Today reported, and discourage states from using their own funds to provide coverage to undocumented children.

Riverside Rep. Paul Ruiz said California will either need to raise taxes or shift funds from other programs to supplement the cuts to Medi-Cal, greatly impacting the state's fiscal budget.

Clean energy tax credits

In last-minute changes to the bill, Republicans also sped up the timelines for phasing out key clean energy tax credits.

The president is outspoken in opposing electric vehicle infrastructure funding, which has resulted in a multistate lawsuit spearheaded by Gov. Newsom, accusing President Trump of "unlawfully" withholding funds that would reduce toxic pollution, expand access to clean vehicles, and create thousands of green jobs.

The "big, beautiful bill" would end tax credits that help lower the cost of electric vehicles, energy-efficient appliances, rooftop solar, and insulation, CNN reported.

According to data from the California Energy Commission, the sales of new zero-emission vehicles have soared 1022% over the past 10 years, with one in four new cars sold in California being zero-emission.

Included in the proposed bill is a cut to California's incentivized grants and rebates for low-income Californians to purchase electric vehicles through the Clean Cars 4 All program, including up to $7,500 in federal tax credit for purchasing zero-emission vehicles.

Read More: What's in Trump's big tax bill? Here's what you need to know.

Tougher illegal immigration crack-downs

According to the U.S. Department of Homeland Security, there were roughly 2.6 million undocumented immigrants in California in 2022.

The White House states that the "big, beautiful bill" will empower Immigration and Customs Enforcement to deport the "millions of illegal immigrants that entered under Joe Biden." It will also ensure illegal immigrants do not receive food stamps or Medicaid, tax money undocumented immigrants send out of the country, and will "permanently secure the border."

SALT reduction bill

The big bill included the $40,000 SALT reduction bill that raises both the state and local tax (SALT) deduction cap to $40,000 for taxpayers making more than $500,000 a year.

SALT refers to the ability to deduct taxes paid to state and local governments from an individual’s federal tax bill. This amount was previously capped at $10,000 by the 2017 Tax Cuts and Jobs Act, but would now be increased under the "big, beautiful bill."

The increased cap may prove beneficial to Californians struggling with higher costs of housing, USA Today reports. The Property tax relief may be one means of easing the burden, even as some observers say taxpayers across the country shouldn’t be on the hook for decisions made in other states and localities.

The clock is ticking: Treasury Sec. Scott Bessent warned that the U.S. is likely to hit the debt ceiling in August and urged lawmakers to finalize changes to the "big, beautiful bill," which raises the debt ceiling by $4 trillion, before leaving for their summer recess at the end of July.

McKenna Mobley is a reporter at the Daily Press. She can be reached at mmobley@gannett.com.