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Impact of the BBB Act on Tri-Cities (7/9/25)

The HR-1 “Big Beautiful Bill Act” could have significant effects on the tri-city area. The bill can be summarized as significantly cutting social welfare programs while simultaneously providing substantial tax cuts. The extent to which a region is affected by the bill depends on its current economic conditions.

First, the bill reduces Medicaid funding by $1 trillion over a 10-year period. This will directly impact the over 250,000 residents who rely on Medicaid in the tri-city area. The bill also includes lower reimbursement rates, which could reduce the hours that local hospitals operate or even lead to closures. Similarly, SNAP benefits (also known as “food stamps”) will be reduced by $290 billion over 10 years, resulting in decreased food security for hundreds of local families. Approximately 150,000 Tri-City residents rely on the SNAP program.

The bill also eliminates many clean energy tax credits, which could raise energy costs. This will disproportionately affect lower- and middle-income families, whose energy bills account for a larger percentage of their household income, compared to high-income households. According to one estimate, annual energy costs would rise by $473 for the average household.

The other major component of the bill is tax cuts. The bill permanently extends the 2017 tax cuts and creates new deductions for tips, overtime, and older Americans earning under $75,000. These tax cuts disproportionately target higher income brackets. Low-income households, specifically the bottom 20% of households, are estimated to receive only 1% of the total tax benefits from the bill, while the wealthiest 20% of households gain 70% of the benefits. In the tri-state area, the median household income is about $60,800, most families will not get any significant tax relief from the bill.

• Unemployment rates

• Median household income

• Home prices and rental costs

• Midwest Inflation