Money Watch•2 MIN READ

The OBBBA Added $3.9 Trillion to the National Debt While Cutting More Than $1 Trillion From Health Programs

Laura Bennett

Updated Jun 29, 2026

The One Big Beautiful Bill Act permanently extended the 2017 Trump tax cuts, added $3.9 trillion to the national debt over the next decade, and simultaneously cut more than $1 trillion from Medicaid and hundreds of billions from SNAP - the largest combined safety net reduction in modern American history.

What You Should Know

The Congressional Budget Office confirmed both figures: the OBBBA will add more than $3.9 trillion to the national debt, and it cut approximately $1 trillion from Medicaid alone, along with $187 billion from SNAP over 10 years. The law permanently extends individual tax rates from 2017, makes the tip and overtime tax exemptions permanent, and raises the estate tax exemption threshold to protect inheritances valued up to $15 million.

The Senate passed the bill 51-50, with Vice President Vance casting the tie-breaking vote. Three Republican senators voted against it: Thom Tillis, Susan Collins, and Rand Paul, with Tillis and Collins specifically citing Medicaid impacts in their states.

The Money Trail

The structure of the OBBBA reflects a direct financial transfer: safety net funding that had gone to low-income households for healthcare and food is being redirected to fund permanent tax cuts primarily benefiting higher-income households and businesses. The Tax Policy Center found that the bill’s tax benefits are heavily concentrated at the top of the income distribution.

The OBBBA also authorized $150 billion in new military spending, including $29 billion for shipbuilding, $25 billion for the ‘Golden Dome’ missile defense system, and $16 billion for AI and drone technology - military investments funded in part by cuts to domestic health programs.

The Receipts

The Congressional Budget Office confirmed both figures: the OBBBA cut approximately $1.06 trillion from Medicaid alone, according to AHA News’ reporting of the CBO’s official score, along with $187 billion from SNAP over 10 years. The Committee for a Responsible Federal Budget estimated the law would increase the federal debt by more than $3.9 trillion through 2034, a figure independently confirmed by FactCheck.org’s review of competing deficit estimates.

What Happens Next

The OBBBA’s implementation continues through multiple phase-in timelines running through 2028 and 2034. States will feel the full impact of the Medicaid and SNAP cost shifts over the next two years. The law’s expiration of certain energy tax credits is already affecting clean energy investment and employment in multiple states.

References: Time | NBC News