How Trump’s Spending Bill Impacts Black Americans Most

By Phenix S. Halley

With all the talks about President Donald Trump’s “Big, Beautiful Bill Act,” it’s time we take a deep dive into what’s really at stake for Black Americans. The Republican-led spending act is one step closer to reaching the finish line after a tie breaking vote in the Senate passed the legislation back to the House of Representatives for final approval.

After that, it’s headed to Trump’s desk for his signature. But although he boasts the nearly 1,000-page long bill with pride, dozens of revisions, bipartisan pushback and months of deliberation should have folks on edge. With its hidden provisions and bold attacks to Medicaid and Pell Grant recipients, here’s everything you need to know before it’s way too late.

Tax Cuts Will Hurt Black Americans

At the center of the bill is promised tax cuts for the wealthy. As the wealth gap in America continues to grow, Trump’s tax cuts prove to be another handout for the richest Americans—most of whom are white, according to data from the Pew Research Center. Consequently, these cuts will increase the racial divide in the country. A 2024 study conducted by the Institute on Taxation and Economic Policy found corporate tax cuts disproportionately benefit white households because white people disproportionately own corporate stocks and bonds, unlike Black households.

Trump Goes Back on Medicaid Promise

Remember when Trump said he wouldn’t cut Medicaid? Well, guess what his bill proposes to do… that’s right! Hundreds of thousands of Americans on Medicaid are at risk if the bill reaches Trump’s desk. In the fine print, Republicans want to put stricter regulations on who qualifies for Medicaid and for how long. There’s also a proposed $35 co-payment to patients using Medicaid services. Black Americans made up 21 percent of Americans on Medicaid in 2020, according to the Assistant Secretary for Planning and Evaluation (ASPE). So with cuts to Medicaid, there’s no question if lower class Black Americans will suffer greatly.

Pell Grant Recipients in Critical Danger

Even before the bill, Trump was in talks of completely dismantling the Department of Education (DOE), sending billions of dollars supporting American students up in the air. The DOE is alive–although it’s barely holding on– but that’s not stopping Republicans from taking away $2.7 million in funding through this bill. Interestingly enough, now is when American students need it the most. About 60 percent of Black college students are Pell recipients, according to The Postsecondary National Policy Institute. Lawmakers also proposed increasing the number of credits Pell recipients must take on every semester. This means full-time working students might also have to increase their educational workload, and they still might suffer from financial cuts.

Adding an Asylum Fee

For the first time in American history, the GOP-led bill wants folks seeking asylum in the country to pay up… big time. Originally, the House wanted migrants wishing for sanctuary to cough up $1,000 to come to America. The Senate ruled out the $1,000 fee and other fees on diversity immigrant visas. Now, the recent revision of the bill includes a $100 minimum fee. This means for folks fleeing their country because of war, terrorism, abuse, violence or any other struggle, they have to open up their wallets first. This will likely impact migrants from poorer, more corrupt nations in the Middle East, Africa and South America.

‘Restriction on Enforcement’

If you thought Trump was getting away with too much in the courts now, just wait until the final bill reaches his desk. On page 544 of the bill, a hidden provision called the “Restriction on Enforcement” aims to upend the checks and balances system officially. SEC. 70302 reads:

“No court of the United States may enforce a con21 tempt citation for failure to comply with an injunction or temporary restraining order if no security was given when the injunction or order was issued pursuant to Federal Rule of Civil Procedure 65(c), whether issued prior to, on, or subsequent to the date of enactment of this section. make it harder for U.S. judges to hold the president accountable.”

In short terms, this would mean more restrictions on judges pushing back on Trump’s orders. The administration has been sued, blocked and threatened with contempt in court by judges fearing Trump’s orders are unconstitutional. If the bill passes, this small section would cause big issues for judges fighting against Trump’s deportation and anti-DEI agendas.

How Climate Change and Race Are Connected

LAKE LURE, NORTH CAROLINA – MARCH 24: Remnants of the Lake Lure Flowering Bridge are seen along the Broad River in a landscape scarred by Hurricane Helene on March 24, 2025 in Lake Lure, North Carolina. Nearly six months after the historic storm, communities in western North Carolina continue the recovery process. (Photo by Sean Rayford/Getty Images)

Climate change has taken a back burner to Trump’s immigration agenda, but this proposed bill also rolls back several Biden-era initiatives pushing for clean energy. In the end, the goal is to make clean energy development more difficult and expensive while cutting a break to raw material development. And as the racial gap widens, Black communities will continue to be devastated by harsh weather conditions. Black Americans are at greater risk of experiencing natural disasters because of concentrated populations in extreme weather environments, like in Black cities like St. Louis and Houston, according to McKinsey Institute for Economic Mobility.

As it stands now, the $2,000 credit is set to return to $1,000 in 2026. The Senate version of the bill aims to make a $200 increase to the credit. The House version reverts the increase back to $2,000 after 2028. The GOP is calling this a win for American families, but let’s not forget former Vice President Kamala Harris proposed a $6,000 child tax credit for families, which had families even more excited.

Attacks to Reproductive Rights

It wasn’t enough for the Supreme Court to reverse the Roe v. Wade decision in 2022. Now, stitched in the Republican bill is a ban on Obamacare insurance plans from covering abortion care in several states, according to the National Women’s Law Center. Federal funding is already banned for abortions, but this bill takes things one step further by punishing insurance companies from funding health costs for their patients. Essentially, Trump is telling insurance companies that if they help cover abortions, their federal funding will be totally stripped. But because the issue is secretly woven into the almost 1,000-page legislation, most folks won’t know until it’s too late.

Cuts to Food Stamps

SKOKIE, IL – JUNE 24: Older, traditional food stamps are displayed June 24, 2004 at an Illinois Department of Human Services office in Skokie, Illinois. Agriculture Secretary Ann M. Veneman has announced all 50 states and the U.S. territories now provide Food Stamp Program benefits with EBT (Electronic Benefits Transfer) cards instead of the traditional paper coupon stamps. (Photo by Tim Boyle/Getty Images)

Along with cuts to Medicaid, the bill will also restrict food stamps. The Supplemental Nutrition Assistance Program (SNAP) will be cut by 30 percent, according to the bill. In 2023, about 27 percent of SNAP recipients were Black, PEW Research reported. Ty Jones Cox, the vice president for food assistance policy at the Center on Budget and Policy Priorities, said this will be the “biggest cut in the program’s history,” according to CNBC.

WASHINGTON, DC – JUNE 10: Protesters denounce the ongoing raids and deportations by U.S. Immigration and Customs Enforcement (ICE) during a demonstration in Columbia Heights on June 10, 2025 in Washington, DC. The protest is one of many cropping up around the country as the Trump administration pushes to increase apprehensions of immigrants, including those appearing at scheduled procedural hearings while working through the immigration process. (Photo by Tasos Katopodis/Getty Images)

To be expected, the recent revision of the bill includes $350 billion for Trump’s border agenda, including $46 billion for the southern border wall and $45 billion for 100,000 migrant detention facility beds. According to the Hill, support for Trump’s deportations is steadily declining, as more and more questionable cases– some involving U.S. citizens, asylum seekers, cancer patients and green card holders– continue to make national news. Most recently, a Black Texas man born on a U.S. army base was deported to Jamaica after concerns about his citizenship were raised.

AI Regulation in Big, Beautiful Bill Act

Artificial intelligence is clearly growing rapidly and unexpectedly, and the Trump administration is offering scary regulations– or lack there of– to AI. One provision that went over a lot of folks’ heads aims to ban state regulation of AI. Even Republicans like Ga. Rep. Marjorie Taylor Greene came out saying the provision violates states’ rights. This was of course after she voted to pass the bill to the Senate last month, admitting she didn’t read that part. But despite her sounding the alarm now, it’s too late for anything to seriously be done. She did promise, however, to continue speaking up against the provision… but once again, how much will that really do now?

Trillions to the National Debt

A large issue several Republicans– including Elon Musk– raised is just how much money this “beautiful” bill will cost the nation. An estimated $3 to $4 trillion will be added to the national debt, which already sits at $36 trillion and counting. And you know who will suffer the most? The younger generation of Americans who will have to pay up through increased interest payments to the government, according to an analysis by the Center for a Responsible Federal Budget. This means higher taxes, fewer government programs and angrier– and poorer– American citizens. But by the time these effects will be felt, most of the current lawmakers will be gone… Ain’t that something??

Trump’s Promised ‘No Tax on Tips’

For the 2.5 percent of Americans in the tipped workforce, there’s good news! Trump’s campaign promise to not tax tips and overtime hours could be fulfilled, but here’s the catch: The tax exemption would only apply to federal income taxes. This means workers still have to pay Social Security and Medicare taxes in addition to any state and local taxes. Although it’s a small win for Trump supporters, it’s important to note that nearly half of tipped workers already don’t make enough to pay federal income tax in the first place, according to an analysis by the Yale Budget Lab. So the amount of folks who will actually benefit from Trump’s plan will be greatly limited.