What Government Affairs Teams Need to Know (and Do) About the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBBA) is now law, and this sweeping legislation demands the attention of government affairs professionals for its realignment of tax policy and federal spending.
The 900-plus-page megabill was passed through the budget reconciliation process, which allows certain fiscal measures to avoid the Senate filibuster and be passed with a simple majority.
The GOP tax and spending bill makes permanent key provisions of the 2017 Tax Cuts and Jobs Act, including lower individual tax rates. The Senate passed the measure 51–50, with Vice President JD Vance casting the tiebreaking vote. The House approved the same bill in a 218–214 vote, reflecting a similar partisan divide. A handful of Republicans in each chamber opposed the bill.
For lobbyists and government affairs professionals, the passage of a sweeping law is just the beginning – the real impact will be determined in the months and years that follow as agencies set spending priorities and write the rules that put policy into practice.
Budgets, grant criteria, and compliance standards crafted in this phase will determine which industries and stakeholders come out ahead. Those who engage early in the regulatory process stand the best chance of shaping outcomes – and avoiding costly surprises once the law is implemented.
What is in the One Big Beautiful Bill Act?
The OBBBA’s most discussed measures span four fronts:
- A permanent extension of the lower individual income tax rates (first enacted in the 2017 Tax Cuts and Jobs Act)
- Cuts to nutrition assistance programs and Medicaid (the largest reduction in the program’s history)
- A phaseout of Biden-era clean energy tax credits
- A boost to border security, making U.S. Immigration and Customs Enforcement (ICE) the most heavily funded federal enforcement agency
The OBBBA cements key provisions of the Tax Cuts and Jobs Act (TCJA) – touted as the key legislative achievement of Trump’s first term. The 2017 framework for individual income taxes is now permanent, including lower individual rates, enhanced deductions, a higher estate and gift tax exemption, and the 20% pass-through deduction.
Business tax breaks for research and development, property depreciation, and interest expenses are also now permanent.
Several elements are shorter-term, requiring Congress to revisit them in the future.
And after pressure from Republicans representing high-tax blue states, the state and local tax (SALT) deduction cap rises to $40,000 for five years, then reverts to the $10,000 cap.
The OBBBA also fulfills several campaign-trail promises with short-term measures, many set to expire after 2028 to limit their cost. These include new deductions for tips, overtime pay, and car loan interest on American-made vehicles, and an additional $6,000 deduction for individuals aged 65 and older. The law also creates a tax-advantaged “Trump Account,” for those born between 2025 and 2028, with a one-time $1,000 government deposit to seed savings.
Who stands to win under the OBBBA’s tax provisions?
Beyond the big-ticket items, OBBBA benefits wide-ranging entities. Here’s who stands to win.
Farm support
The OBBBA folded part of the farm bill reauthorization into the reconciliation package, breaking from the bipartisan tradition of renewing it every five years.
Two commodity support programs, Price Loss Coverage and Agricultural Risk Coverage, now extend through 2031 – beyond the usual five years – with higher reference prices and coverage guarantees.
Plus, U.S. Department of Agriculture conservation, trade promotion, and research programs receive mandatory funding.
However, while easing near-term pressures, folding select farm measures into the measure undercuts momentum for a full farm bill reauthorization. Core provisions are set to expire at year’s end, likely forcing bipartisan negotiations outside reconciliation.
Armed services
The OBBBA provided $150 billion in supplemental defense funding that, when combined with what’s appropriated through spending bills, could support a defense budget of roughly $1 trillion in fiscal 2026. This infusion flows through multiple Pentagon accounts, including $14.7 billion for nuclear weapons (and related Department of Energy programs) and close to $25 billion for the Trump-backed “Golden Dome” missile defense system.
Technology, air and space, transportation
The OBBBA authorizes sizable investments in technology and infrastructure, balancing immediate safety issues with long-term strategic goals. In technology, the Senate’s amendment marathon removed a proposed 10-year moratorium on state-level AI regulation, preserving this oversight.
On the wireless front, the law restores the Federal Communications Commission’s authority (lapsed in 2023) to auction spectrum licenses through 2034, reviving a revenue generator in past reconciliation bills.
The OBBBA also directs the National Telecommunications and Information Administration to identify federal spectrum to repurpose for commercial use, backed by $50 million in funding.
In air and space, the Federal Aviation Administration receives $12.5 billion to modernize air traffic control technology, including $4.8 billion for telecom infrastructure upgrades, following several high-profile near-misses and controller shortages.
The Coast Guard received $24.6 billion for new cutters, aircraft, and facility upgrades; and NASA, $10 billion for lunar and Mars missions – alongside plans to relocate the space shuttle Discovery to Houston.
Energy and fossil fuels
Generally, the law prioritizes fossil fuel development, while renewable energy programs are to be phased out.
Provisions expand drilling on public land, including four onshore lease sales in nine western states, broader access to all leasable lands, and an extension of drilling permits to four years (up from three). Offshore lease sales are also mandated in the renamed “Gulf of America,” Alaska’s Cook Inlet, the National Petroleum Reserve–Alaska, and the Arctic National Wildlife Refuge.
Beyond oil and gas, the law directs the Interior Department to approve qualified coal leasing applications, offer 4 million acres for coal leasing, and increase annual federal timber sales through 2034. To bolster energy capacity, the OBBBA earmarks $1 billion in energy department loans and $389 million to replenish the Strategic Petroleum Reserve, the emergency oil stockpile.
Permitting is also compressed: Federal agencies must complete environmental assessments within six months and full impact statements within a year, provided sponsors cover 125% of anticipated costs. The law also lowers royalty rates on oil, gas, and coal; eliminates royalties on extracted methane; and ends fees for nominating parcels for leasing. Furthermore, companies subject to the 15% corporate alternative minimum tax can now deduct certain drilling expenses.
Homeland Security and immigration
The OBBBA provided more than $132 billion for border security and enforcement. U.S. Customs and Border Protection received $64.7 billion, while Immigration and Customs Enforcement got $45 billion for detention capacity alone.
Among the 41 companies shortlisted for detention contracts, the sum could bring a windfall to several small, family-owned firms. Another $20 billion goes to other DHS border programs.
Manufacturing
In manufacturing, automakers no longer face civil penalties for violations of fleetwide fuel economy standards issued by the National Highway Traffic Safety Administration.
The OBBBA also increases the advanced manufacturing tax credit, including for chipmakers, from 25% to 35%. Manufacturers in critical supply chain sectors may benefit from a $1 billion authorization to fund the Defense Production Act.
Who stands to lose under the OBBBA?
Not all interests benefit under OBBBA. Here’s where the impact hits hardest.
State health care costs
The OBBBA’s health care overhaul is poised to reshape state budgets, forcing governors and legislatures to grapple with steep reductions in federal support and rising costs tied to coverage losses. The Congressional Budget Office projects $1 trillion in federal Medicaid cuts over the next decade – an outsized hit for the 40 expansion states and Washington, D.C., which face 10–21% reductions in federal funding. Even non-expansion states will see declines of 6–11%.
Marketplace provisions will compound the pressure. Stricter eligibility rules and the rollback of premium tax credit enhancements threaten to strip coverage from millions, eroding federal subsidies that flow to states through tax credits and 1332 waivers. That loss of federal dollars could destabilize state reinsurance programs and subsidies designed to blunt premium costs.
Beyond direct funding losses, states face rising uncompensated care burdens – estimated at $204 billion over 10 years – as more residents go uninsured. Hospitals alone could absorb $63 billion in added costs, with ripple effects across local health systems.
At the same time, states must bankroll costly upgrades to eligibility and enrollment systems to comply with OBBBA mandates, while preparing to shoulder new obligations in SNAP starting in 2028. With surpluses dwindling and some states already contending with shortfalls, budget writers will be forced to weigh spending trade-offs in FY 2026 and beyond.
Clean energy and climate programs
The OBBBA overturns key aspects of the Democrats’ 2022 tax, health, and climate law, previously billed as the largest U.S. investment in climate action.
In all, the OBBBA rescinds funds for 25 clean energy and emission-reduction programs at agencies such as the National Park Service and Bureau of Land Management, and the Housing and Urban Development’s Green and Resilient Retrofit Program for multifamily housing. It also raises fees for wind and solar projects on federal lands, delays a methane fee for 10 years, and rescinds funds to encourage methane mitigation and monitoring.
Among clean energy tax credits, solar tax credits expire in 2028 unless projects begin within a year of enactment. Hydropower, nuclear, and geothermal credits phase out after 2033 and end by 2036. Credits for residential energy-efficiency upgrades, and electric vehicles and hybrids, are eliminated. The OBBBA also shortens environmental reviews, reducing public comment periods.
Regulatory agencies
The Consumer Financial Protection Bureau (CFPB) sees its Federal Reserve funding capped at 6.5% of the Fed’s operating expenses – down from 12%. Though steeper House proposals were dropped due to budget rules, the cap reflects a broader effort to curb the agency’s autonomy as it nears its 15th anniversary under Dodd-Frank.
The OBBBA also eliminates the SEC’s Reserve Fund – previously financed in part by registration fees and used for agency projects – with its balance now shifted to the Treasury. The CBO estimates $448 million in savings, with the SEC now more dependent on annual appropriations.
Student loan borrowers
The OBBBA tightens federal student loan rules. Beginning in mid-2026, it ends income-contingent repayment plans. Borrowers can choose from the standard repayment plan or a new “Repayment Assistance Plan,” which sets payments at 1% to 10% of adjusted gross income.
The law also ends PLUS loans and subsidized Stafford loans for graduate and professional students starting in July 2026, while capping the maximum amounts that undergraduate, graduate, and professional students may borrow. Deferments for unemployment and economic hardship sunset for loans disbursed beginning July 2027.
Among Pell Grant changes, the law bars eligibility to borrowers whose student aid index is at least twice the maximum Pell Grant award for the academic year. It also makes students ineligible if their total aid from all sources exceeds their cost of attendance.
The law bars schools from offering direct federal loans if graduates earn less than the median income of 25- to 34-year-olds with no higher education. Finally, the OBBBA delays implementation of Biden-era rules on loan discharges tied to school fraud for loans made before July 2035.
The tech-forward approach to tracking and influencing federal spending
Navigating the federal budget process requires the right tools. With many stakeholders and unpredictable shifts, real-time bill tracking and analysis are essential. It’s also critical to build strong relationships with decision-makers and connect budget legislation to actual agency spend.
Bloomberg Government delivers on all three fronts with an integrated platform with real-time alerts, targeted directories, and budget analysis
1. Alerts and tracking tools provide key insights
The budget appropriations process involves many moving parts, and manual methods can’t keep up. An optimal technology solution that delivers the right information on any device is essential.
Bloomberg Government tools provide real-time alerts on legislation at federal and state levels. For ease of navigation, the platform showcases a centralized interface that lets users track bills, access summaries, monitor appropriations, and explore budget tables.
Relevant features, such as the compare text function, let users spot differences between bill versions, analyze legislation across states, and visualize laws at each stage. With the document search function, users can access Congressional Research Service (CRS) reports, CBO cost estimates, committee reports, congressional press releases, and member memos.
Bloomberg Government also provides real-time access to congressional calendars and session timelines, so users can track meetings, markups, and floor activity. And the transcript news search surfaces verbatim transcripts of hearings, markups, and news events, all updated within hours.
2. Directories to make strategic connections
In advocacy, congressional staffers and agency officials are key connections to make to advocate for funding opportunities. But with high turnover on Capitol Hill, it’s a challenge to stay ahead of who’s coming and going.
Bloomberg Government’s directories simplify outreach. Updated every 24 hours and verified, they list congressional members, staff, and agency officials, and their biographies, contact details, voting records, and committee assignments.
This granular detail provides context to elevate conversations – and strengthen advocacy. With an intuitive platform and exportable lists, the directories are also accessible on any device.
3. Federal Funding Flow to connect legislation to agency spend
Passing a bill only sets topline funding levels; it doesn’t show how the money is dispersed.
Bloomberg Government’s Federal Funding Flow tool shows how appropriated dollars move through the system – with budget requests, congressional appropriations, and spending outcomes detailed on one dashboard. These insights help policy teams engage the right leaders, track historical trends, and understand what funding has been spent.
Our appropriations tracker includes committee-contact details and analysis that explains each step in the appropriations process. Line-item tables show changes to funding levels throughout the budget cycle (with source links for transparency), and the agency-spend table connects appropriations to contract-level data, showing how funds translate into awards.
Federal Funding Flow connects agency budget requests, congressional appropriations, and spending outcomes in one centralized platform. Request a demo.
Don’t miss the window
Influencing federal spending requires the right strategy, tools, and timing. While appropriations often crawl through Congress, the opportunities to influence federal spending can be fleeting. Missteps can cause opportunities to slip by.
Bloomberg Government gives government affairs professionals everything they need to quickly understand, respond to, and shape policy and spending priorities with confidence. Ready to learn more? Request a demo.