Congress passed a federal budget bill in July 2025 that makes sweeping changes to the tax code and federal spending priorities. The bill includes significant tax cuts for corporations and high-income individuals, along with deep reductions in funding for programs that serve working families, seniors, and vulnerable communities.

Key Provisions Include:

Deep cuts to Medicaid, including new restrictions that could result in millions of people losing coverage or facing barriers to care.

Harnett County hospitals rely heavily on Medicaid funding, and experts warn these cuts will likely lead to hospital closures, staff layoffs, and cuts to emergency services.
Tighter eligibility rules for SNAP (Supplemental Nutrition Assistance Program), which could remove food assistance from thousands of households.

 

Around 21,668 residents (16%) of Harnett County, your neighbors, were estimated to be receiving SNAP benefits as of 2022.

 
Reduced funding for public education, including cuts to early childhood programs and school nutrition services.

North Carolina schools collectively could lose over $3 billion in federal K‑12 funding this year, which represents about 11 % of the state’s education budget.

Rural and high-need districts—like those near Harnett—depend heavily on Title I, Title II, and afterschool program grants, some facing cuts up to 30 %.

 
Rollbacks of clean energy investments and environmental protections, affecting both job growth and climate goals.

Sunset of federal subsidies will likely result in higher electricity bills nationwide, including here. Utility and business groups warn that removing these incentives will push up energy price.

Clean energy supported more than 17,000 rural jobs in North Carolina before these rollbacks.

 
New limits on federal housing assistance, making it harder for low-income families to find or keep stable housing

Hundreds of low-income households in Harnett County rely on voucher and public housing programs, but no new applications are being accepted. The demand far exceeds supply, leaving many Harnett families unserved.

Cuts to federal housing aid would worsen an already crisis-level lack of affordable rentals.

 

 

The bill also includes a provision to eliminate federal income tax on tips. But be sure to read the fine print:

  • Applies only to cash tips, up to $25,000 per year

  • Phases out if income exceeds $150,000 (single) / $300,000 (joint)

  • Workers must still report all tips, and income taxes will be withheld — refunds come when filing

  • Payroll taxes (Social Security & Medicare) still apply

  • Expires after 2028, unlike permanent corporate tax cuts

 

Supporters of the budget bill argue that it promotes economic growth and reduces government spending. These claims rely on long-term projections, trickle-down assumptions, and selective framing.

The Reality

According to the Congressional Budget Office, the budget bill is projected to increase the federal deficit by approximately $3.3 to $3.4 trillion over the next decade. Much of the added debt comes from lost revenue due to tax cuts for the wealthiest individuals and large corporations.

 

Know How Your Representatives Voted

U.S. House of Representatives:
All 10 Republican members of the NC delegation voted in favor of the bill.
All 4 Democratic members voted against it.

REPRESENTATIVE PARTY DISTRICT VOTE
Don Davis Democrat NC-1 No
Deborah Ross Democrat NC-2 No
Valerie Foushee Democrat NC-4 No
Kathy Manning Democrat NC-6 No
Greg Manning Republican NC-3 Yes
Virginia Foxx Republican NC-5 Yes
David Rouzer Republican NC-7 Yes
Richard Hudson Republican NC-8 Yes
Dan Biship Republican NC-9 Yes
Patrick McHenry Republican NC-10 Yes
Chuck Edwards Republican NC-11 Yes
Alma Adams Democrat NC-12 No
Brad Knott Republican NC-13 (Includes Harnett County) Yes

U.S. Senate

  • Sen. Ted Budd (R) voted yes on the bill.
  • Sen. Thom Tillis (R) voted no, citing concerns over Medicaid cuts and the impact on rural healthcare

Senate Amendments: What Was Proposed and What Happened

During a marathon session known as a "vote-a-rama," Senators proposed more than 40 amendments to the budget bill. Most were rejected. Only a few passed, and many were symbolic.

 

Amendments That Passed:

Proposed Amendment Notes

Remove AI Regulation Ban

Proposed by Sen. Marsha Blackburn (R-TN)

The original bill banned states from creating new regulations on artificial intelligence for 10 years.

This amendment removed that ban, restoring state authority.

Reduce Unemployment Benefits for Millionaires

Proposed by Sen. Joni Ernst (R-IA).

 

Blocks people with incomes over $1 million from collecting full unemployment benefits.

Estimated to save around $100 million.

 

 

 

Amendments That Were Rejected

Proposed Amendment Notes

Surtax on Ultra-Wealthy Incomes

Proposed by Sen. Susan Collins (R-ME).

Would have raised taxes on individuals making over $25 million annually to fund rural hospitals.

Defeated in a 22–78 vote.
Protect Medicaid and SNAP

Democratic amendments aimed to block or roll back cuts to healthcare and food assistance.

All were rejected by the Republican majority.
Reinstate Clean Energy Incentives

Proposed restoring tax credits for solar, wind, and electric vehicles.

Failed along party lines.
Establish Federal Protections for Reproductive Healthcare

Proposed legal protections for access to contraception and emergency abortion care.

Blocked by Republican opposition.

 
Delay or Weaken Medicaid Work Requirements

Democrats proposed delaying or softening new national work requirements for Medicaid eligibility.

All related amendments were rejected.