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Trump’s New Law Cripples Black Families

July 8, 2025

The "One Big Beautiful Bill" signed by President Trump on July 4, praised by Republican Senator Tim Scott as promoting fiscal responsibility and opportunity, is being heavily criticized by equity advocates as harmful to Black communities and working Americans. While Republicans frame the legislation as beneficial for American families, Democratic leaders like House Minority Leader Hakeem Jeffries characterize it as rewarding billionaires at the expense of everyday citizens. According to independent analyses, the law will significantly increase the federal deficit through permanent corporate tax cuts while providing only temporary benefits to middle-income households.

Who is affected

  • Black communities and families
  • Middle-income households
  • Low-income children and students in public schools
  • The wealthiest 1% of households (who will receive the majority of tax benefits)
  • 17 million people who will reportedly lose healthcare
  • Recipients of Medicaid, SNAP, and housing assistance programs
  • Long-time residents and small businesses in neighborhoods with Opportunity Zones

What action is being taken

  • The "One Big Beautiful Bill" is being implemented after being signed into law by President Trump
  • Permanent corporate tax cuts and expanded defense spending are being enacted
  • The Opportunity Zone program is being permanently expanded
  • A new permanent school choice tax credit is being established
  • Section 899 (a tax provision imposing penalties on certain foreign-owned corporations) is being repealed

Why it matters

  • The law is projected to add trillions to the federal deficit over the next decade
  • It may trigger future cuts to essential programs like Medicaid, SNAP, and housing assistance
  • The wealthiest 1% will receive most tax benefits (averaging $60,000 per year) while middle-income households get only temporary, modest reductions
  • According to Jeffries, more than 17 million people will lose healthcare, potentially resulting in deaths
  • Programs like Opportunity Zones have historically accelerated gentrification rather than reducing poverty
  • The school choice tax credit could divert funding from public schools, potentially deepening educational disparities

What's next

  • No explicit next steps stated in the article

Read full article from source: The Washington Informer