Republican lawmakers in Washington are working on a new national tax and budget plan, nicknamed the “Big, Beautiful Bill.” Backed by former President Donald Trump and leaders in the U.S. House, the proposal aims to extend past tax cuts, eliminate taxes on tips and overtime, increase defense spending, and reduce overall federal spending by as much as $1.5 trillion.
Supporters believe the bill would help the economy by lowering taxes and encouraging investment. They say it allows people to keep more of their income, especially workers who rely on tips or work extra hours. The bill also raises the federal debt ceiling, giving the government room to borrow more while funding military and border priorities.
Opponents argue that the tax cuts could come at a high cost. To offset the lost revenue, the plan includes deep spending cuts, which may affect programs like Medicaid, food assistance, and education funding. These are services many families depend on—especially in cities like Lorain.
Policy experts say Ohio receives more federal dollars than it sends in taxes. Cutting that support could mean fewer resources for local governments, forcing cities to either raise local taxes or cut services. In Lorain, where many households rely on public programs and affordable healthcare, even small reductions in funding could make a difference.
Some community advocates also worry the proposed tax cuts would mostly benefit higher-income earners, while middle- and lower-income families may face increased financial strain. These families often see less relief from federal tax changes but are hit harder if public programs are reduced or eliminated.
The House has approved a budget framework that supports the bill’s direction, but the legislation is still being debated. It will need to pass the Senate and be signed into law, and changes are likely along the way.
For Lorain, the outcome could shape everything from access to healthcare and food programs to school funding and city services. Residents and local officials are watching closely to see how the bill evolves and what it will mean for their community.