by Jeffrey McKinney
May 30, 2025
An estimated 55% of 18.5 million Black households could be hit hard by roposed cuts big beautiful bill..
Scores of Black Americans most likely won’t find much pretty about President Donald Trump’s new budget bill, as they could be walloped financially if it becomes law.
Formally called the “One, Big, Beautiful Bill,” the 2025 legislation calls for an extensive multi-trillion-dollar bundle of tax cuts and spending rollbacks that could be hideous for Black people.
Consider that an estimated 55% of 18.5 million Black households — mainly those in the lowest income brackets—are set to face devastating losses because of proposed cuts in food and rental assistance, tax credits, and basic services.
With that, the bill the U.S. House of Representatives passed May 22 is far from ravishing. It could bring total projected losses of $18.9 billion for Black people, according to a fresh analysis by Creative Investment Research. Some of that probe was calculated with findings from the impartial Wharton’s Budget Model.
The GOP-led Senate is expected to vote soon on the 2025 bill, which is likely to return with revisions.
William Michael Cunningham, an economist and owner of Creative Investment Research, told BLACK ENTERPRISE that the losses are deliberate. He stressed that they consist of redistributing income upward to the richest Americans. He reported that it includes a $390,000 annual unexpected gain for the top 1%, decisively broadening the racial wealth gap.
“The $19 billion reflects cuts to critical programs that Black people depend on.”
Among the largest blows for Black Americans as the 1,000-plus page bill stands now could stem from several areas. For instance, income cuts are targeted at them, tied to less funding for Medicaid, cutbacks in the Supplemental Nutrition Assistance Program (SNAP), a reduction in housing assistance, and few public sector jobs for those individuals.
The Congressional Budget Office (CBO) projects the bill will boost the nation’s debt by $2.3 trillion over 10 years. As such, the nonpartisan agency declares it will spark around $500 billion in Medicare cuts beginning next year. And Blacks with lower incomes could be among those hit the hardest. In general, Blacks account for roughly 20% of Medicare participants.
Observers report that the CBO’s debt estimate primarily relates to extensions of Trump’s 2017 tax cuts and current expenses that exceed the savings.
Based on the Wharton Budget Model as of May 20, Cunningham says there could be a regressive distribution impact, as 20% of Black individuals earning $17,000 or less will see a nearly 14% drop in after-tax and transfer income, equating to an average loss of $940 per person. He says Blacks making $17K to $51K could realize a 1.3% decline, averaging a loss of $580 each.
Furthermore, Cunningham notes that U.S. Census data and Pew Research indicate that over 55% of Black households fall into the first or second quintile.
“Given the elevated percentage of Black households in the lower-income categories, this budget bill, if passed, will have an immediate and negative economic impact.”
More specifically, the bill reportedly aims to trim federal spending on SNAP by $267 billion over a decade by applying several measures. Though SNAP supposedly assists over 40 million people, including helping them buy groceries, the proposed changes could hurt people, including Black folks, by reducing eligibility, moving program costs to states, and deterring future benefit hikes.
Simultaneously, White House officials have stated that passing the bill would be fiscally responsible, with some even claiming it will reduce the deficit and save $1.6 trillion. Check out a list here from the White House that cites factors why the bill must become law.
Another potential fallout: The bill could thump Black women hard as it would withdraw funding for Planned Parenthood for America. That is potentially a big deal as reputedly some 50% of Black women depend on that support for their reproductive health.
Cunningham concluded, “This reduction in reproductive health support, combined with a surge in unemployment among Black women in April, points to a future crisis for the Black community.”
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