What the ‘Big Beautiful Bill’ Means for California

President Trump on Friday signed into law a massive tax and spending package: the so-called “One Big Beautiful Bill,” which delivers sweeping tax breaks for the wealthy while slashing social safety net programs. It cuts nearly $30 billion in Medicaid funding to California, defunds wildfire prevention and, according to Governor Gavin Newsom’s office, puts hundreds of thousands of jobs in the state at risk. The legislation also directs at least $170 billion to immigration detention and border security. Meanwhile, deficit watchers worry about its fiscal impacts. We’ll break down what this bill means for healthcare, immigration, education and everyday Californians like you.

Show Highlights

Tax Changes and Economic Impact

One of the bill’s most touted changes is a major increase to the SALT deduction cap — which limits how much taxpayers can deduct in state and local taxes — raising it from $10,000 to $40,000 for households earning under $500,000. San Francisco Chronicle personal finance columnist Jessica Roy said the change brings real relief to many Californians — but warned against overselling its economic boost. Roy said the economy was supercharged recently not through tax cuts for the wealthy, but through expanded access to SNAP, Medicaid and unemployment — programs that helped the poorest Americans.

McClatchy chief congressional correspondent David Lightman, however, emphasized the role that expansion played in inflation. 

Cuts to Social Safety Net Programs

While the bill doles out tax breaks, it makes sweeping cuts to programs that serve California’s most vulnerable residents. Lightman noted that over 15 million Californians use Medicaid, including two-thirds of residents in Central Valley Rep. David Valadao’s district. 

The bill also reduces SNAP funding — known in California  as CalFresh — with about 5.5 million Californians expected to feel the impact, according to Lightman. A reporter for the Daily Californian, Dylan, called in to share local data: one in four residents in Alameda County report food insecurity, and roughly 175,000 people there rely on SNAP benefits.

Immigration Enforcement Funding Increases

Even as social programs are slashed, the bill directs roughly $150 billion toward immigration enforcement — including $47 billion for border wall construction and $45 billion for detention capacity. 

Los Angeles Times immigration reporter Andrea Castillo said the move makes Immigration and Customs Enforcement, or ICE, the highest-funded law enforcement agency in the federal government. It could expand private detention centers in California despite state opposition. Castillo also noted new  fees for immigration court: For the first time, asylum seekers will be charged a $100 application fee, plus $100 per year their case remains unresolved.

Green Energy and Climate Policies

The legislation undoes many clean energy incentives introduced under the Inflation Reduction Act. Roy noted the elimination of tax credits for electric vehicles, rebates for solar and battery storage and home weatherization support. 

Lightman said that the bill overrides California’s plan to ban the sale of new gas-powered vehicles by 2035.

Higher Education and Student Loans

The bill also reshapes federal student loan programs — especially for graduate and professional students. Roy explained that it caps borrowing limits and eliminates the Grad PLUS loan program, as well as hardship-based deferment options. These changes could make it harder for low-income students to access advanced degrees.

Political Battle and Midterm Elections

As the provisions begin to roll out, both parties are preparing for a fierce political fight heading into 2026. Lightman said Democrats only need a net gain of three seats to flip the House; attack ads are already airing against swing-district Republicans like Valadao. But Lightman cautioned against assuming a single bill will determine the midterms. . 

A caller named Laura said more Americans should take to the streets in protest weekly.

The Bottom Line

With its impacts on healthcare, housing, climate and immigration, the “Big Beautiful Bill” is poised to reshape life in California. While critics warn of pain ahead for low-income communities, Lightman noted that the budget process is far from over — and many provisions won’t kick in until after another round of negotiations. “Even though it looks bleak for Medicaid,” he said, “it’s never over around here.”

This content was edited by the Forum production team but was generated with the help of AI.