When Do the Cuts Hit?
Republicans didn’t just pass the most extreme budget in modern history—they designed it to hide the pain until after the election. This timeline breaks down exactly when the Betrayed for Billionaires Budget guts health care, slashes food assistance, raises energy costs, and burdens working families with red tape and higher bills. Know what’s coming and when below.
Justice
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RECA (Sec. 100201-100203) - Expands and extends the Radiation Exposure Compensation Act to allow New Mexico downwinders, uranium miners who worked until 1990, and qualifying others to apply for RECA compensation.
Health
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Moratorium on Simplified Eligibility (Sec. 71102) - Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Program. The government is barred from enforcing a 2024 CMS rule intended to simplify Medicaid and CHIP application and renewal processes.
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Eligibility redeterminations (Sec. 71107) - Requires states to conduct Medicaid eligibility redeterminations every six months instead of annually for adults enrolled through the ACA Medicaid expansion group. Provides $75 million in implementation funding.
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Provider Taxes (Sec. 71115) - Prohibits states from establishing any new provider taxes or from increasing the rates of existing taxes. States often use hospital provider taxes to finance higher payment rates for hospitals that serve disproportionate numbers of Medicaid or uninsured patients. The new limit applies to taxes on all providers except nursing facilities and intermediate care facilities.
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State directed payments (Sec. 71116) - State-directed payments (SDPs) require managed care organizations (MCOs) to make certain types of payments to health care providers, generally aimed at increasing provider payment rates to increase access to or quality of care. The bill requires future SDPs for hospitals and nursing facilities to be limited to 100% of Medicare rates in expansion states and 110% of Medicare rates in non-expansion states.
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Burdensome paper requirements (Sec. 71119) - Requires individuals to prove that they are working, engaging in community service, or receiving work training for at least 80 hours per month—or that they are enrolled in school part time—unless they qualify for an exemption. Bars individuals who are unable to meet the red tape requirements in Medicaid from accessing subsidized health insurance in the ACA Marketplace.
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Premium tax credits - Fails to extend the enhanced premium tax credits for ACA marketplace coverage which expire at the end of 2025. The expiration of the enhanced tax credits will increase out-of-pocket premiums substantially and likely lead to millions of people dropping their coverage.
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Defunds Planned Parenthood (Sec. 71113) - Blocks Medicaid funding from going to providers like Planned Parenthood–specifically, nonprofit organizations that focus on family planning, provide abortion care outside the narrow Hyde exceptions, and receive over $800,000 in Medicaid reimbursements. This provision leaves more than 1.1 million women without access to needed care like cancer screenings and birth control, risks the closure of 200 health centers, and will cost taxpayers $52 million over 10 years, according to the CBO.
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Effective: Immediately. This will remain in effect for one year, starting from the date this law passed (July 4, 2025).
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Note: As of Monday, July 7, a federal judge temporarily blocked the Planned Parenthood “defund” provision that was signed into law.
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Cost sharing requirements for certain expansion individuals under the Medicaid program (Sec. 71120) - Requires states to impose cost sharing of up to $35 per service on expansion adults who make as little as $1,300 a month; explicitly exempts primary care, mental health, and substance use disorder services from cost sharing, maintains existing exemptions of certain services from cost sharing, and limits cost sharing for prescription drugs to nominal amounts.
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Rural Health Transformation Program (Sec. 71401) - Establishes a rural health transformation program that will provide $50 billion in grants to states between fiscal years 2026 and 2030, to be used for payments to rural health care providers and other purposes. Distributes 50% of payments equally across states with approved applications; the remaining funds will be distributed by CMS based at least in part on states’ rural populations. The National Rural Health Association has said “Even if every single dollar of the new fund went exclusively to rural hospitals, it would not fill even half of the gap in funding created by the One Big Beautiful Bill Act (OBBBA).” The $50 billion in relief funding for rural hospitals over a five-year period does not help reduce the disastrous impacts of the bill’s roughly $1 trillion in Medicaid cuts.
Nutrition
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Re-evaluation of thrifty food plan (Sec. 10101) - Prohibits the Secretary from conducting a reevaluation that increases the cost of the Thrifty Food Plan (TFP), which underpins SNAP benefit levels (does NOT prevent decreases). This results in $37 billion in cuts to nutrition assistance programs, slashing SNAP benefits ($35 billion), Summer-EBT ($1 billion), the Nutrition Assistance Program for Puerto Rico ($1 billion) and TEFAP ($100 million), per CBO.
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Modifications to SNAP Work Requirements for Able-Bodied Adults (Sec. 10102) - Expands the Able-Bodied Adults Without Dependents (ABWAD) time limits to seniors up to the age of 65 and to households with children as young as 14 years old. Eliminates work requirements exemptions for homeless, veterans, and those aging out of foster care and limits geographic-based waivers to states and areas with unemployment of 10% or higher. Expanded SNAP paperwork requirements puts 5 million people, including about 800,000 children and more than 500,000 adults aged 65 or older and adults with disabilities, at risk of losing some or all of their SNAP benefits.
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Matching Funds Requirements (Sec. 10105) - States will have to cover part of SNAP benefit costs, based on how often they make mistakes calculating benefits (i.e., over or underpayments). States with high error rates could face bigger costs, but states with the worst error rates (including New Mexico with an error rate of 14.61) may receive a one-year delay. If a state can’t make up for these massive federal cuts with tax increases or spending cuts elsewhere in its budget, it would have to cut its SNAP program (such as by restricting eligibility or making it harder for people to enroll) or it could opt out of the program altogether, terminating food assistance entirely in the state.
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Administrative cost sharing (Sec. 10106) - Increases state and county SNAP administrative cost share from 50% to 75%. This significant cost-shift will strain already tight state budgets, reduce the ability of agencies to manage the program effectively, and likely result in service delays and staffing reductions.
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National Education and Obesity Prevention Grant Program (Sec. 10107) - Eliminates all SNAP-Ed funding. SNAP-Ed provides free nutrition education, cooking demos, and workshops, plus supports community efforts to improve access to healthy food and active living.
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SNAP Eligibility (Sec. 10108) - Eliminates SNAP eligibility for all “qualified aliens,” including people approved for asylum and certain victims of domestic violence or sex trafficking. Allows people granted Cuban or Haitian entrant status to qualify for SNAP.
Energy
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Residential Energy Efficiency and Clean Energy (Secs. 70505, 70506, and 705078) - Repeals the Energy Efficiency Home Improvement Credit (25C), the Residential Clean Energy Tax Credit (25D), and the New Energy Efficient Home Credit (45L). The repeal of the 25C credit applies to property placed in service after December 31, 2025, and the repeal of the 25D credit applies to expenses incurred after December 31, 2025. Finally, the repeal of the 45L credit applies to qualified homes acquired before June 30, 2026.
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Energy Efficient Commercial Buildings (Sec. 70507) - Eliminate the energy efficiency commercial buildings deduction (179D) for buildings that begin construction after June 30, 2026.
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Electric Vehicles (Secs. 70501 to 70504) - Repeals the electric vehicle (EV) credits attributable to new EVs(30D), previously owned EVs (25E), commercial EVs (45W), as well as the credit for charging infrastructure (30C). The repeal of EV credits would generally be effective for EVs acquired after September 30, 2025, and the repeal for charging infrastructure would apply for property placed in service after June 30, 2026.
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Clean Energy Projects (Secs. 70512 and 70513) - Accelerates the end of tax credits for solar and wind projects (48E and 45Y). Projects that start construction within 12 months of the bill's enactment can still qualify for credits even if they start operation after 2027, creating a buffer period for developers. However, projects that start construction a year after enactment will have to start operations by December 31, 2027, to be eligible for the credits. Additionally, any solar and wind projects that start construction after December 31, 2025, will lose access to these credits if they receive material assistance from Foreign Entities of Concern (FEOC), and this foreign entity restriction also applies to energy storage technology. The FEOC constraints effectively eliminate the tax credits for projects that start construction after December 31, 2025.
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Advanced Manufacturing Production Credit (Sec. 70514). Makes several changes to the Section 45X tax credit that manufacturers can claim for producing clean energy components. Starting in 2027, companies will face new rules when selling components that are built into other components - they can only get the credit if both parts are made in the same facility and at least 65% of the materials come from the U.S. The law also phases out credits for wind energy parts sold after 2027 and for critical minerals produced after 2030, while adding metallurgical coal (used in steelmaking) as a new qualifying material that earns a smaller credit and only until 2029. Companies working with certain foreign entities will lose access to these credits entirely, and the definition of battery modules is expanded to include all the essential equipment needed to make batteries work. The domestic production requirements and FEOC constraints effectively kill the 45X tax credit.
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Hydrogen Tax Credit and Clean Fuel Production Tax Credit (Secs.. 70511 and 70521) - Terminates the clean hydrogen tax credit (45V) for facilities that begin construction after December 31, 2027. The Clean Fuel Production Credit (45Z) for the production of low-carbon transportation fuels produced at a qualifying facility, including hydrogen, would be extended from December 31, 2027, until December 31, 2029, subject to restrictions on foreign-sourced feedstock and FEOC ownership constraints.
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Nuclear Power (Sec. 70510) - Terminates the production credit for nuclear-based electricity produced and sold after December 31, 2032, but disallows the credit when certain FEOC provisions are triggered.
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Carbon Oxide Sequestration (Sec. 70522) - Simplifies the carbon sequestration tax credit (45Q) by setting a single rate of $17 per metric ton for all types of carbon storage, whether companies inject it into oil wells, store it underground, or use it for other purposes, with this rate increasing with inflation after 2026. Direct air capture facilities, which pull carbon directly from the atmosphere, receive a higher rate of $36 per metric ton. These standardized rates apply to facilities that begin operating after July 4, 2025, and, like other credits, companies lose access to this credit if they work with certain prohibited foreign entities.
Education
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Federal Student Loans (Sec. 81001) - Starting in the 2026-2026 school year, Graduate PLUS loans will be discontinued. Instead, graduate students can borrow up to $20,500 annually and $100,000 total for nonprofessional graduate students, unless they’re in a professional program (like law or medicine), where the limit is $50,000 per year and $200,000 total. Parents taking out Parent PLUS loans will be limited to $20,000 per year and $65,000 total for each child. The bill sets lifetime aggregate borrowing limits across undergraduate and graduate programs at $257,000.
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Pell Grant Eligibility (Sec. 83004) - Revises Pell eligibility to exclude students with grants from other federal and non-federal sources that equal or exceed the full cost of attendance. This prevents students who receive New Mexico’s Opportunity Scholarship, from also receiving Pell Grants that cover other critical college costs such as books, housing, and transportation.
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Program Eligibility Based on Earnings (Sec. 84001) - Undergraduate programs lose federal loan eligibility if graduates, for two out of three years, earn less than the median high school graduate in their state. Graduate programs are disqualified if graduates, for two out of three years, earn less than the median bachelor’s degree holder in the same field and state. Institutions must notify students if a program is at risk of losing eligibility. The bill provides an appeals process and pathway to regain eligibility after two years.
Taxes
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No Tax on Tips (Sec. 70201) - Tipped workers may deduct up to $25,000 of qualified tipped income on their federal income taxes. The deduction begins to phase out for tipped workers who earn over $150,000 (or $300,000 if filing a joint return).
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No Tax on Overtime (Sec. 70202) - Workers may deduct up to $12,500 (or $25,000 if filing a joint return) of qualified overtime income on their federal income taxes. The deduction begins to phase out for workers who earn over $150,000 (or $300,000 if filing a joint return).
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No tax on car loan interest (Sec. 70203) - Taxpayers may deduct up to $10,000 of personal car loan interest payments on their federal income taxes. Qualifying cars must be American made. The deduction begins to phase out for workers who earn over $100,000 (or $200,000 if filing a joint return).
Immigration Fees
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SEC. 100003. Employment Authorization Document Fees - Imposes a $550 fee for asylum applicants who file an initial application for employment authorization.
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SEC. 100009. Annual Asylum Fee - Imposes a $100 annual fee on an asylum applicant for each year that their asylum application is pending.
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SEC. 100013. Fees Relating To Applications For Adjustment Of Status - Imposes a $1,500 minimum fee for immigrants who file an application with an immigration court to adjust their status to lawful permanent resident.
Other
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Tribal Adoption Parity (Sec. 70403) - Allows tribes to determine that a child has special needs. Such determination allows an adoptive parent to automatically receive the full adoption tax credit. Prior to this Act, state governments were allowed to make such a determination but tribal governments were not.
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