WASHINGTON D.C. — House Republicans Thursday narrowly passed the federal ombudsman bill, which includes trillions in tax breaks, spending cuts and stricter requirements for Medicaid and other programs, delivering on President Donald Trump’s promise for “one big beautiful bill” to scale back federal spending.
The president signed the bill on the Fourth of July, as Trump spent Thursday night holding a rally in Iowa.
“There could be no better birthday present for America than the phenomenal victory we achieved just hours ago when Congress passed the ‘one big, beautiful bill’ to ‘Make America Great Again,’” Trump said at a rally on Thursday night.
The bill has been in the works since Trump’s stunning 2024 election victory and when the Republicans gained a majority in both the House of Representatives and the U.S. Senate.
The “big beautiful bill” was not a sure thing, as it was a sweeping move to include several Republican policies, such as deep federal funding cuts to non-military programs, border protection and immigration enforcement, as well as preserving tax cuts in the 2017 Tax Cuts and Jobs Act.
No Democrats voted for the federal spending bill, opposing its deep cuts to Medicaid and Supplemental Nutrition Assistance Program (SNAP) and criticizing that it would add $4 trillion to the national debt in the next 10 years. Two House Republicans voted against the bill.
The funding package is likely to strip health insurance coverage from more than 54,000 Delawareans as well as SNAP benefits for more than 37,000 Delawareans, U.S. Rep. Sarah McBride (D-Del.) said. It would also likely put TidalHealth Nanticoke in Seaford— which just merged with another rural hospital in Maryland— at risk of closure due to the cuts in Medicaid.
“Budgets are moral documents,” McBride said in a prepared statement. “And this one tells working families, veterans, and seniors: you’re on your own.”
The most talked-about aspect of the “one big beautiful bill” in Delaware is the potential impact to the state budget through the scores of federal funding programs the state uses, as well as Medicaid provisions.
Brian Frazee, the President and CEO of the Delaware Healthcare Association, warned that it’s likely that 30,000 Delawareans will become uninsured and several nursing homes, nonprofits that offer care for those with disabilities and other facilities will have to make hard choices in the months ahead.
“Hospitals will undoubtedly face strains to critical resources, overburdening the healthcare workforce, stunting innovation, and risking healthcare access. Hospitals will continue to step up to pick up the pieces of this disastrous policy, but the reality is, healthcare in Delaware will be forever changed,” he said in a prepared statement.
Many U.S. business associations celebrated provisions in the spending bill, namely making several tax provisions important to economic growth permanent.
The American Bankers Association, which represents banks across the country, noted it appreciates the Qualified Business Income deduction, which allows owners of pass-through businesses to potentially deduct up to 20% of their income, as well as immediate expensing for research and development costs as well as an enhanced estate tax exemption.
The “one big beautiful bill” also includes full expensing for capital equipment purchases as well as permanent family and medical leave tax credits. Trump also prioritized a $25,000 tax deduction for servers and bartenders earning tips and a $12,500 tax deduction of overtime pay for hourly earners – both provisions that will be in effect until 2028.
In Delaware, the state economic advisory panel, which sets the spending limit for lawmakers, have raised questions about how the First State will respond if the federal bill comes to pass. Meyer had signed his inaugural budget on Monday, which includes $6.5 billion in spending to several initiatives in education, health care and affordable housing.
It’s possible the Delaware General Assembly would have to reconvene in a special session to revise the Fiscal Year 2026 budget, which includes millions in untouched reserves as well as one-time expenses and grants-in-aid for nonprofits. But there was no official call on Thursday evening to do so.
It’s likely legislators will have to “assess the impact and what could be done on a state level” before acting, according to a House Democrat spokeswoman.
In the meantime, House Speaker Melissa Minor-Brown (D-New Castle) House Majority Leader Kerri Evelyn Harris (D-South Dover) and House Majority Whip Ed Osienski (D-Newark) warned in a joint statement that there would be gaps created from the “Trump Megabill,” and the state cannot fund solutions for them all.
“We will never back down. We will keep fighting relentlessly to protect the safety, health, and well-being of every Delawarean. No matter what challenges arise, we will face them head-on,” the statement read.
