Hawkeye Reporter

Iowans are closely watching the progress of the One Big Beautiful Bill as it moves through Congress, according to feedback gathered from county meetings, emails, and phone calls. The bill, which has already passed the House of Representatives, is now under consideration by Senate committees focusing on areas such as agriculture, taxes, immigration, and health care. It is advancing in the Senate using an expedited reconciliation process that requires only a simple majority vote and limits non-budgetary provisions.

Senator Chuck Grassley, a senior member and former chairman of the Senate Finance Committee, stated his involvement in shaping policies related to agriculture, energy, taxes, and health care. "This package is a generational opportunity to prevent the largest tax increase in U.S. history and restore fiscal sanity," said Grassley. He emphasized that voters delivered a mandate for fiscal restraint and government reform during the last election.

On health care issues—particularly Medicaid—Grassley highlighted efforts to protect resources for vulnerable Iowans while reducing wasteful spending. "I’ve been a long-time champion for protecting the Medicaid program for the most vulnerable Iowans," he said. He referenced his past work on legislation such as the Family Opportunity Act and ACE Kids Act aimed at supporting children with complex medical needs and improving maternal and child health.

The Senate version of the bill includes several measures targeting Medicaid program integrity: delaying certain regulations from recent years; halting subsidies for illegal immigrants; enacting work requirements for able-bodied adults with exemptions; preventing coverage across multiple states; removing safe harbor protections for erroneous payments; banning spread pricing by pharmacy benefit managers (PBMs); among others.

Addressing concerns raised about potential cuts to Medicaid beneficiaries, Grassley stated: "Contrary to misinformation campaigns seeking to stop these common-sense reforms from getting to the president’s desk, the Senate bill does not take away Medicaid from those who genuinely need it." He added that reforms would help ensure continued service to intended populations.

On prescription drug costs, Grassley noted: "PBMs can raise prices consumers pay for their medications... I’ve long worked to reduce prescription drug prices and I’m pleased to get this specific reform in the Senate bill."

Regarding tax policy changes within the bill, Grassley pointed out its aim to make permanent provisions from the 2017 tax law—a move designed to avoid what he called a $4 trillion tax hike affecting workers, small businesses, farmers, and families if current laws expire. He argued that allowing expiration would significantly reduce child tax credits and standard deductions while increasing average Iowa family taxes by about $1,400 annually. Additionally, he warned of job losses exceeding 57,000 positions statewide along with more than $5 billion lost in wages if no action is taken.

Instead of higher taxes or reduced reliefs after 2025 when many Tax Cuts and Jobs Act provisions are set to expire (https://www.cbpp.org/research/federal-tax/tax-cuts-and-jobs-act-effects-on-individual-income-taxes-after-2025), Grassley explained that new measures would expand benefits—including enhancements for working families such as expanded child credits; strengthened employer-provided childcare credits; permanent small business deductions; targeted reliefs for tipped workers and gig economy participants; increases in reporting thresholds aimed at reducing paperwork burdens on small businesses (https://www.natlawreview.com/article/new-irs-reporting-threshold-600-form-1099-k-begins-january-1-2023).

He concluded by stating that proposed investment incentives—like full expensing options—would support factories and local economies throughout Iowa.