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By Congressman Tim Walberg (MI-05)

For far too long, our nation has dealt with reckless spending that has driven the United States into a fiscal crisis. The federal government currently has over $36 trillion in debt, with debt continuing to accrue each day.

In November, the American people made it clear that we must rein in out-of-control government spending through budgetary reforms, reducing the tax burden, and getting rid of government waste. After experiencing runaway inflation year after year, the American people gave us a mandate to alleviate the resulting financial burdens.

Since then, House Republicans have been working behind the scenes to create a comprehensive package that provides relief for families, workers, and small businesses. In April, the House and Senate agreed on a budget resolution that included reconciliation instructions for specific committees.

Under my leadership as Chair, the Education and Workforce Committee was instructed to identify at least $330 billion in savings. The Student Success and Taxpayer Savings Plan is estimated to produce $349.1 billion in savings while bringing much-needed reform in three areas: simplified loan repayment, streamlined student loan options, and accountability for students and taxpayers. Together, these reforms will provide economic mobility for our students and families.

The One Big Beautiful Bill Act represents the culmination of each instructed committee’s plan to eliminate waste, fraud, and abuse in Washington and make vital investments in our communities. In total, the bill would provide over $1.6 billion in savings, allowing the federal government to be better stewards of American tax dollars and put us back on the path to fiscal prosperity.

The cornerstone of the package is the permanent expansion of the Tax Cuts and Jobs Act of 2017, which revitalized our economy, unleashing unprecedented job growth and higher wages for working families. Two years after being signed into law, real median household income increased by $5,000 and real wages rose by 4.9%, allowing families to pocket more of their hard-earned money. The reforms also incentivized businesses to invest more in the U.S., ending the decades-long trend of U.S. companies shipping operations overseas.

If these critical provisions were to expire, residents of Michigan’s 5th Congressional District would see a 27% tax hike. This means that a middle-income family of 4 in the district would see a $1,240 tax increase, equating to about 6 weeks’ worth of groceries.

An estimated 33,380 small businesses in MI-05 would also be hit with a 43.4% tax rate if these provisions expire, creating uncertainty for business owners and their workers. By making the tax cuts permanent for these mom-and-pop shops, we can provide these employers with stability, incentivizing them to invest in their businesses and workers. 

The package also includes critical priorities to deliver on the commitment made to American workers. American workers across numerous industries depend on tipped wages to support their families.  The “No Tax on Tips” policy in the bill will ensure that these workers can keep more of their hard-earned money and boost the economy. Similarly, “No Tax on Overtime” will allow hardworking Americans who put in long hours to keep more of their earnings. These commonsense policies will put more money back in workers’ pockets, providing relief.

Many have alleged that this bill would cut Medicaid, a program that serves the most vulnerable people in our community. However, these claims are divorced from reality, as the package would strengthen Medicaid for children, expectant mothers, individuals with disabilities, and the elderly, just like the program was intended. House Republicans want to ensure that the estimated 1.4 million illegal immigrants, the 4.8 million able-bodied adults choosing not to work, and the 1.2 million individuals who are ineligible for the program but are currently enrolled aren’t draining the already-burdened system. By protecting Medicaid from this waste, fraud, and abuse of taxpayer dollars, we can secure and sustain the program for those it was intended to serve for generations to come.

Hardworking Americans deserve to keep more of their hard-earned dollars and deserve policies that lower prices and strengthen our economy. I urge the Senate to follow the House’s lead and pass the One Big Beautiful Bill Act, which represents a generational opportunity to restore fiscal sanity, invest in our communities, and usher in a new Golden Age in America.