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Federal budget bill will do major damage to Long Island

Published 7 hours ago5 minute read

President Donald Trump wants to celebrate the Fourth of July by signing the One Big Beautiful Bill, likely to be his administration's signature piece of legislation. It slashes social programs for health care, housing and education, reduces funding for scientific research and would halt progress on the transition to cleaner energy. The bill benefits very affluent Americans at the expense of those who are not millionaires. It increases the national debt by trillions of dollars, burdening future generations.

It's bad for New York state, and Republican House members should vote it down unless significant changes are made. 

The Senate is undermining a victory that blue state House Republicans, led by Long Island's Rep. Nick LaLota, won on partially restoring the deduction for state and local taxes — a key affordability measure for Long Islanders. In his first term, Trump vengefully put a $10,000 lid on what had been an unlimited SALT deduction that had always returned a good chunk of money to local property owners. The House bill allowed for deductions of up to $40,000 but limited those deductions to people with incomes of less than $500,000. That threshold would likely cover most Long Island residents who itemize their deductions, although a return to uncapped deductions would be the fairest approach and was an essential part of the deal when the federal income tax was ratified in 1913.

However, in the latest iteration, the Senate wants the House provisions to expire after five years, at which time the $10,000 cap returns. That's unacceptable. Voters should see through the budgetary flimflam. Any reductions to a permanent $40,000 cap and $500,000 income limit should be rejected. 

Changes to the Supplemental Nutrition Assistance Program, known as SNAP, are extraordinarily worrisome for Long Island, where tens of thousands of households rely on such federal benefits as a critical lifeline, one that helps them avoid terrible choices about what they can afford.

Nearly 200,000 Long Islanders receive SNAP benefits, of whom more than 50,000 are children, according to the state. Many recipients are veterans, seniors, or disabled.

Such massive cuts also would ripple dangerously through the region's economy. The benefits now boost the work of area farmers with additional revenue streams to help them, farmers markets, and other shops, including 758 retailers in Suffolk County and 630 retailers in Nassau that accept SNAP as payment.

Some of the biggest changes will come in health care. Proposed Medicaid cuts have rightfully gotten the lion's share of attention; the House bill would slash $800 billion. There was hope the Senate might provide a counterbalance, but so far deep cuts remain. The final plan may change after Senate parliamentarian rulings, but under many proposals, New York State will not be able to fill the gap. Newly proposed limits to Affordable Care Act coverage add to the list of worries for tens of thousands of Long Islanders.

Among those particularly at risk: temporary workers, refugees, student exchange visitors, those here under Deferred Action for Childhood Arrivals, or DACA, and other noncitizens here legally. More than 35,000 such immigrants on Long Island who are working, studying and have become part of our communities could lose coverage, according to the state. 

Medicaid is a complex behemoth, certainly ripe for careful, thoughtful changes or trims. But sweeping cuts without thought to the consequences are not the answer. And the consequences are many. Health care is one of the region's most significant industries and Long Island's largest employer. Slashing coverage will affect residents' decisions about when, where and how to seek care — and that will reduce demand at our physicians' offices, hospitals, urgent care centers, and other facilities.

Also key: Medicaid is the primary source of coverage for long-term care, including nursing homes. Brutal federal cuts will pass on more of the expense to the states. And while New York covers nursing home care, an untenable cost burden could force state officials to find ways to change reimbursement rates or eligibility requirements, or to limit coverage for other areas of long-term care, like assisted living. That would put our seniors at risk.

Solar and wind power help keep America energy-independent and reduce pollution. Yet the budget bill eliminates rebates and incentives used by millions of homeowners and businesses. That would cripple the solar and wind energy sectors and force a generational shift in the industries with unforeseen consequences.

Energy tax credits in the 2022 Inflation Reduction Act are obliterated in the current budget bill, and solar and wind energy industries will face truncated phaseout timelines, resulting in bankruptcies, job losses, and fewer renewable energy sources.

The nation’s so-called "national energy emergency" is a talking point to distract from the truth: America is a net exporter of fossil fuels, and clean energy has successfully been integrated into the grid.

Rep. Andrew Garbarino, who is leading the fight to protect the renewable energy industry, told the editorial board that phasing out benefits "cuts off far too early for businesses who have made major domestic investments to reap the economic benefits that incentivized them to build here in the first place."

What's the rush? Congressional leaders should not vote until they can return to their districts and answer tough questions on the bill's impact.

That would be a beautiful thing.

are experienced journalists who offer reasoned opinions, based on facts, to encourage informed debate about the issues facing our community.

Members of the editorial board are experienced journalists who offer reasoned opinions, based on facts, to encourage informed debate about the issues facing our community.

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