Six Food System Takeaways From The ‘One Big Beautiful Bill’
Key Takeaways
President Trump's One Big Beautiful Bill calls for major changes in federal spending that could ultimately reshape food and health systems.
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5 min read
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investment
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July 11, 2025
10:00 AM
Forbes
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Food & DrinkSix Food System Takeaways From The ‘One Big Beautiful Bill’ByDanielle Nierenberg, Contributor
Forbes contributors publish independent expert analyses and insights
Danielle Nierenberg is a reer and writer on global food systems
AuthorJul 11, 2025, 10:00am EDTWASHINGTON, DC - JULY 04: U
President Donald Trump, joined by Republican lawmakers, signs the
More One, Big Beautiful Bill Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025 in Washington, DC. (Photo by Eric Lee/Getty Images)Getty Images On July 4, U
President Donald Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law
The Act, which is essentially a massive budget bill, calls for major changes in federal spending that could ultimately reshape food and health systems, our apach to climate change, and the well-being of hardworking rural and urban communities
Let’s break down six of the many immediate impacts this Act will have on our food system: 1
Cuts to food and health assistance will make more people hungrier and sicker
The OBBBA enacted the largest spending cuts in history on the Supplemental Nutrition Assistance gram (SNAP) and Medicaid, exceeding US$1 trillion in budget reductions
As a result, in the coming years, 5 million people—1 in every 8 SNAP participants—will lose access to some food relief, and nearly 12 million Americans will lose their health care
The nutrition education gram SNAP-Ed has been defunded entirely
According to a team of health reers at the University of Pennsylvania, the Act’s cuts to SNAP alone could result in more than 93,000 premature deaths between now and 2039
Parts of the food industry could feel a pinch
SNAP accounts for 9 percent of grocery spending, so large corporations could see sales dip especially among packaged food ducts, according to a Wall Street Journal analysis
That said, the Act keeps income taxes low for corporate retailers, which could help their bottom lines amid high food prices
Immigrants, both documented and undocumented, remain at greater risk
Visions in the OBBBA that target immigration will ly have disportionate impacts within the food system
The Act more than triples the budget of Immigration and Customs Enforcement (ICE), with a focus on ramping up detention and deportation of non-citizens
Plus, it revokes SNAP eligibility for some lawful immigrants and levies new taxes on sending money to families abroad, both of which impact immigrants’ access to self-sufficiency through food and restaurateurship
Restaurant workers get a boost—but only some of them, and with conditions
Some advocates of the OBBBA claimed it would enact “no taxes on tips,” which is not precisely true but may still be beneficial for some restaurant workers: Through 2028, tipped workers under certain income limits could deduct up to US$25,000 in tip income from federal income taxes
However, undocumented workers—who collectively paid US$96. 7 billion in federal, state, and local taxes in 2022—are ineligible for this tax deduction
The Act could help industrial farms—but benefits for rural families are less
Aimed at farmers, the OBBBA calls for tax reductions and increased funding for agriculture commodity support grams and crop insurance subsidies
However, these ag grams tend to support large-scale ducers over independent family farms
The Act also creates a US$50 billion fund called the Rural Health Transformation gram that is int to support rural healthcare, but this amount barely offsets one-third of the money Medicaid had once vided
Now, hundreds of struggling rural hospitals that previously relied on Medicaid dollars to stay open are at even greater risk of closing
Additionally, farmers’ incomes are in jeopardy: Data shows that, out of every dollar spent on food at around the country, 25 percent flows back to rural communities—but if SNAP cuts diminish purchasing power, farmers would see less money
Climate-smart initiatives are either on hold, cancelled, or reversed entirely
The OBBBA continues to reflect the shift in climate priorities throughout the Trump-Vance Administration so far: The Act halts more than US$500 billion in sustainability investments from the Inflation Reduction Act, rolls back incentives for wind and solar energy, and phases out tax credits for new electric vehicles
Meanwhile, industries coal, oil and gas will receive tax breaks and access to drill for fossil fuels on previously tected lands
The outcomes of the OBBBA are already reverberating across food and agriculture systems—but so are community-grounded efforts to keep one another nourished and to stand up for our collective well-being
And even more than ever, every food system victory matters
Every successful unionization vote— one recently at Abundance Food Co-op in Rochester, New York—matters
Every gram that connects schoolchildren to farm-grown foods— those in Michigan—matters
Every innovative idea— rethinking corner stores in Pennsylvania or modular hydroponics in Singapore and Boston—matters
These victories are local, but that doesn’t mean they’re small
They all can result in mass change across our food and agriculture systems
It's change that comes incrementally—but this means we can work together to ensure that it's sustainable, long-lasting, deeply rooted change that can't easily be undone
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