Webinar: Understanding Impacts and Strategic Opportunities of the OBBB
The recently passed One Big Beautiful Bill (OBBB) is reshaping where federal dollars are distributed, from infrastructure and energy to education and community development. While the bill introduces exciting new opportunities for some, it also brings significant changes that may limit access or shift priorities for others.
This collaborative session, hosted by Arlington Consulting Group and GrantExec, is designed to help contractors, nonprofits, and public sector leaders understand what the bill actually includes—and how to navigate the new funding landscape it creates.
What You’ll Learn:
The details of the OBBB and its major provisions
Key federal agencies and areas of focus
Targeted funding opportunities on the horizon
Grant strategy guidance for affected nonprofits and grantseekers
Who is This Session Intended For?
Contractors interested in pursuing new federal or state projects
Nonprofits looking to align with updated grant priorities
Local agencies and institutions navigating shifts in funding eligibility
Organizations looking to better understand the changing funding environment
Watch this timely session and take the next step in understanding what the OBBB means for your organization.
Watch our webinar from July 24, 2025 in partnership with GrantExec
Main Takeaways
The "One Big Beautiful Bill" (OBBB) represents President Trump's signature domestic legislative achievement of his second term. Narrowly passed through Congress, navigating extremely slim majorities in both the House and Senate, Trump successfully pushed the bill through intense negotiations and signed it into law symbolically on July 4th. Structured strategically as a budget reconciliation package—requiring only a simple majority in the Senate—this sweeping 870-page legislation is among the most consequential in recent congressional history, impacting virtually every American household, industry, and state government.
Key Tax and Spending Provisions
The OBBB delivers tax cuts totaling approximately $4.5 trillion, primarily achieved by extending the $3.8 trillion in individual and corporate tax reductions enacted during Trump's first term, previously set to expire in 2025.
Additionally, the bill provides $379 billion in new civilian and defense spending beyond annual appropriations, primarily allocated during Trump's second term, creating significant opportunities for federal contractors. Major agency funding increases include:
Department of Homeland Security (DHS): $190 billion for immigration enforcement, border infrastructure (including $46.5 billion for border wall construction and $45 billion for detention facilities), and substantial technology upgrades.
Department of Defense (DoD): $152 billion focusing on modernization, missile defense ("Golden Dome" initiative), cybersecurity, innovation, and readiness.
FAA: $12.5 billion dedicated to urgently needed air traffic control modernization.
NASA: $10 billion for Artemis lunar missions, Mars exploration, and space communications.
Department of Justice (Bureau of Prisons): $4.5 billion to expand capacity and modernize critical infrastructure.
Significant Cuts to Social Programs and Regulatory Rollbacks
To partially offset these increases, the OBBB imposes deep cuts to social programs—totaling approximately $1.3 trillion over the next decade. Notably, Medicaid will see a $1.03 trillion reduction (approximately 15%), while SNAP, the federal food assistance program, will experience a $186 billion cut. New stringent work requirements, administrative burdens, and enhanced eligibility verification (with Medicaid eligibility checks now every six months instead of annually) will severely disrupt coverage. The Congressional Budget Office (CBO) estimates roughly 10 million Americans will become uninsured by 2034, with another 3 million losing SNAP benefits due to these changes.
Another significant source of cost reduction involves rolling back approximately $540 billion in green-energy subsidies enacted by President Biden’s Inflation Reduction Act (IRA). This rollback ends incentives for wind, solar, electric vehicles, and other clean-energy initiatives. Projects must now begin construction within one year to retain any existing tax credits—a challenging timeline given current permitting processes. Additionally, stringent student loan reforms eliminate income-driven repayment plans and tighten eligibility rules, imposing additional financial pressures on borrowers.
Impact on States and Rural Healthcare Providers
State governments will face significant disruptions due to reductions in Medicaid and SNAP funding, compounded by complex new administrative requirements. Historical precedent in states such as Georgia and Arkansas suggests that stringent work requirement implementations often fail, primarily due to administrative complexity and excessive paperwork burdens, which can unintentionally disenroll eligible recipients.
Rural hospitals face substantial uncertainty. Before OBBB’s passage, approximately one-third (over 700 hospitals) were already financially at risk, with more than 300 hospitals facing immediate closure threats. Although the bill establishes a $50 billion Rural Health Transformation Fund, it will only partially mitigate the extensive damage inflicted by the broader Medicaid cuts, forcing states and hospital administrators into tough resource allocation decisions.
Fiscal and Economic Outlook: Debt and Deficit Concerns
From a fiscal perspective, OBBB significantly worsens the U.S. debt trajectory. The bill raises the debt ceiling by $5 trillion to $41 trillion, with heavily front-loaded expenditures and delayed savings, causing a projected $630 billion deficit spike in 2027 alone. According to the CBO, OBBB will add approximately $3.4 trillion to the federal deficit over the next decade (roughly $4.1 trillion with interest).
Economist Ray Dalio summarizes the severity clearly:
“The debt, currently about six times annual federal revenue (100% of GDP or approximately $230,000 per American family), will rise over the next ten years to about 7.5 times annual revenue, reaching 130% of GDP—or approximately $425,000 per American family.”
This historic level of debt poses significant fiscal challenges for future administrations. Notably, Social Security and Medicare trust funds are projected to be depleted by 2032, automatically triggering substantial benefit reductions, as incoming tax revenues will cover only about 77% of Social Security and 89% of Medicare commitments. Combined with a rapidly aging population and soaring healthcare costs, annual spending on Social Security alone is projected to increase from $1.5 trillion today to $2.5 trillion by 2034; expenditures for Medicare and Medicaid are expected to rise from $1.6 trillion currently to approximately $2.8 trillion by 2034.
Strategic Recommendations for Stakeholders:
Federal Contractors:
Focus attention on the major winners receiving almost all of the $379B in new funding: DHS ($190B), DoD ($152B), FAA ($12.5B), NASA ($10B), and DOJ/BOP ($4.5B).
Prioritize opportunities in defense modernization, border security infrastructure, immigration enforcement, air traffic control systems, and space initiatives.
State and Local Governments:
Rapidly implement advanced, streamlined eligibility verification technologies to manage new Medicaid and SNAP requirements efficiently.
Strategically leverage the $50 billion Rural Health Transformation Fund, prioritizing at-risk facilities most essential for community health access.
Non-Profit and Grant-Seeking Organizations:
Reframe grant narratives to align with OBBB’s new funding priorities, particularly emphasizing rural health transformation, national security, agriculture, and border-related programs.
The OBBB is massive and transformative, but also highly disruptive, delivering immediate tax relief and substantial federal stimulus at the cost of significantly increased long-term debt, significant disruptions to social safety net and student loan programs, and reduced investment in clean energy and climate initiatives. Major fiscal storm clouds lie ahead, necessitating prudent and proactive planning, as well as decisive actions, from all stakeholders—federal contractors, state and local governments, healthcare providers, grant seekers, and households alike.
Our team at Arlington Consulting Group (ACG) and GrantExec remains available to support you. Please reach out directly with any questions or for customized analyses and strategic guidance explicitly tailored to your organization's needs.