How the Big Beautiful Bill Will Impact the Health and Neuroscience Industries
The Big Beautiful Bill's Influence on Patient Care, Health Care, and Research
The passage of President Trump’s “Big Beautiful Bill” (BBB) this past week will impact the lives of millions of Americans. Specifically, cuts to Medicaid, nutrition programs, student loans, and more will alter the landscape of the healthcare and neuroscience communities.
According to a recent Pew Research Center Poll, 49% of Americans oppose the BBB, while 29% favor it. Another 21% are unsure. Take this article as a chance to help form and rebuild your own opinion towards the BBB.
This week’s article is in no way supposed to be a politically polarizing read. Every American should be aware of how legislation affects the health, research, and pharmaceutical industries. Although my blog’s goal is to disseminate important and promising news regarding neuroscience research, we must also acknowledge the changes our government is making. In the 2024 fiscal year, over a quarter of federal spending ($1.9 trillion) went to health programs and nearly $50 billion to the National Institute of Health (NIH). These high quantities demonstrate the strong ties between our government, health, and research. Towards the end of today’s post, I’ll highlight some optimistic remarks on how this bill could reshape the industry.
Medicaid & SNAP Cuts - Patients will panic
To qualify for Medicaid & SNAP under the BBB, able-bodied adults aged 19-64 must either work, volunteer, study, or train for a minimum of 80 hours per month. Those enrolled must also face more frequent eligibility reviews, as well as pay up to $35 for some care costs that Medicaid would normally cover. These changes will be enacted by the end of 2026. According to the Congressional Budget Office, nearly 12 million Americans will lose health coverage by 2034.
The harm doesn’t stop there. States will likely add Medicaid restrictions due to cuts in federal funding, which are set to begin in 2028. The damage will trickle down to hospitals, nursing homes, and care facilities, which will have to trim employee and patient numbers.
There are 7-8 million people diagnosed with neurodegenerative diseases in the U.S. alone. This will impact nearly every single one of them, along with the professional caretakers, and 12+ million people who provide unpaid care for those patients. This doesn’t include the millions of future Americans who are likely to be diagnosed with these conditions.
Student Loan Cuts - Fewer doctors and researchers
The “Big Beautiful Bill” will also change the lives of those hoping to attend professional schools. The Graduate PLUS Loan program is coming to an end, replaced by a $200,000 cap for law and medical students, and $100,000 cap for most graduate programs. Many other student loan programs are being slashed, such as SAVE and Pay As You Earn.
Because the average cost of medical school is far above $200,000, aspiring doctors from lower-income households will likely have to change their career outlook. Those seeking a master’s program will have to reconsider, as some programs can cost above $50,000 per year. Even if these changes would motivate a student to work part-time in their undergraduate studies, only full-time students qualify for Pell Grants under the BBB. This puts pressure on prospective graduate students hoping to begin funding their program while still in college.
These cuts to student loans will make it harder than ever for lower and middle-class Americans to receive professional degrees. Graduate programs are likely to be filled only with students whose parents have generational wealth. Not so much the “Land of Opportunity” for all Americans. Combined with the large cuts to research funding, fewer deserving and intelligent minds will seek graduate programs. These changes have the potential to put science back many years, as a growing number of students are traveling to graduate programs abroad. The United States is likely to miss out on a generation of homegrown scientists due to the NIH cuts and these loan cuts. This country will also see a decrease in international students coming to American graduate programs, which reached a record high of 1.1 million students in 2023/2024.
Tax Cuts - Uncutting the U.S. debt
Trump’s new legislation establishes short-term gains and long-term losses. The Tax Foundation estimates a long-run GDP increase of 1.2%, but a total deficit increase of $3.8 trillion by 2034. This debt-to-GDP ratio is predicted to increase by 9.6% by 2034, meaning our country’s debt will grow faster than our economy.
Lower tax brackets will receive temporary relief, as the income thresholds are being adjusted for an extra year of inflation, effectively lowering taxes for people in the 10%, 12%, and 22% brackets. However, in the long run, the combined effects of the tariffs and the BBB would reduce the resources of lower-income families. This can partly be attributed to the cuts to Medicare and SNAP. Read more about the logic of this graph here.
This point follows the same logic as my point on equal opportunity for all Americans to enter the health care and research industries. The tax changes directly target lower-income households in the long term.
Now, let’s take a look at how our country could adapt to account for this life-changing legislation.
An Optimistic Outlook
I believe that these policy shifts will only drive industry and privatization further. There are many emerging options for students to receive loans from private financial institutions. With more financing opportunities, lower-income individuals may be able to attend undergraduate and professional schools with more ease. This will hopefully help level the playing field for all students.
Research may also see a shift toward the private sector. With several emerging therapies and research developments, biotechnology and pharmaceutical companies may grow. Just this week, Trump threatened to impose a 200% tariff on pharmaceuticals. Approximately 80-90% of active pharmaceutical ingredients are produced overseas. If Trump holds his word, this enactment will hurt the markets in the next few years, but it may drive onshore development in the long run. The research market may see a greater shift from academia to private industry for these reasons.
The tax cuts to high-income households may translate into higher donations and stipends for researchers. The Alzheimer’s Association, for example, a major non-profit private research fund, has already received $430 million in funding. Bill Gates himself has donated $100 million to this organization. With tax cuts, the upper class may (a strong may) be more willing to donate to causes they care deeply about. In a recent survey, Americans displayed continued openness in donating in 2025 despite inflation; however, this survey was conducted before the BBB was announced.
Final Thoughts
The Big Beautiful Bill will impact every single American, whether positively or negatively. And because of that, gaining perspective on how policy alters the future of the United States is vital. Don’t stop here. Please continue researching how the BBB and current administration will change the lives of you and your community. Take the time to digest this information and remember it come the next election primaries.
As always, the impenetrable flame under the belts of researchers and caretakers around the country burns on. Stay tuned for next week to hear more about recent advancements in neuroscience.
Sources
https://abcnews.go.com/Health/republican-megabill-higher-health-costs-americans/story?id=123461502
https://www.cnn.com/2025/07/01/politics/congress-senate-bill-tax-spending-trump-gop-explainer
https://www.cbsnews.com/news/whats-in-trump-big-beautiful-bill-senate-version/
https://www.newsweek.com/when-trumps-big-beautiful-bill-takes-effect-2094718
https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/
https://budgetlab.yale.edu/research/combined-distributional-effects-one-big-beautiful-bill-act-and-tariffs