Congress Passes the Big Beautiful Bill Act (H.R. 1)
The Senate and House passed an amended version of the One Big Beautiful Bill Act (H.R. 1), the reconciliation package that originally passed the House on May 22. H.R. 1 includes the renewal of the 2017 Tax Cuts and Jobs Act (P.L. 115-97) and several other legislative priorities of President Trump, including a provision to reduce taxes on overtime. The bill makes changes to Medicaid eligibility that may impact which patients encountered by fire-based EMS will be covered under the program. President Trump signed the bill into law on July 4.
Changes to the Medicaid program largely target eligibility and not benefits. The bill would implement work requirements, requiring those on Medicare to work a minimum of 80 hours a month. This requirement can be fulfilled by employment, education, or community service. Exceptions are in place for pregnant women, the disabled, and others who would be physically incapable of working. Additionally, illegal/undocumented immigrants will not be allowed to be on federally funded Medicaid. More frequent eligibility and death records checks are required. Except for emergency care, illegal/undocumented immigrants are not eligible for Medicaid coverage under the Senate-passed bill.
The Federal Medicaid Assistance Percentage (FMAP) program was changed to remove the special FMAP rate for emergency care for illegal/undocumented immigrants. The enhancements remain the same for citizens, legal immigrants, and lawful permanent residents. Other FMAP bonuses started during COVID are also phased out.
GEMT programs and other State Plan Amendment programs remain unaffected by the Medicaid provisions of H.R. 1.
A provision to limit taxes on overtime is included in the Senate-passed bill with changes from the House-passed language. Under the new version of the provision, those making under $150,000 annually ($300,000 for those filing jointly) can deduct $12,500 (or 25,000 for those filing jointly) of their overtime pay from their taxable income. Those earning over the $150,000 limit will start to phase out the deduction, losing $100 of the deduction for every $1,000 earned over the limit.
The bill allocates $300 million to FEMA to reimburse state and local emergency services for extraordinary costs incurred while providing assistance to the Secret Service to protect designated presidential residences. Local agencies will be able to request reimbursement for costs incurred at the request of the Secret Service (like overtime for additional personal requests) for presidential protection. The bill also includes $500 million to help state and local agencies detect threats from unmanned aircraft systems; $625 million for security and costs related to the 2026 FIFA World Cup; $1 billion for planning for security for the 2028 Olympics; and an extra $450 million for the Operation Stonegarden Grant Program.
The bill also would authorize auctions of 300 MHz of spectrum not less than two years after the bill is enacted. The affected spectrum potentially would be between the 1.3 GHz and 10.5 GHz bands, excepting the frequencies between the 3.1 GHz and 3.45 GHz band and the 7.4 GHz and the 8.4 GHz band. The federal FirstNet’s spectrum in the 700 MHz band would not be affected.
Unlike earlier versions of the bill, the version passed by the Senate does not make changes to federal employee retirement programs. This includes the 9.8% contribution rate and the “High-3” pension calculation, both of which remain untouched.
Please Ask Your Senators and Representatives to Push for the Start of the Application Periods for DHS Grants
There is a serious delay in the start of the application period for the Fiscal Year (FY) 2025 homeland security grants.
The State Homeland Security Grant program (SHSGP) and the Urban Areas Security Initiative (UASI) are grants at the U.S. Department of Homeland Security that help state and local governments prepare for acts of terrorism. The SHSGP program funds intelligence fusion centers; state mutual aid systems; state urban search and rescue teams; and other resources. The UASI program helps major metropolitan areas conduct exercises and purchase specialized equipment to respond to acts of terrorism. These grant programs play critical roles in the U.S. homeland security preparedness by providing an incentive for federal, state, local, tribal, and territorial agencies to work together to prepare for, mitigate, respond to, and recover from acts of terrorism.
Congress appropriated $468 million for the SHSGP program in FY 2025. It also appropriated $553.5 million for the UASI program. President Trump signed the continuing resolution to fund the government on March 15. However, as the end of the fiscal year in September approaches, DHS has yet to start the application period for these important grant programs. Meanwhile, the U.S. faces an increased threat from both domestic and foreign terrorist groups.
The IAFC asks that you please raise this issue with your Senators and Representative. Please ask them to contact DHS Secretary Kristi Noem and ask her to re-start the application period for the SHSGP and UASI program. We have a VoterVoice campaign running to help facilitate your request to start the FY 2025 SHSGP and UASI application periods.
The September 30 end of the fiscal year is fast approaching. DHS cannot allow a delay in the application periods for FY 2025 SHSGP and UASI grants.