Contributed to GwinnettForum
ATLANTA, Ga. | A new analysis from the Georgia Budget and Policy Institute (GBPI) finds that the federal reconciliation bill (H.R. 1) represents one of the most regressive federal policies in modern history, delivering massive tax breaks to the wealthiest Americans while cutting essential programs that support health, education, and food security for millions in Georgia.
The legislation grants $1 trillion in tax reductions to the top one percent of earners, while slashing Medicaid and the Supplemental Nutrition Assistance Program (SNAP) by an equal amount. It also adds $3.6 trillion to the national deficit and diverts public dollars to private K-12 schools through an uncapped voucher tax credit, likely costing at least $3 billion annually.
Staci Fox, president and CEO of GBPI, says: “Under the guise of tax reform, H.R. 1 trades food, health care, and educational opportunity for millions of Georgians in exchange for more wealth at the top. This bill is a direct attack on rural communities, people of color, immigrants, and working families, those already pushed to the margins. Georgia cannot afford to be a proving ground for policies that deepen inequality.”
The impact is especially severe in Georgia, where:
- 73% of tax savings go to the top 20 percent of earners, while the bottom 60 percent get just 12% percent.
- Medicaid cuts of up to $12 billion threaten access to care and the stability of rural hospitals.
- SNAP cost shifts could saddle the state with nearly $500 million in new expenses, putting food access at risk.
- Public education funding is undermined by federal private school vouchers and delayed payments to schools serving migrant, English learner, and low-income students.
- Student loan changes and Pell Grant restrictions are expected to reduce access to higher education for low-income Georgians.
Despite the magnitude of these federal cuts, Governor Brian Kemp’s FY 2027 budget instructions direct state agencies not to replace lost federal funds in their budget requests. Instead, agencies are required to reflect those reductions in their base budgets, with no option to propose backfilling essential services. GBPI calls this an irresponsible response that shifts the burden of harmful federal policies onto already strained state systems and vulnerable Georgians.
Fox adds: “This is not fiscal responsibility; it’s abandonment. When the federal government pulls back support, state leaders have a duty to step up. Choosing not to is a choice to let communities fall through the cracks.”
- The full analysis is available at www.gbpi.org
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