Q: How will the Senate version of the One Big Beautiful Bill impact Iowans?

A: Based on my county meetings, emails and phone calls, Iowans are paying close attention to the One Big Beautiful Bill moving through Congress. After passing the House of Representatives, the committees of jurisdiction in the Senate are now hammering out policy details on agriculture, taxes, immigration, health care and more. The bill is advancing in the Senate under the expedited reconciliation process that doesn’t require a 60-vote threshold and can’t include non-budgetary matters in the bill.

As a senior member and former chairman of the Senate Finance Committee, I’ve had my sleeves rolled up at the policymaking table advocating on behalf of Iowans, including agriculture, energy, taxes, health care and more. This package is a generational opportunity to prevent the largest tax increase in U.S. history and restore fiscal sanity. Americans sent a strong message in the last election and delivered a mandate to President Trump and the Republican majority in Congress. That mandate includes cutting government bloat, reining in wasteful spending and stopping the biggest tax increase in the history of the country.

Let’s start with health care, in particular Medicaid. That’s the federal-state program that provides free or low-cost health care to individuals based on their income and family size, serving Americans with disabilities, seniors, kids, pregnant moms and others. A sizable majority of Americans supports efforts to stop wasteful spending that drains resources for people who truly need this safety net and puts an unfair burden on taxpayers. I’ve been a long-time champion for protecting the Medicaid program for the most vulnerable Iowans. This includes my work to pass the Family Opportunity Act and Advancing Care for Exceptional (ACE) Kids Act, and my continued work on supporting kids with complex medical needs and improving maternal and child health. The Senate bill includes measures to strengthen the integrity of the Medicaid program, delay costly Biden-era regulations, stop Obamacare subsidies from going to illegal immigrants and enacting work requirements for able-bodied adults with reasonable exemptions, such as parents with young kids.

Contrary to misinformation campaigns seeking to stop these common-sense reforms from getting to the president’s desk, the Senate bill does not take away Medicaid from those who genuinely need it. In fact, our bill seeks to strengthen the program so that it can continue to serve vulnerable populations it was designed to serve. For example, it would stop people from taking advantage of Medicaid coverage in multiple states; remove safe harbor protections for those who make erroneous excess payments; and, ban Medicaid managed care PBM spread pricing, among many other common-sense program integrity provisions. Pharmacy Benefit Managers (PBMs) are the middlemen who negotiate prices with pharmaceutical companies, health insurance companies, employer benefit plans, pharmacies and the consumer. PBMs can raise prices consumers pay for their medications, and instead of passing that revenue along to the pharmacy, they pocket the difference, known as “spread pricing.” I’ve long worked to reduce prescription drug prices and I’m pleased to get this specific reform in the Senate bill.

Q: What’s so critical about the tax provisions in the bill?

A: Our bill makes the 2017 tax law permanent. If Congress does nothing, the U.S. economy will get strangled by a $4 trillion tax hike on American workers, small businesses, farmers and families. The last thing American households and small businesses need – after recovering from supply chain setbacks during the pandemic and record-setting inflation under the Biden administration – is a higher tax bill from the federal government. Letting the 2017 tax law expire would cut the child tax credit and standard deduction in half. Iowa families would see on average a $1,400 tax increase. It also would slap a massive tax increase on small businesses, slamming the brakes on hiring, investing and expanding in local communities across the country. Iowa would stand to lose 57,000 jobs and more than $5 billion in employee wages across the state.

Instead, the Senate bill would provide additional tax relief to working families, making permanent across-the-board tax rates; expanding the child tax credit; strengthening employer-provided childcare credit; enhancing the standard deduction; and, making permanent the small business deduction. It adds new tax relief for tipped workers and hourly workers who earn overtime pay, repeals burdensome reporting requirements for gig workers (rolls back the proposed $600 threshold for online payment platforms) and reduces paperwork burdens for small businesses by increasing the 1099-MISC threshold. The Senate-backed pro-growth tax policies would fuel investment with full expensing for domestic research and development, new capital improvements (including machinery and equipment) and new factories and factory improvements. These measures would provide much-needed certainty for small businesses and factories across our state, concerns I hear about regularly during my county meetings.

U.S. Sen. Charles Grassley, a Republican, represents Iowa.