Big Cuts, Big Costs for NC Factsheet

Tools & Resources

June 25, 2025

Note: Updated on July 2, 2025 to show estimates based on the federal budget bill (HR 1) passed by the US Senate on July 1, 2025. The bill was signed into law on July 4, 2025 with no changes, and so these estimates also apply to the final bill.

Congress is rushing to pass a federal budget that would raise costs and make life harder for regular people in North Carolina, so that the rich can get big tax breaks

Over 600,000 people in North Carolina could lose their health coverage and become uninsured because of cuts to Medicaid and the Affordable Care Act (ACA) marketplace.
142,000 people could lose help paying for food because of new work reporting requirements for SNAP/EBT/Food Stamps.
As many as 600,000 kids and their families would be blocked from getting the full $2,200 Child Tax Credit because their parents — who work important but low-paid jobs — don’t earn enough.
Thousands of immigrants who are here legally would lose help affording food and health insurance.

These cuts will hurt our communities in big ways and will affect all of us:

Less money for families buying food means less spending at local businesses. Over 1,400 businesses in North Carolina could close, meaning fewer places to get groceries, especially in small towns.
Almost 1 in 5 rural hospitals in NC is already at risk of shutting down. Less money for health care makes it more likely these hospitals will close, let go of workers, or stop offering important care that people in the community need.

And make it even harder to afford the basics:

Everyone using SNAP/EBT/Food Stamps would lose an average of $7 per month in the near term.
Average annual electricity costs would rise by $215 for households and over 20% for businesses in 2026.

All this just to give more tax cuts to the ultra-wealthy: The richest 1% (earning more than $867,000 a year) would get about $60,000 back in taxes. But those who make less than $25,000 a year would only get about $60 back, while losing critical food and health care support.

Federal budget cuts mean more pressure on our state budget

The federal government’s new plan will force North Carolina budget writers to spend a lot more money from the state budget to keep important programs running — money we don’t currently have. When the state can't fund these new costs, people across our state will be hurt even more.

But state lawmakers can work to lessen the harmful effects of federal decisions now. They can pause scheduled income tax cuts and make sure that the state protects: