How the ‘Big Beautiful Bill’ will impact the Carolinas

CHARLOTTE, N.C. — The Trump Administration’s ‘Big Beautiful Bill’ is heading to President Donald Trump’s desk, after passing a final vote from the U.S. House of Representatives Thursday afternoon, just ahead of the July 4 deadline.

It achieves many of the administration’s priorities, such as $350 billion in national security, and most notably, an extension of Trump’s tax breaks, totaling $4.5 trillion. That includes allowing workers to deduct tips and overtime earnings from their taxes, as well as some tax breaks for seniors. 

Republicans say this is a huge step towards limiting waste, fraud and abuse, while Democrats warn of potential harm to public services. 

Here is how those services may be impacted in North and South Carolina.

The Big Beautiful Bill would require states to pay a portion of costs for SNAP, the Supplemental Nutrition Assistance Program. Currently, 1.4 million North Carolinians and 577,000 South Carolinians rely on the program.

Under this bill, those numbers would shrink.

It would tighten eligibility by expanding work requirements to include adults up to age 64, compared to the current age limit of 54. It would also require parents with children older than 6 to work. 

It does have other exceptions for the work requirement rule, including those with children under 14, pregnant people, and the disabled.

Right now, SNAP is 100% federally funded. Beginning in 2028, states would be required to cover at least 5% of the program’s costs. States with high error rates could see that percentage increase. 

According to USDA data, South Carolina had a payment error rate of 9.25% in 2024. North Carolina’s was 10.21%. This means, under the bill, both states would have to pay for 10% of the benefits and cover more administrative costs.

Over 10 years, the cuts total around $230 billion, which Republicans characterize as eliminating “waste fraud and abuse.”

Dozens of lawmakers, including Congresswoman Alma Adams from Charlotte, urged House leadership to remove the SNAP provisions from the bill. On Thursday, Protesters in Charlotte expressed concern about the impact on top of existing program delays and understaffing.

“The bill has not even been passed yet, but folks are really, really suffering now, not being able to receive their Medicaid or their snap benefits because of – there’s no one there to process their cases,” said Sangria Noble of the North Carolina Poor People’s Campaign.

The NC Department of Health and Human Services warned that cuts could hit some regions, including western North Carolina, especially hard.

The legislation would create a federal voucher-like program available to families who want help paying for their student’s private school education. Individuals can knock $1,700 off their tax bill if they donate to an organization supporting this effort. 

The proposal builds on existing state-level initiatives in both states, if they choose to participate.

North Carolina lawmakers expanded the state’s voucher program by more than $460 million last year, with Republicans saying the goal was to clear the backlog of 50,000+ students waiting. It also made the program available to families of any income level.

South Carolina’s K–12 Education Lottery Scholarship has already reached its capacity for the 2025-26 school year, awarding vouchers to 10,000 students. A lawsuit on this revamped program is still anticipated, due to language in the state’s constitution.

However, critics argue the expansion primarily benefits families who were already using private schools. Public Schools First North Carolina found that 87% of new state voucher recipients this year had never attended public school. They say this means public schools will feel 

“In Mecklenburg County, 58% of the vouchers this year went to families in the tiers that were too wealthy to have received vouchers in previous years, so this year is the first year that any family, even if they’re millionaires, can qualify to receive state funds,” said Heather Koons, Director of Research and Communications at Public Schools First NC.

The North Carolina Association of Educators released a statement urging lawmakers to reconsider the federal proposal, saying it would harm students “by diverting public funds to private school vouchers and draining resources from the schools that serve the vast majority of our students.”

North Carolina Governor Josh Stein warns that the Big Beautiful Bill could increase electricity rates by 18% in the state. WFMY spoke to clean energy analyst Michael Thomas, who runs the national tracking company Clean View, said the bill could spike electricity costs across the country due to provisions that eliminate tax credits for new green energy projects.

“There’s no doubt this bill is going to increase electricity prices all over the country,” Thomas said. “In states like North Carolina, folks can expect their bills to go up about 18%.”

Dan O’Brien with Energy Innovation said their modeling shows the average North Carolina household would see power bills rise up to about $700 more per year.

Supporters argue the tax credit cuts are offset by other benefits, including updated standard deductions that would reduce tax liability by $253 for single filers earning the average North Carolina salary and $506 for married couples.

Contact Julie Kay at juliekay@wcnc.com and follow her on Facebook, X and Instagram.

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