On Friday, July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (H.R. 1) Public Law No: 119-21 (The OBBB Act), that encompasses extensive reforms affecting various sectors of interest to Nossaman clients and strategic partners, including transportation, energy, environmental policies, education, national security and tax. Title I of the OBBB Act acts as a Farm Bill reauthorization, focusing on conservation programs and beneficial tax amendments for the agricultural sector. Investments in the Federal Aviation Administration (FAA) and U.S. Coast Guard, alongside water infrastructure improvements, mark key infrastructure actions. The bill extends tax cuts from the 2017 TCJA and modifies renewable energy project regulations. Education reforms impact Pell Grant eligibility and student loan repayment structures, with implications for community college student support systems. Deep cuts to SNAP may worsen food insecurity, highlighting the need for continued advocacy and institutional adaptation to mitigate potential adverse effects. Approximately $156 billion is provided to enhance U.S. national security, funding focusing on border security, missile defense, hypersonic systems and critical minerals. Collectively, these provisions reflect a significant federal shift, presenting both opportunities and challenges across the spectrum.
In these eAlerts, we explain what each of these issues might mean to you, and how you can address them head-on.
Infrastructure Overhaul: Transportation, Energy & Water Reforms
- The OBBB Act encompasses substantial changes across various sectors, including transportation infrastructure, energy policies and water resources. Notable investments include $12.5 billion for FAA modernization and $24.6 billion for the U.S. Coast Guard. The bill, however, rescinds several community reinvestment and clean transportation grant programs, modifies environmental review processes and imposes new fees on renewable energy development on public lands. Additionally, there are increased investments in water infrastructure and an expansion of the Watershed Protection Act. Read More
Tax Extensions & Adjustments
- The OBBB Act extends and makes permanent many provisions from the 2017 Tax Cuts and Jobs Act. Noteworthy tax changes include expanded deductions for state and local taxes, continued tax breaks for Qualified Opportunity Zones and a phase-out of tax credits for solar and wind projects unless construction begins shortly after the bill's enactment or projects become operational by the end of 2027. The bill also adopts stricter regulations for new projects. Read More
Unpacking the Impact on Community Colleges & Student Aid
- The OBBB Act impacts community colleges by extending Pell Grants to include Workforce Pell Grants, but restricts eligibility to students enrolled at least half-time. It mandates community colleges to submit to earnings-based accountability measures and includes substantial reductions to SNAP funds, which may exacerbate student hunger issues. The bill also significantly alters student loan repayment by replacing existing Income-Driven Repayment plans with the standard repayment plan and the Repayment Assistance Plan, extends repayment periods and phases out the Public Service Loan Forgiveness program for new borrowers. Read More
Enhancing U.S. National Security & Defense Capabilities
- The OBBB Act aims to significantly bolster U.S. national
security through a comprehensive funding strategy, totaling
approximately $156 billion. This funding is allocated across
various critical defense sectors including border security, missile
defense, shipbuilding, marine industrial base, hypersonic defense
systems and advanced aerospace capabilities. Key highlights include
substantial investments in military readiness, nuclear arsenal
modernization and innovations in cyber and space defense. The bill
also emphasizes the importance of strengthening the supply chains
for critical minerals and enhancing the defense industrial base to
ensure sustained military superiority. Read More
Agriculture Reimagined: Conservation, Taxes & Specialty Crops
- Title I of the OBBB Act includes increased funding for voluntary conservation programs, tax amendments beneficial to farmers and ranchers, reauthorization and increased funding for specialty crop programs and updates to dairy policies. While Pell Grants and SNAP benefits received adjustments that may impact the agricultural community, the bill overall attempts to bolster the agricultural sector through significant investment in various programs. Read More
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
