Adoption-related Provisions in the “Big Beautiful” Budget Bill
On July 4, President Trump signed legislation (H.R. 1) into law that would substantially affect adoptive children and families. Voice for Adoption opposed the bill overall due to its cuts in Medicaid and other important services, but the legislation also included some provisions that we have historically supported. So what was in the final bill?
Dubbed the “One Big Beautiful Bill Act,” the Senate passed the legislation on July 1 by a vote of 51-50, with Vice President Vance casting a tie-breaking vote after three Republicans (Sens. Collins (R-ME), Paul (R-KY), and Tillis (R-NC)) voted no. The House passed it on July 3 by a vote of 217-214 before sending it to the White House to be signed into law.
Voice for Adoption expressed concerns throughout the process, meeting with multiple congressional offices and joining hundreds of other advocacy organizations in expressing strong opposition to proposed cuts in Medicaid, SNAP, and other programs.
Such advocacy helped block cuts for TANF and the Social Services Block Grant, but other cuts remained in the final package, including:
Medicaid Cuts: The legislation establishes new work requirements and eligibility verification requirements that are expected to reduce the number of families who receive Medicaid benefits. The legislation also institutes a new cap on Medicaid provider taxes that could force states to reduce Medicaid payment rates for health providers. It will also allow states to increase out-of-pocket charges for health care services. The Congressional Budget Office (CBO) estimates that the legislation’s healthcare provisions will lead to 16 million people losing health coverage by 2034.
SNAP Cuts: The legislation would reduce federal support for the SNAP program by pushing more costs to states and by instituting new work reporting requirements.
Although they were overshadowed by the spending cuts, the final package did include other provisions that VFA has historically supported, including:
Making the Adoption Tax Credit Partially Refundable: Section 70402 of the bill makes the federal adoption tax credit partially refundable up to a maximum of $5,000 per year. This provision becomes effective in the current (2025) federal tax year.
Expanding the Child Tax Credit: The bill increases the maximum child tax credit from $2,000 to $2,200 for the current (2025) federal tax year. The refundable portion of the credit remains unchanged at $1,700, but both the total and refundable amounts will be indexed for inflation starting in 2026.
Budgetary fights such as those surrounding the Big Beautiful Bill are usually partisan in nature, and this year was no exception. In our congressional meetings, however, there was some hope expressed that partisanship may now be set aside in favor of cooperation on other issues, such as child welfare, where the two parties have traditionally worked together across party lines.
