On July 4, 2025, the federal government enacted the “One Big, Beautiful Bill Act”. The new law brings sweeping changes to the nation’s tax code, healthcare programs, education funding, and safety net systems. While some households and businesses in Connecticut may see short-term benefits, the overall impact on working families is expected to be challenging—and in many cases, deeply disruptive.

Connecticut’s Office of the State Comptroller recently released a detailed analysis of the law’s effects, and the findings paint a sobering picture. Here’s what working families in Connecticut need to know.

Rising Interest Rates Will Increase the Cost of Living

The bill adds more than $3 trillion to the national debt, which economists warn could lead to higher long-term interest rates. That matters for working families in Connecticut, where costs are already high and affordable housing is scarce.

Higher interest rates make it more expensive to buy a home, take out student loans, refinance a mortgage, or invest in a small business. They also make it more costly for the state to borrow for things like school construction and infrastructure, squeezing public budgets and making it harder to invest in local services.

Even a modest rise in rates could mean thousands more in lifetime interest payments for families—and fewer resources for education, healthcare, and transportation.

Marketplace Health Insurance Will Get More Expensive—and Harder to Keep

For families who don’t qualify for Medicaid but still need affordable health insurance, Connecticut’s Access Health CT marketplace has long been a lifeline. But under OBBBA, coverage through the ACA marketplace will become more expensive and harder to maintain.

Starting in 2026, enhanced subsidies for middle-income families will expire, driving up premiums for nearly 150,000 Connecticut enrollees. By 2028, new verification rules will eliminate the ability to automatically renew plans and could disqualify people from receiving financial help if their paperwork isn’t submitted correctly or on time.

According to Access Health CT’s own projections, as many as one-third of current enrollees could lose coverage over the next decade. These changes will hit middle-class families especially hard—those who earn too much for Medicaid but not enough to afford unsubsidized premiums.

Rising Costs of College and Student Loans

For families saving for college or helping their children pay for it, the bill makes higher education less accessible. While it includes some new options for short-term credential programs, many of the changes increase financial pressure on students and parents.

Caps on federal student loans will limit how much students can borrow, particularly at the graduate and professional level. New repayment plans stretch out the time it takes to earn forgiveness, and financial hardship deferments are being phased out. These changes could mean more reliance on high-interest private loans or choosing not to attend at all.

At the same time, colleges whose graduates earn below a certain threshold may lose eligibility for federal loan programs. That puts pressure on degree programs in social work, mental health, and education—fields that serve the public but don’t always offer high salaries.

Cuts to Clean Energy Could Eliminate Good-Paying Jobs

Connecticut’s clean energy sector—responsible for 46,000 jobs across the state—is poised to take a hit. OBBBA ends or phases out most federal tax credits for solar installations, wind energy projects, electric vehicles, and home efficiency upgrades.

These incentives have supported job growth, small business development, and consumer savings. Their removal could lead to project cancellations and job losses, just as electricity demand is rising due to the growth of AI data centers and heat pump installations.

For working families, this means fewer job opportunities in a growing sector, higher home energy costs, and a potential step backward on state climate goals.

Health Coverage Losses Could Hit Over 100,000 Residents

Connecticut’s HUSKY Health program—the state’s version of Medicaid—covers nearly one in four state residents. But under the new law, between 100,000 and 200,000 people in Connecticut are projected to lose their health insurance over the next decade. The reasons are bureaucratic and technical, but the result is the same: fewer families will be protected when illness or injury strikes.

New rules require adults to document 80 hours of work, education, or volunteer service each month to keep coverage. Most people on Medicaid are already working, but these new requirements introduce added red tape and risk. Even people meeting the rules could lose coverage if they miss a paperwork deadline or are delayed in proving eligibility. At the same time, Connecticut will now have to conduct twice-yearly eligibility checks for many enrollees and impose new co-pays on low-income families—barriers that may discourage people from seeking care.

The financial consequences are severe. The state could lose $13 billion in federal Medicaid funds over ten years, and hospitals may absorb billions in uncompensated care. That could drive up insurance premiums for everyone else.

Fewer Families Will Get Help Affording Groceries

Roughly 400,000 Connecticut residents rely on SNAP (formerly known as food stamps) to help feed their families. The new law imposes stricter work requirements, narrows eligibility, and—for the first time ever—shifts part of the cost of the program onto state budgets.

Parents of children over 13, older adults up to age 64, and groups previously exempt—like veterans, young adults aging out of foster care, and people experiencing homelessness—will now have to meet rigid work requirements. Even those working may risk losing benefits if they can’t keep up with the new paperwork or job reporting systems.

State costs could soar. If current eligibility and benefit levels are maintained, Connecticut may owe between $84 million and $173 million annually in new costs for SNAP benefits alone. Administrative costs are also increasing, adding another $39 million or more to the state budget. Without new state funding, the result could be narrower eligibility or smaller benefits—either of which would hurt struggling families.

On paper, there are provisions that might sound appealing: tax cuts, new deductions for workers, investments in defense, and support for small businesses. But those benefits are not evenly distributed—and they don’t come free.

In Connecticut, the burden of the bill is likely to fall hardest on those already living paycheck to paycheck. Low-income workers, immigrants, seniors, single parents, and families navigating health issues or job instability stand to lose the most. Meanwhile, many of the tax benefits flow to the top of the income scale, where they are least likely to be felt as a lifeline.

The choices made in this legislation reflect national priorities. But the consequences will be felt locally—in our hospitals, grocery stores, schools, and homes. Working families in Connecticut are resilient. But the coming years will demand strategic planning, bold state leadership, and a commitment to ensuring that no one is left behind.