Republicans in Congress are racing to pass President Trump’s “One Big Beautiful Bill” before the Fourth of July holiday.

What could the tax and spending mega-package mean for Connecticut families?

Winners include homeowners and tipped workers. But there are also potential losers, like HUSKY Medicaid recipients, clinics and hospitals.

Erica Labrador, of Bridgeport, works full time – all while raising three young children. HUSKY Medicaid was a big help when they were born.

“It covered 100% of the cost of my birth, of my three children, who – two of the three were premature,” she said.

One in four Connecticut residents relies on HUSKY for health care.

But the new budget package cuts $1 trillion from Medicaid over the next decade, according to the nonpartisan Congressional Budget Office.

Most Medicaid and SNAP food stamp recipients will have to prove they are working or going to school for 80 hours a month. There are exemptions for pregnant women, those with disabilities and parents of younger children.

Some patients will also face a new $35 co-pay – but not for primary care visits.

“Kicking more than 17 million people out of health insurance as a result of the ‘Great Big Beautiful Bill,’” said Sen. Richard Blumenthal. “I call it the ‘Great Big Betrayal.’”

Nonprofit clinics warned that opioid overdose prevention funds are at risk. In Connecticut, 53,634 Medicaid enrollees were treated for a substance-use disorder in 2021.

"This is just devastating," said Kim Nelson, chief program officer at the Wheeler Clinic in Plainville. “Approximately 70% of our population are funded by Medicaid."

Hospitals could get less money in provider tax reimbursements, but not until 2028. Gov. Ned Lamont said the extra time will help the state find budget alternatives.

“The Medicaid cuts could have enormous. They could have been immediate,” he said on Tuesday. “I’d like to think that's not going to be the case.”

Some congressional Republicans are balking at the Medicaid cuts, but supporters said they are simply rooting out fraud and waste.

“We are cleaning up the enormous messes left by Biden and the Democrats,” said Sen. Ron Johnson (R-Wisc.). “The open borders, the wars, four years of average deficit of $1.9 trillion.”

Nearly all households will get tax relief under the Big Beautiful Bill, but the highest earners will benefit disproportionately. A Tax Policy Center analysis shows nearly 60% of the cuts would benefit the top 20% of U.S. households – those making more than $217,000 a year.

Here in Connecticut, homeowners are the biggest winners. The State and Local Tax (SALT) deduction jumps from $10,000 to $40,000 until at least 2029. SALT allows people in high-tax regions like New England to reduce their federally taxable income.

Parents will get an extra $200 child tax credit, while seniors will see a $6,000 tax break. For servers, bartenders and hair stylists, the budget package temporarily eliminates federal taxes on tips and overtime – a campaign promise of Trump’s.

“It’s also a beautiful economic development bill,” he told reporters. “Great for the border, great for low taxes.”

The budget could also boost Connecticut’s sizable defense industry. It includes an extra $150 billion for new Navy ships and a missile defense shield.

But all this comes at a cost. Despite the steep spending cuts, CBO found that Trump’s package adds $3.3 trillion to the national debt. Some Republicans in the narrowly-divided U.S. House are threatening to sink the bill over the extra spending.

“We’re adding debt to our children and grandchildren, who are defenseless,” said Rep. Ralph Norman (R-S.C.). “Debt is a curse."”

Labrador thinks the rich are benefiting at the expense of struggling families.

“We’re nowhere near being billionaires. I am a middle-class working person,” she said. “I feel like we get a cut for everything, whether it be HUSKY or education. We’re always getting some type of ‘budget cut.’”

Trump has urged Congress to pass the budget package before the Independence Day holiday on Friday.