Racial Equity Impact of the “Big Beautiful Bill”

• Emancipate NC is a North Carolina-based organization working to dismantle structural racism and mass incarceration by supporting Black communities through
• education,
• advocacy, and
• legal action

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• We challenge systemic inequities, offering resources and direct support to those impacted by the justice system.

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One Big Beautiful Bill (OB3) Act – Overview

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• Landmark 2025 legislation aimed at comprehensive social and economic reforms.

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The bill CLAIMS to do the following:

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• Expands healthcare access, education funding, and childcare support.

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• Strengthens infrastructure, climate initiatives, and workforce development programs.

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• Focuses on reducing economic inequality and promoting racial and social equity.

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• Designed to provide financial relief and long-term benefits for working-class families.

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What is a Racial Equity Lens?

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• Policies can have racial outcomes even if they don’t mention race�
• Equity focuses on results, not intent
• Explain that equity is measured by outcomes, not intentions.�
• Starting wealth, access, and opportunity matter
• Black communities start with fewer resources; small cuts can have large impacts.

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Impact on Black Working-Class Families

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Due to long-standing structural disadvantages, economic inequality, and historical factors, Black Americans are disproportionately likely to rely on:

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• Medicaid,
• the Supplemental Nutrition Assistance Program (SNAP)

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• Benefit cuts increase monthly costs
• Tax relief is too small to offset losses
• Fewer protections against discrimination in housing, employment, and lending
• Long-term wealth gaps may widen, not shrink

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Historical Wealth Gap

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• Overall Disparity (2019):
1. White households had a median net worth of $189,100
2. Hispanic households had $36,050
3. Black households had $24,100.
• Asset Ownership (2021):
• White households were more likely to own
1. homes,
2. retirement accounts,
3. stocks, h
4. gher median values for these assets compared to Black households.
• Retirement Accounts (2022):
• 61.8% of non-Hispanic White families held retirement accounts,
• 27.5% of Hispanic 34.8% of Black families.

• Medicaid: As of 2022 data
• Black Americans make up about 13.6% of the U.S. population but represent approximately 20% of Medicaid enrollees.
• More than half of all Black children and teens under 19 rely on Medicaid or the Children's Health Insurance Program (CHIP) for healthcare coverage

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• SNAP:
• More than one in five Black households relied on SNAP to meet nutritional needs
• making them more than twice as likely to participate in the program as non-Hispanic white households.
• Overall, about 26% of SNAP participants are African American.

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Impact on Black Working-Class Families

The Numbers

Students, Pell Grants, and HBCUs

• Black students rely heavily on federal aid

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• Cuts increase debt and dropout risk

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• HBCUs face financial pressure

Students and Pell Grants

Black students rely heavily on federal aid

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Eliminated: Grad PLUS loans are eliminated for new graduate students starting after July 1, 2026.

New Limits (effective July 1, 2026):

• Graduate students: Capped at $20,500 annually, with a $100,000 lifetime limit.
• Professional students: Capped at $50,000 annually, with a $200,000 lifetime limit.
• Parent PLUS loans: Capped at $20,000 annually, with a $65,000 aggregate limit per child.

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Repayment: Most existing income-driven repayment plans, including the SAVE plan, will be phased out for new borrowers after July 1, 2026, leaving only a new "Repayment Assistance Plan" and a standard repayment plan.

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Impact: These changes may force students to seek riskier, more expensive private loans with fewer protections, particularly for those in high-cost graduate and professional programs.

Students, Pell Grants, and HBCUs

Impact on Pell Grants

• The bill provides a $10 billion boost to the Pell Grant program for the 2025-2026 fiscal but, makes it harder to access.

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• Eligibility Changes:
• Workforce Pell: A new Workforce Pell Grant is created for accredited short-term training programs (8-15 weeks), expanding access for some students pursuing career training.
• Restricted Eligibility: Students with non-federal aid (like private scholarships or employer-paid tuition) that already covers their full cost of attendance will no longer be eligible to receive additional Pell Grant funds, which some students used for living expenses like childcare or transportation.
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Healthcare Inequities

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• Higher rates of chronic illness and maternal mortality

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• Medicaid cuts reduce access to care

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• Preventable conditions worsen

Healthcare Inequities

Black people have higher rates of chronic illness

• Key Chronic Conditions & Disparities:
• Diabetes: Black adults are 60% more likely to be diagnosed than White adults and face higher rates of diabetes-related kidney disease (ESRD) and retinopathy.
• Heart Disease & Hypertension: Higher rates of high blood pressure (hypertension) and higher mortality from heart disease, with lower rates of blood pressure control.
• Kidney Disease: Over three times more likely to develop kidney failure, largely driven by diabetes and hypertension.
• Mental Health: Higher prevalence of depressive symptoms and disparities in psychiatric care.
• These differences aren't just biological; they're tied to systemic issues like:
• Healthcare Access: Less access to quality care, affordable meds, and timely treatments.
• Environmental Factors: Living in areas with less access to healthy foods (low-sodium), safe places for exercise, and higher stress.
• Socioeconomic Factors: Income, education, and systemic racism contribute to poorer health outcomes.

Housing and Civil Rights

• Fair housing enforcement reduced
• By cutting funding for the Fair Housing Initiatives Program (FHIP), which funds non-profits that handle most complaints
• Effectively defunding the main enforcement arm
• Cuts to housing assistance programs
• Big Cuts to HUD Funding: The bill proposes deep reductions (around 43-44%) to the Department of Housing and Urban Development (HUD) budget, impacting various programs.
• Elimination of Key Programs: It seeks to eliminate the HOME Investment Partnerships Program and Community Development Block Grants (CDBG), crucial for building affordable housing in low-income areas.
• Section 8 Overhaul: The federal Section 8 Housing Choice Voucher program could be converted into state-run block grants with a two-year limit on assistance for non-disabled adults, drastically reducing support.
• Increased Homelessness:
• These cuts are predicted to increase poverty, destabilize families, and exacerbate the existing housing and homelessness crises.

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Real World Impacts

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• A Black single parent loses healthcare coverage or childcare help, making steady work harder — not because of poor choices, but because supports disappear.

Equity outcome: ❌ Disproportionate harm

• Black students are more likely to delay graduation, drop out, or graduate with higher debt, reinforcing the wealth gap.

Equity outcome: ❌ Long-term harm to mobility

• Preventable conditions worsen, costs rise, and outcomes decline — especially in Black rural and urban communities.

Equity outcome: ❌ Health disparities widen

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Wallet Card of Rights

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Questions and Contact Information

Executive Director

Attorney Dawn Blagrove

919.607.3217

dawn@emanciaptenc.org

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