Recent polling shows the federal budget and tax megabill that President Donald Trump signed in July is unpopular with the American public. The White House and congressional Republicans are hoping that renaming the One Big Beautiful Bill Act to the Working Families Tax Cut – and larger tax refunds – will increase the new law’s popularity. But as The New York Times’ Andrew Duehren notes, the reality of what the law actually does will complicate this rebranding effort:

Despite the new title, the law’s cuts to government benefits like Medicaid, a health care program for the poor, may be the most significant policy change for many Americans, potentially making the law even less popular over time. And for many Americans, the tax cuts from the law will not be very large. Much of the legislation is dedicated to extending many of the cuts that Republicans passed in 2017, which were set to expire at the end of the year. The most expensive piece of the law was to simply extend the previous Republican tax cut, which provided its biggest benefits to the wealthy.

Low-income Americans reduce spending

A cooling labor market and rising prices are driving down consumer spending across all income groups. But as the Washington Post’s Jaclyn Peiser explains, the spending retreat is most pronounced among low-income households: 

Working-class Americans — already up against waning wage growth and rising housing and electricity costs — are easily burned by any increase in grocery prices and tariff-fueled increases on household staples, apparel and furniture, according to recent Moody’s Ratings report. They’re increasingly dipping into their savings, racking up more debt, and pulling back on discretionary spending, according to recent government data, analyst reports and retail executives.

This, in turn, is a warning sign for the broader U.S. economy: 

“When the lower income falls behind their spending power of previous years, it’s not easy to make up the difference,” [Marshal Cohen, chief retail adviser at market research firm Circana] said. “It adds up. It’s hard to get equal growth to match up to the decline that occurs when lower income consumers pull back.”

Grocery inflation hit a two-year high in August and tariffs are driving up prices for items such as appliances and furniture. The increased cost of housing and utilities is further straining the budgets of low-income households: 

Gas and electricity bills spiked in August, according to the latest consumer price index report, increasing 13.8 and 6.2 percent, respectively, since last year. The poorest 20 percent devote about 40 percent of their income to housing, whereas the richest 20 percent typically spend less than 30 percent, [Moody’s Claire] Li said. 

Fewer households and businesses getting high-speed internet
The Trump administration recently rewrote the rules for the Broadband Equity, Access, and Deployment (BEAD) Program, a $42 billion Biden-era initiative aimed at expanding high-speed broadband access to rural areas. Statelines’ Madyson Fitzgerald and Amelia Ferrell Knisely explain how the move will result in fewer rural homes and businesses getting high-speed internet: 

The program’s new technology-neutral approach will also shift a large portion of the federal funds toward satellite internet companies, including Elon Musk’s Starlink, that cost less to build but have more uneven service than underground fiber optic cable.  That means households and businesses that were looking forward to reliable, high-speed internet will no longer get support from the BEAD program.

The number of BEAD-eligible locations in Louisiana is expected to decrease by 36% as a result of the changes. 

Louisiana to reduce testing for high schoolers

The number of standardized tests that Louisiana high school students take each year will decrease from six to four beginning in 2028. The Times-Picayune | Baton Rouge Advocate’s Patrick Wall reports on the state’s effort to reduce the amount of time that students spend on comprehensive testing: 

The math and English tests that students in grades 3-8 took last school year were about 20% shorter, and beginning in 2028 students in those grades will no longer take a state social studies test every year. Still there are limits to how much the state can cut. Under federal law, students must be tested in English, math and science at least once during high school.

Louisiana is one of six states that requires students to pass comprehensive tests in order to graduate. That requirement will not change: 

Most other states have moved away from graduation exams, which critics say aren’t an accurate predictor of future success and put students with disabilities and those still learning English at a disadvantage. But (Education Superindendent Cade) Brumley said he has no intention of ending exit exams: “Not under my watch.” He argued that test scores are a better measure of student learning than course grades due to “grade inflation,” which has made it easier for students to earn high marks. 

Number of the Day

63% – Percentage of Americans who think it’s a bad time to find a good job (Source: Washington Post/IPSOS poll)