The federal government’s new fiscal package, nicknamed the “Big Beautiful Bill” (BBB), has been making waves nationwide. While headlines tout generous tax breaks and family-friendly perks, the deeper impact on states like New Jersey reveals a more complex—and unequal—reality. Here’s a breakdown of what the bill really means for the Garden State
Benefits for New Jersey (on the surface)
At first glance, New Jersey appears to be a winner:
- Child Tax Credit raised from $2,000 to $2,500 per child
- Senior Deduction Boost: +$4,000 standard deduction for those 65+ through 2028
- SALT Deduction Cap increased from $10K to $40K (for households earning <$500K)
- Tax Exemptions for Tips and Overtime
- MAGA Child Accounts: $1,000 federal match per child into new savings vehicles
The Hidden Cuts
Beneath the flashy tax breaks, the bill includes deep cuts to vital programs:
- $32M cut from NJ Transit
- $11.5M cut from climate/environmental initiatives
- $8.2M cut from education grants
- $6.4M cut from mental health and public health services
- $5.9M cut from housing and homelessness programs
Who Really Gains?
To understand the bill’s real impact, we need to look at the numbers by income group:
| Group | Gains ($M) | Losses ($M) | Net Impact ($M) |
|---|---|---|---|
| High-Income Homeowners | 1350 | 50 | +1300 |
| Middle-Class Families | 300 | 150 | +150 |
| Low-Income Households | 50 | 300 | -250 |
| NJ Overall | 1700 | 640 | +1060 |
Temporary Relief, Long-Term Costs
Most of the “gains” from the BBB expire by 2028, but the cuts are permanent. NJ may see temporary tax relief, but at the cost of:
- Crumbling public transit infrastructure
- Fewer services for students and vulnerable populations
- Loss of momentum on climate action and affordable housing
Conclusion:
The “Big Beautiful Bill” may look appealing in the short term, especially for homeowners and older residents, but its long-term effects raise serious equity concerns. In New Jersey, the people who need help the most stand to lose the most.
Call to Action:
Stay informed. Contact your local representatives. Share this breakdown with others. Real change begins with real understanding.
