Big Bill, Quiet Ripples: How the OBBBA Brushes Tenafly
- Achyut Manoj
- Jul 22
- 4 min read
The extensive federal reforms, spending cuts, and shifts in priority of the recently passed One Big Beautiful Bill Act affect communities like Tenafly in a few ways
Undoubtedly, The One Big Beautiful Bill Act (OBBBA) is the most extensive and radical set of reforms passed since President Donald Trump’s re-election. For better or worse, it will have a significant impact on everything from federal taxes to green energy technology ventures, from Medicaid and SNAP programs to defense expenditure. It’s been all over the news for weeks on end, and its approval from both the House of Representatives and the Senate has stirred large-scale online debate over how the economy, technology innovation, national defense, and taxpayers’ standard of life will be impacted.
Regardless, it has shockingly little local impact compared to the overall scope and goals of the legislation. Some of these effects on everyday life for people living in Tenafly and surrounding towns, however, will definitely be felt. Highlighting a few of them can bring to light how these reforms will affect municipality life in tt
Firstly, personal finances and taxes will see noticeable change.
The TCJA individual federal income tax rates (10%, 12%, 22%, 24$, 32%, 35%, 37%) have become permanent1, preventing the top tax rate (including single filers with taxable income exceeding $626,350 and married couples filing jointly with $751,600 in 2025) from increasing to 39.6% in 2026. Standard deduction for singles at $15,750 and married joint filers at $30,000 will start in 2025 and increase incrementally until 2028. However, personal exemptions will be effectively suspended, except for a temporary senior deduction of $6,000 which phases out past a modified AGI of $75,000.
Estate tax exemption has risen to $15 million (indexed for inflation) and the state and local tax (SALT) deduction cap has increased from $10,000 to $40,000 for households with incomes under $500,000. Most popularly, the Act boasts provisions for no taxation on tips or overtime, a great benefit to Americans working in the food, hospitality, and beauty industries.
On the other hand, social programs and utilities face more bleak futures. Cost cuts, stricter recipient work requirements, and changes to how benefits are calculated will deal harsh strikes to programs such as NJ SNAP (food assistance), NJFamilyCare, and Medicaid. These significant reductions in federal funding for Medicaid are estimated to result in 350,000 low-income, elderly and disabled New Jersey residents losing health care coverage. Along with the increased monetary strain on social welfare programs and more stringent requirements for one to qualify for them, OBBBA pushes for $3.3 billion in annual cuts in funding to hospitals and public health funding. The effect would be self-explanatory.
Similarly, a provision to shift more of the financial burden of programs like SNAP and medicaid onto states will force the New Jersey government to raise upwards of $100-300 million, or risk eliminating certain social welfare programs. The NJ state government itself reports that “county governments,” will need “to find or tax an additional $78 million annually due to decreasing federal reimbursement.”
That money has to come from somewhere, and in great likelihood, might detract from the funding given in grants and aid to Tenafly and other municipalities for local-level projects, development, and necessary/emergency activity. Funding for education and the district’s referendum projects also rely on state aid. Regardless, it’s still uncertain how this new financial burden on State and County governments will have widespread, impactful consequences on municipalities’ development.
Many other provisions have been made to address taxation, businesses, and investment in research and development in the private sector. The Act encourages private R&D development and the rekindling of America’s manufacturing industry, supporting fossil fuel companies and shifting priority from the Biden administration’s focus on green energy.
Besides effects on personal finances, taxes, business, and certain government funding, the OBBA doesn’t really affect local life in Tenafly too much. A significant portion of it re-rolls tax credits, investment programs, and government support for green energy and technology innovation implemented by the Biden administration’s Inflation Reduction Act.
Another chunk of the legislation significantly swells military, ICE, and border control funding. Both of these examples demonstrate how while the Act addresses a number of issues across the country, only a few of them will directly affect local life, government, and communities.
This simply means that while OBBBA is a rather comprehensive and multifaceted piece of legislation, its connection to the local level isn’t very substantial in proportion to the sheer magnitude of the whole Act.
The important idea to take away from this analysis is that even a piece of legislation more targeted to the national level can have a wide range of effects on local communities and interests. However minimal its non-financial impacts on Bergen County residents might seem, OBBBA will undoubtedly impact facets of the local economy and way of life given time.
Grand reforms and changes at a higher level often trickle down to regional and local communities in some way. For now, all we can do is observe how this Act will affect Tenafly and its neighboring municipalities on a much more relatable and recognizable level.
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