OBBB Delivers Historic Expansion of Educational Choice, Sweeping Reforms

Harrisburg, Pa., July 3, 2025 — After much anticipation and debate, the One Big, Beautiful Bill (OBBB) is now passed and set to be enacted—delivering policy accomplishments that Pennsylvanians can celebrate:

Protecting Taxpayers: Preventing an average $2,500 tax hike per Pennsylvania taxpayer. Nearly every Pennsylvanian has benefited from the 2017 Tax Cuts and Job Act, which OBBB blocks from expiring after the end of this year.

Prioritizing Students: Expanding educational choice by establishing a new federal tax credit scholarship program modeled after Pennsylvania’s highly successful Educational Improvement Tax Credit.

Reforming Welfare to Protect Pennsylvanians: Introducing common sense reforms to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), protecting these programs for those who truly need it by establishing work expectations for able-bodied, healthy, childless working-age adults.

Recent polling shows overwhelming bipartisan support for these measures:

• 80% support renewal of the Tax Cuts and Jobs Act to prevent tax increases in 2026.
• 83% support enactment of federal tax credit scholarships to provide access to more education options.
• 84% support establishing work requirements for healthy adults (excluding seniors, individuals with disabilities, and those with young children) receiving welfare benefits.

Andrew Lewis, President and CEO of the Commonwealth Foundation, issued the following statement:

“This delivers major wins that benefit all Pennsylvanians. Congress passed historic accomplishments that protect taxpayers, reform our broken welfare system, and expand educational options for students. These measures enjoy overwhelming bipartisan support from at least eight-in-ten Pennsylvania voters.

“This legislation protects taxpayers from an average federal tax hike of $2,500 that would take effect next year. Lower taxes mean more take-home pay and a stronger economy. Moreover, this delivers critical financial relief for Pennsylvanians struggling to make ends meet and already facing the prospect of looming tax increases at the state level.   

“The bill also tackles consequential Medicaid reform, the fastest-growing expense in Pennsylvania’s budget, by adding work requirements for healthy, able-bodied adults. These reforms ensure the program is refocused on those who need it most.

“Most excitingly, OBBB launches the first-ever federal tax credit scholarship program. Modeled after Pennsylvania’s highly successful EITC program, expansion of these scholarships will empower millions of families here in Pennsylvania and nationwide to choose the school that best serves the unique learning needs of each child.

“This is what getting stuff done looks like: enacting policy wins that prioritize families over bureaucracy, expand economic opportunity for all Pennsylvanians, and make government work better for those it serves. OBBB marks a turning point and proves that real reform is still possible.”

Commonwealth Foundation experts are available for comment and to offer background analysis. Please contact Giana DePaul at gmd@commonwealthfoundation.org or (215) 859-0384 for any inquiries.

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The Commonwealth Foundation transforms free-market ideas into public policies, empowering all Pennsylvanians to thrive.