FACT: One, Big, Beautiful Bill Cuts Spending, Fuels Growth

5/28/2025

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Action Summary

Legislative Initiative: “One, Big, Beautiful Bill” promoted by President Donald J. Trump as a transformative fiscal reform effort.
Major Reforms:
- Welfare Reform: Largest welfare reform in American history.
- Tax Reform: Largest tax cut and reform enacted, with permanent income tax rates from the 2017 tax cut.
- Energy Exploration: Most aggressive energy exploration initiative proposed.
- Border Security: Enactment of the strongest border bill in American history.
Fiscal Impact:
- Cuts over $1.6 trillion in mandatory spending, contributing to deficit reduction.
- Challenges CBO deficit projections by arguing that maintaining current tax rates does not increase the deficit.
Economic Growth Projections:
- Peter Navarro notes that the Congressional Budget Office omits new tariff revenues from Trump’s fair-trade policies.
- New tariffs are expected to generate between $2.3 trillion and $3.3 trillion in additional revenue over ten years.
- Enhanced dynamic growth could shift the budget impact from a $300 billion deficit increase (at 2.2% growth) to a potential $2 trillion surplus (at 2.7% growth).

Risks & Considerations

The “One, Big, Beautiful Bill” introduces significant changes to welfare, tax, and energy policies, which could lead to shifts in federal funding priorities. This may impact Vanderbilt University’s reliance on federal grants, particularly if education funding is deprioritized in favor of other areas.
The bill’s focus on reducing mandatory spending and implementing welfare reforms could result in decreased financial support for programs that benefit students and research initiatives at Vanderbilt.
Changes in tax policies and the introduction of tariffs could affect the economic environment, potentially influencing the university’s financial planning and budgeting strategies.
The bill’s emphasis on energy exploration and border security may lead to regulatory changes that could impact research and development activities at Vanderbilt, particularly in fields related to environmental science and international collaboration.

Impacted Programs

Vanderbilt’s Financial Aid Office may need to reassess its strategies to accommodate potential changes in federal funding for student aid programs.
The Office of Research could face challenges in securing federal grants if funding priorities shift away from education and research towards other areas emphasized in the bill.
Environmental and Energy Research Programs at Vanderbilt may need to adapt to new regulatory landscapes and explore alternative funding sources if federal support diminishes.
The Office of International Affairs might need to navigate changes in border policies that could affect international students and collaborations.

Financial Impact

The reduction in mandatory spending and welfare reforms could lead to decreased federal support for education and research, necessitating adjustments in Vanderbilt’s funding strategies.
Changes in tax policies and the introduction of tariffs could influence the university’s financial planning, potentially affecting tuition revenue and operational costs.
Vanderbilt may need to explore alternative funding sources, such as private grants and partnerships, to mitigate potential reductions in federal support.
The economic growth assumptions and revenue projections associated with the bill could impact the broader financial environment, influencing investment and endowment strategies at Vanderbilt.

Relevance Score: 4 (The bill presents high risks involving potential major transformations of funding and regulatory landscapes affecting the university.)

Key Actions

Vanderbilt’s Office of Federal Relations should closely monitor the implications of the One, Big, Beautiful Bill on federal funding for education and research. Understanding the potential shifts in funding priorities will be crucial for strategic planning and maintaining financial stability.
The Vanderbilt Project on Unity & American Democracy should analyze the potential impacts of the bill’s welfare reform and tax changes on social equity and economic disparities. This analysis can inform public discourse and policy recommendations.
Vanderbilt’s Financial Planning Office should assess the potential impacts of the bill’s tax reforms on the university’s financial strategies, including endowment management and donor engagement. Adjusting financial models to account for changes in tax policy will be essential for long-term fiscal health.
The Department of Economics should conduct research on the broader economic impacts of the bill, including the effects of tariff revenues and energy exploration on the U.S. economy. This research can provide valuable insights for policymakers and contribute to Vanderbilt’s thought leadership in economic policy.
Vanderbilt’s Environmental and Energy Research Center should explore opportunities for research and collaboration in response to the bill’s emphasis on energy exploration. Engaging with industry and government partners can enhance the university’s role in advancing sustainable energy solutions.

Opportunities

The bill presents an opportunity for Vanderbilt’s Law School to engage in legal analysis and advocacy related to the bill’s welfare reform and tax changes. By providing expert insights and recommendations, the law school can influence policy development and implementation.
Vanderbilt can capitalize on the increased focus on energy exploration by developing new research initiatives and partnerships with industry leaders. This could include joint projects, technology development, and policy analysis, enhancing Vanderbilt’s reputation in the energy sector.
The emphasis on tariff revenues offers an opportunity for Vanderbilt’s Business School to explore the impacts of trade policies on global markets and business strategies. By conducting research and offering educational programs, the business school can position itself as a leader in international trade and economics.
By engaging with the broader policy community and hosting forums on the implications of the bill, Vanderbilt can position itself as a leader in the national conversation on fiscal policy and economic reform. This engagement can further establish Vanderbilt as a hub for innovative policy thought and practice.

Relevance Score: 4 (The bill presents the potential for major process changes required for Vanderbilt’s programs due to funding impacts and policy shifts.)

Average Relevance Score: 2.6

Timeline for Implementation

N/A — After reviewing the text, no explicit implementation deadline or directive timeline is provided.

Relevance Score: 1

Impacted Government Organizations

Department of Health and Human Services (HHS): The extensive welfare reform outlined in the bill will affect agencies under HHS responsible for administering welfare and social services.
Department of the Treasury: The tax cuts and reform measures aimed at reducing the deficit will require coordination with the Treasury for fiscal policy adjustments.
Internal Revenue Service / External Revenue Service: The envisioned shift in revenue collection—from income taxes to tariff revenues—signals significant changes in tax administration, implicating the IRS and its potential evolution into the new External Revenue Service.
Department of Energy (DOE): The directive for the most aggressive energy exploration in American history will involve regulatory and operational roles for the DOE and related agencies.
Department of Homeland Security (DHS) – Customs and Border Protection: The strong border bill component of the legislation directly impacts DHS entities charged with securing the nation’s borders.
U.S. Trade Representative (USTR): The implementation of Trump’s reciprocal tariffs and adjustments to trade policy involves the USTR in managing and enforcing these trade initiatives.

Relevance Score: 3 (Six federal agencies are impacted by the provisions of the bill.)

Responsible Officials

N/A – The article is a press release and legislative commentary with no explicit agency or official directed to implement specific actions.

Relevance Score: 1 (The text does not assign actionable directives to any specific official or agency.)