Trump’s “Big beautiful bill” creates political storm in Nevada
Nevada finds itself at the center of a major political battleground as President Trump’s massive domestic spending package begins to reshape the Silver State’s fiscal landscape. The “One Big Beautiful Bill Act,” signed into law last week, is expected to have particularly significant impacts on Nevada due to the state’s unique economic structure and reliance on federal programs.
Major impacts hitting Nevada hard
As many as 100,000 Nevadans could lose Medicaid coverage under the new legislation, according to the nonpartisan Center on Budget and Policy Priorities. The state faces a perfect storm of challenges because Nevada has no state income tax and therefore is extremely limited in how it can find new revenues to replace lost federal funding.
Approximately one in three Nevadans are currently on Medicaid, making the potential cuts especially devastating for the state’s healthcare system. Nevada stands to lose about $590 million in federal Medicaid funding, resulting in more than 114,500 patients losing healthcare coverage.
The legislation introduces new work requirements for Medicaid recipients and restricts how states fund their programs. The work requirement now extends to age 64 and eliminates exemptions for adults with dependent children, meaning parents with children older than 14 are now subject to work requirements.
Gaming industry faces new tax burden
Nevada’s casino industry, a cornerstone of the state’s economy, will be hit by new gambling tax provisions. The legislation caps gambling loss deductions at 90%, meaning someone who wins $100,000 and loses $100,000 would still owe $10,000 in taxes despite breaking even.
Democratic Rep. Dina Titus warned this “pushes people into the black market” because regulated gaming now has a tax disadvantage compared to unregulated gambling. The provision has sparked concerns that it could cause professional gambling in the U.S. to fold.
Mixed results for tipped workers
While Trump touted his “no tax on tips” promise during his Las Vegas campaign events, the reality is more complex. The legislation allows tipped workers to deduct up to $25,000 in tip income from their federal taxes, but only through 2028.
However, economists note that 37% of all tipped workers don’t earn enough to pay federal income tax, meaning they wouldn’t benefit from the deduction. The cap is relatively small and phases out for higher-income workers.
Energy costs expected to rise
Nevada households are projected to spend an additional $270 per year on energy by 2030, rising to over $500 annually by 2035. The legislation eliminates clean energy tax credits and cuts investments in new energy infrastructure.
Nevada claimed more than $137 million in residential clean energy credits in 2024, funds that will no longer be available after the credits expire at the end of 2025.
Political implications for 2026
The timing couldn’t be more significant for Nevada politics. Governor Joe Lombardo is considered the most vulnerable Republican governor up for re-election in 2026, with the Cook Political Report rating the race as a toss-up.
Lombardo narrowly defeated Democrat Steve Sisolak in 2022 by just 1.5 percentage points, and now faces a potential challenge from Democratic Attorney General Aaron Ford, who has expressed his intention to run for governor.
Lombardo has tried to thread the needle politically, celebrating the “no tax on tips” provision while expressing concerns about Medicaid cuts. He was notably one of only seven Republican governors who did not sign a letter supporting Trump’s megabill.
Democratic pushback intensifies
Nevada’s Democratic leaders are mobilizing against the legislation. State Assembly Speaker Steve Yeager vowed to “make sure that every single voter who goes to the ballot box here next year in 2026 knows about this bill and knows about the impact”.
Both of Nevada’s Democratic senators, Jacky Rosen and Catherine Cortez Masto, voted against the bill, with Cortez Masto calling it one that will “raise costs on working families” and “rip health care from Nevadans who need it”.
The legislation’s impacts will unfold over the coming months, with many provisions taking effect before the crucial 2026 midterm elections. For Nevada, a state already balancing on a political tightrope, Trump’s “Big Beautiful Bill” may prove to be the defining issue that shapes the next election cycle.
Image Source: https://www.nbcnews.com/politics/politics-news/biggest-political-fights-trumps-megabill-are-converging-nevada-rcna219368
Category: State News, Politics
Subcategory: Tax Policy
Date: 07/21/2025
