Indiana State Representative Lonnie Randolph (District 2, East Chicago) is sounding the alarm about a sweeping federal proposal he calls “the largest reduction of federal entitlement programs in U.S. history,” warning that the so-called “Big Beautiful Budget Bill” would deliver devastating consequences to working families in Indiana.
In a detailed statement posted to the social media platform X, Randolph, who represents East Chicago and parts of Lake County, outlined how the bill would gut essential programs that Hoosiers depend on, while delivering massive tax benefits to the ultra-wealthy. Citing nonpartisan estimates, Randolph stated that the legislation would push millions off Medicaid, threaten food assistance for thousands, and undermine years of environmental progress—all while adding $3.4 trillion to the national debt.
“It’s a disaster for working Hoosiers,” wrote Randolph. “This bill forces hard-working people off their health insurance, makes food harder to afford, cuts support for rural hospitals and public health—and gives nothing in return except tax breaks for people already at the top.”
Health Care: Cuts That Put Lives at Risk
Randolph noted that more than 2 million Hoosiers are covered by some version of a Medicaid plan. This bill:
• Forces adults aged 19 to 64 in Medicaid expansion to meet new work-reporting rules, even though 92 percent are already working or exempt. These new requirements would push 5.2 million Americans off Medicaid by 2034.
• Adds $35 per-visit fees for surgeries, ER visits, imaging and specialist care—penalizing patients for seeking help.
• Caps federal provider tax programs like Indiana’s Hospital Assessment Fee (HAF), potentially stripping $640 million annually from Medicaid reimbursements that keep hospitals open—on top of Indiana’s existing $2.4 billion budget shortfall.
The result is Hoosiers will either lose health coverage or see their care options vanish as hospitals buckle under financial strain.
Food Assistance: Less Help, More Hoops
Nearly 590,000 Hoosiers rely on the Supplemental Nutrition Assistance Program (SNAP)—most are kids, seniors or low-wage workers. Randolph said this bill:
• Cuts the federal government’s share of SNAP administrative funding from 50% to 25%, leaving Indiana to pay the other 75%. That’s an extra $46–50 million per year.
• For the first time ever, it requires states to help pay for actual SNAP benefits. With Indiana’s payment error rate over 8%, the state could owe up to $216 million per year.
• Shrinks eligibility, narrows exemptions and expands work requirements—meaning thousands of Hoosiers will lose food assistance even when they qualify.
• Slashes funding for nutrition education and locks SNAP increases to inflation only, ignoring the actual cost of groceries.
“These changes will result in fewer Hoosiers eating dinner, more bureaucratic red tape, and up to $190 million in new state costs with no path to pay for them,” Randolph stated.
Tax Policy: A Gift to the Rich
According to Randolph, the bill delivers massive tax benefits to the wealthy while nearly 30% of Indiana families are left behind. Among the most controversial provisions:
• Raises the estate and gift tax exemption to $15 million
• Expands the Child Tax Credit to $2,200—but only gives the full amount to families earning over $41,500
• Expands the SALT deduction cap from $10K to $40K, which helps wealthier households in high-tax states. But in Indiana, only 5% of households even claim SALT deductions, with an average benefit under $8,000
In Indiana, where more than half of all households earn under $55,000 per year, Randolph called these provisions “a direct transfer of wealth away from the working class.” The result? Working families lose care and food assistance so billionaires can pass on more wealth—and the national debt still goes up by $3.4 trillion.
Energy and Environment: Progress Reversed
The bill includes sweeping environmental rollbacks:
• Wipes out unspent Inflation Reduction Act funds for clean energy, environmental protections and data systems.
• Weakens methane pollution rules and removes clean energy priorities from federal energy projects.
• Requires new fossil fuel and lease sales—including on federal lands near Hoosier communities and national forests.
The result is “Higher pollution, slower grid modernization and less protection for Hoosier farmers and families—that’s the price we’ll pay,” he wrote.
What’s the Bottom Line: It Hurts the People Who Can Least Afford It
In a state where more than 55% of households earn less than $55,000/year, this bill arrives at a time when many can least afford additional hardship. It:
• Forces hard-working Hoosiers off their health insurance
• Makes food harder to afford
• Cuts support for rural hospitals and public health
• And gives nothing in return—except tax breaks for people already at the top
Calling for a Public Hearing
Randolph, who serves in the Indiana Senate’s Democratic caucus and has been a vocal advocate for equity and working-class families throughout his career, is demanding that the Indiana General Assembly hold public hearings within 30 days to fully assess the bill’s impact. He is asking that representatives from the Family and Social Services Administration (FSSA), the Indiana Department of Health, state budget officials, hospital systems, and everyday Hoosiers who are directly impacted by these changes be given a platform to speak.
A respected legal professional and long-time public servant, Randolph has authored numerous bills focused on economic justice, health care access, and civil rights. His legislative accomplishments include bills expanding eligibility for expungement of criminal records, strengthening public health infrastructure, and increasing state oversight on housing foreclosures and predatory lending practices.
Randolph has warned that unless public pressure builds, Indiana’s most vulnerable residents will bear the brunt of a budget that benefits only a wealthy few.
“In a state where so many are already struggling, this bill could not come at a worse time,” he said.