Why the budget law is tailored to help Ohio families
“Where I land on policy always depends on how it affects people in Ohio.” That’s what I wrote earlier this year, and that’s why I supported the bill that extended the 2017 tax cuts and made urgent investments in our national defense and border security.
This budget bill saved Americans from a $4 trillion tax hike, and that’s a significant win for the nation. So, what does the Big Beautiful Bill mean, in real world terms, for Ohio families, workers, and taxpayers?
Our work results in more take-home pay. Specifically, the tax cuts we cemented for workers and job creators will leave the average household in Ohio with an estimated $7,000 or more in take-home pay. We made no tax on tips or on overtime a reality and increased the child tax credit to $2,200 per child. That increase alone benefits 1.3 million Ohio families.
More than 5 million Ohio families also rely on the standard deduction, so we made that deduction permanent and increased it for couples and single filers. We remembered Ohio’s seniors, too, by expanding their annual deduction.
Standing by while the 2017 tax cuts expired would have devastated Ohio family budgets. The average American family of four earning $80,000 would have owed an extra $1,700 in federal taxes, but the savings we delivered for an Ohio household is even bigger: $2,140 on average.
Our work is creating more jobs. Thanks in part to the policy changes Ohio made while I was House Speaker and lieutenant governor, Ohio is now one of America’s top five best states in which to do business. But we can’t take that for granted, so I voted to protect the 20% small business deduction because nearly all of Ohio businesses are organized as small businesses.
If we hadn’t, 842,000 Ohio job creators would have lost their small business tax deduction, making it harder for them to keep their doors open and Ohioans on pay roll. This part of the law is alone projected to create 1.2 million new U.S. jobs each year for the next decade, and 2.4 million more each year after that.
Manufacturing is important: A made-in-America economy isn’t possible without massive contributions that are made in Ohio. To that end, I made sure this legislation gave job creators the freedom to immediately expense investments in new factories, in capital investments, in machinery and equipment, and in research and development. All of these advantages boost manufacturing states like Ohio.
For decades, I’ve focused on making Ohioans career-ready. I supported this bill in part because it mirrors other legislation I’ve cosponsored by allowing federal Pell Grants to help Ohioans earn workforce credentials that land good jobs. It also provides a school choice tax credit. Ohio has proven that kids succeed when their parents can choose schools that serve their individual needs well, so this bill honors Ohio families’ wisdom and freedom.
Across all sectors, economists estimate that Ohio wages will increase at least $5,000 on average because of this budget law. Ohioans will have more take-home pay and more health care resources, too.
This package is sending more Medicaid dollars and more support for rural hospitals to Ohio than ever before. Ohio has, historically, taken a more responsible approach to Medicaid than other states have.
That means that Ohio taxpayers have been subsidizing states like California, who take more than their share of federal Medicaid dollars and funnel them to illegal immigrants and other priorities that don’t serve Ohioans. This budget law leveled the playing field in Ohio’s favor.
First, we made sure Ohio could raise its provider tax rate, which governs our Medicaid reimbursements, by 60%. We also secured a way for Ohio’s Medicaid providers to get reimbursed 24% more than they have been on average. As a result, Ohio will be taking in more Medicaid money from that stream, too.
That money doesn’t include another priority that I worked to include in the law–a rural health transformation fund that invests $50 billion over the next five years. Ohio’s first of several windfalls from it will be $1.3 billion, and our rural hospitals have thanked us for making this a reality–repeatedly.
Not only is overall Medicaid funding going to keep increasing at 3% each year–despite inaccurate claims to the contrary–changes like these mean Ohio itself will experience a net gain in federal dollars. At the same time, Ohio taxpayers will see less of their hard-earned money funneled to illegal immigrants and fraud that other states have tolerated.
We also protected Medicaid for children living in poverty, those living with disabilities, caretakers, and the elderly. Don’t be afraid of the lies–the truth is that no one Medicaid was designed to serve will see their benefits cut. This law protects them by sustaining this program in the long run. Even its modest work requirements enable adults who can work to keep getting their generous Medicaid benefits in exchange for giving back to their communities part-time.
This law makes communities safer in Ohio by funding security measures at the southern border and on Lake Erie. Failing to enforce our laws has let accused murderers live in Ohio illegally. Our work will help law enforcement locate more criminals and get them out of Ohio neighborhoods.
Ohio’s defense industry has always done its part to keep America secure, but China, Iran, Russia, and North Korea are more aggressive than ever. The Big Beautiful Bill keeps America strong by investing hundreds of millions of dollars in Ohio manufacturers that produce next generation weapons. We’re safeguarding Americans by deterring–and, if necessary, defeating–our enemies.
We’re also safeguarding the future by lowering the deficit. The Congressional Budget Office reviewed the law and found that it would decrease deficits by $366 billion. Right now, U.S. taxpayers are shelling out $1 trillion a year just to pay for the interest on our debt, and that’s driving up inflation. To help pay for our current debt and the benefits we protected, the law keeps taxes on billionaires at the same level they were under Pres. Biden.
Ohio’s interests drove my work on and support for this bill from start to finish, and the results are clear: More jobs, lower taxes, higher wages, and more Medicaid dollars for Ohio means more confidence and certainty for everyone who calls our state home.
This op-ed by Sen. Jon Husted (R-Ohio) appeared in Ohio publications, including The Columbus Dispatch, Alliance Review, Canton Repository, Ashland Times-Gazette, and The Cincinnati Enquirer on July 25, 2025.