Big changes loom for GA students under ‘big, beautiful bill,’ leaders say
Georgia’s public schools could face major funding challenges under President Donald Trump’s newly signed “Big Beautiful Bill Act,” according to education leaders who warn the law threatens essential services for students across the state.
Signed into law on July 4, H.R. 1 legislation enacts sweeping federal changes across healthcare, education and tax policy. Critics argue it will disproportionately affect low-income students of all ages and raise the cost of living, while supporters claim it expands school choice and empowers families.
The measure could affect both K-12 and college students, further complicating public school funding nationwide after the Trump administration withheld more than $6 billion in federal education funds on July 1.
Georgia Democrats Sen. Jon Ossoff and Rep. Sanford Bishop both opposed the bill. In a statement, Bishop said the measure will “gut billions of dollars from healthcare, food and other programs as well as add trillions of dollars to the federal budget deficit to pay for tax breaks that overwhelmingly benefit billionaires.”
The U.S. Department of Education and Office of Management and Budget have not responded to The Telegraph’s requests for comment. The White House has published an online guide disputing several claims about the bill, calling them “myths.”
Here is more on how the law is likely to affect education in Georgia:
Healthcare raise alarms over student services
A central concern among Georgia officials is the law’s impact on Medicaid, particularly new eligibility certifications and work requirements that may reduce funding for school-based health services.
Bishop said the law cuts more than $1 trillion from health care over the next decade, including what he called “the largest Medicaid cut ever.”
Georgia school districts rely on Medicaid funds to provide essential services such as physical and mental health care, routine screenings and occupational therapy — particularly for students with disabilities and low-income families. In fiscal year 2024, about 64% of Georgia public school students qualified for free or reduced-price lunch, a common measure of poverty.
Medicaid is Georgia’s largest source of federal revenue, according to the Georgia Budget and Policy Institute.
Ossoff described the law as “a disaster for the state of Georgia.”
“Working and middle-class families in Georgia deserve access to affordable health care and education,” Ossoff said in a statement to The Telegraph. “Medicaid covers vital services in schools, including nursing care and mental health support. By gutting Medicaid to cut taxes for the wealthy, this law threatens children’s health and hurts Georgia’s most vulnerable families.”
Lisa Morgan, president of the Georgia Association of Educators, echoed these concerns.
“When those children do not have access to health care, obviously, their physical health impacts their ability to pay attention and learn in school as well as their ability to attend school,” Morgan said.
State Rep. Larry Walker III (R–Perry), who supports the law, said Georgia is prepared to adapt to any changes that may come regarding Medicaid.
“While I think much of the bill will benefit our education system generally, Georgia’s fiscal efficiency and strong preparedness for contingencies has put our state in a great position to respond to changes in a way that does not disrupt the great education that Georgians expect,” Walker told The Telegraph in a statement.
SNAP cuts will limit access to school meals
Bishop said the law also includes steep cuts to the Supplemental Nutrition Assistance Program (SNAP), with Bishop warning of a proposed 20% reduction that could force states to scale back or eliminate the program.
These changes may ripple into Georgia’s school meal programs. Currently, families receiving SNAP benefits automatically qualify their children for free and reduced-price meals through direct certification, a measurement of poverty levels across Georgia. But the new law could limit this automatic eligibility and increase food costs for families.
The average direct certification percentage for school districts was nearly 63% in the 2023–24 school year, according to the Georgia Office of Student Achievement
“New red tape requirements will cause 5 million people to lose food assistance and put tens of millions of kids at risk of losing school breakfast and lunch,” Bishop said.
The Urban League of Greater Atlanta estimates that up to 382,000 Georgia households with school-aged children could lose food assistance.
Morgan warned that the removal of automatic qualification for SNAP would increase paperwork burdens for schools and potentially result in hungry students missing meals.
In federal fiscal year 2024, more than 1.4 million Georgians — or about 13% of the state population — received SNAP benefits, and 69% of those recipients were in families with children, according to data from the Center on Budget and Policy Priorities.
K-12 voucher program expansion
H.R. 1 reates a national tax credit private school voucher program for states to opt into.
The law also creates a federal tax credit–based voucher program that allows donors to receive a dollar-for-dollar federal income tax credit for contributions to scholarship-granting organizations. While individual donations are capped at $1,700, there is no cap on the overall program.
Students are eligible for these scholarships if they live in households earning no more than 300% of their area’s median gross income.
Morgan said the law’s intent is clear.
“The school vouchers included in the bill will lead to decreased funding for our public schools, simply because taxpayer dollars will be able to go to these private scholarship corporations, and individuals will get a dollar-for-dollar tax credit,” she said. “So that’s less tax dollars available for public schools, and over 90% of the children in our country attend public schools.”
Morgan added that the tax credit structure benefits private donors while reducing funds for public schools already experiencing student enrollment declines and teacher shortages. The Professional Association of Georgia Educators (PAGE) also noted that the law lacks accountability requirements for participating private schools.
Walker, however, said the law strengthens families’ ability to choose the best educational path and builds on the state’s momentum of furthering school choice.
Higher education funding changes
Ashley Young, senior education analyst at the Georgia Budget and Policy Institute, said higher education could be hit even harder than K–12.
The law narrows Pell Grant eligibility, disqualifying students with a Student Aid Index over twice the maximum award or those whose nonfederal aid fully covers college costs. Federal aid like the GI Bill would not affect eligibility.
“Georgia has around 40% of students who are Pell Grant-eligible,” Young said. “When we think about students who are in need and are financially marginalized, Georgia is absolutely bumping up against the top in terms of the percentage of Pell Grant students in the South.
The law also limits how much graduate students can borrow and eliminates the Grad PLUS loan program beginning July 1, 2026, according to the Education Counsel. Many Georgia educators rely on these programs to complete their advanced degrees, PAGE said.
Higher education advocates say eliminating Grad PLUS loans could mean fewer students attend graduate school, which would be a hit to universities that rely heavily on graduate programs for tuition revenue.
Parent PLUS loans were reduced from unlimited to $20,000 per year with a $65,000 lifetime limit per dependent.
“Similarly, capping Parent PLUS loans at $65,000 per student could hurt Black and Latino families, who disproportionately use the loans,” Inside Higher Ed reported.
Sen. Walker expressed confidence in the state’s readiness, predicting Gov. Brian Kemp will monitor and assess the potential changes in Pell Grant access.
“Our consistent conservative funding approach will allow for us to have flexibility and more conversations when we reconvene in the spring. Fortunately, both our Hope and Zell scholarships remain fully funded through the state lottery — protecting merit-based aid even if Pell funding is adjusted,” Walker said.
As the law begins to take effect, state education leaders say they will continue to monitor its impact on schools, families and students across Georgia.