How the “One Big Beautiful Bill” Will Impact Mental Health Care

On July 4, 2025, the One Big Beautiful Bill (OBBB) became law—an extensive reconciliation package that introduced massive cuts to federal health programs. As a therapist, it’s critical to understand how this legislation threatens access to care, especially for clients relying on Medicaid and other supports for mental health.

What the Bill Does to Healthcare Programs

  • Medicaid funding will face about $1 trillion in cuts over the next decade, threatening coverage for vulnerable communities ( mmhla.orgNASHPWikipedia).

  • As a result, 11 to 17 million people are projected to lose health insurance, according to both Yale and University of Pennsylvania analyses ( The Daily BeastTIME).

  • 300 rural hospitals may close immediately, with up to 700 more at risk—leaving rural residents with limited access to care Kiplinger.

  • Although OBBB includes a $50 billion rural health fund, it’s insufficient to offset the deep cuts and requires states to apply and plan strategically

Medicaid is a lifeline for clients who depend on subsidized therapy, medication, and psychiatric services. Losing coverage means losing access to continuity of care. Early-career therapists, community clinics, and those in underserved areas may lose funding and capacity—reducing available appointments and resources. Also, the most vulnerable c;ients—especially Black women, femmes, queer, and other marginalized clients—may feel re-traumatized by systemic devaluation of care

As a therapist, I’m addressing these changes by continuing to check-in with clients how they’re processing the ongoing changes led by the current political administration. That means also increasing access for uninsured or under-insured clients through sliding scale fees, groups, and workshops. For instance, The Mending Space Therapy is now offering low-fee sliding scale appointments slots with our counseling intern.

Cuts to Medicaid and mental health care aren’t just budget decisions — they’re profound violations of our collective health and humanity. As therapists, our work of healing, resistance, and relational justice matters now more than ever. If you’re navigating these shifts, we’d certainly love to support you. Complete a new client questionnaire or call to schedule an appointment.

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