Arnold Ventures Issues Statement on House Passage of Reconciliation Bill

WASHINGTON, D.C. (May 22, 2025) — Arnold Ventures President and CEO Kelli Rhee issued the following statement after the House of Representatives passed The One Big Beautiful Bill:

“Even before the 2024 election, Arnold Ventures was clear in its position that the pending expiration of the Tax Cuts and Jobs Act (TCJA) presents both a challenge and an opportunity. While the House bill makes some progress, it does not go nearly far enough to adopt pro-growth policies that also address the national debt. 

“The numbers speak for themselves. Last year’s federal deficit reached $1.8 trillion, and our cumulative national debt is about to surpass the size of our entire GDP. Rising interest payments now exceed what the country spends on defense or Medicare. Further, the consequences of mounting debt — from bond market volatility to rising costs of living — are being felt by families and businesses nationwide.

“There are several bright spots in the legislation. The bill closes costly tax loopholes, strengthens program integrity, and avoids some of the most egregious scorekeeping tactics. In health care, the bill takes steps to rein in state-directed Medicaid payments. In higher education, it caps graduate student lending, calls for accountability for institutions, and streamlines the unwieldy student loan repayment system. 

“Yet there are also serious shortcomings. The bill increases Medicare drug prices and misses key common-sense opportunities in health care that would generate meaningful savings for taxpayers and lower health care costs for seniors and the disabled without reducing coverage, such as site-neutral payment reform and reductions in overpayments to Medicare Advantage plans. It repeals important, cost-saving student protection rules and expands Pell Grants to unaccredited providers, raising risks for students. It also sacrifices pro-growth tax policies in favor of creating new loopholes and special-interest giveaways — with the result being the legislation will not foster the economic growth necessary to make the budget numbers add up. America cannot afford to ​‘extend and pretend,’ relying on short-term extensions and budget gimmicks that threaten long-term stability. We appreciate the leadership of many in the House for their commitment to ​‘hold the line’ on a fiscally responsible package. 

“As the Senate takes up this bill, we urge lawmakers to adopt a package that is fiscally sound, structurally smart, and worthy of the President’s signature. Responsible reform, paid for through smart improvements to government programs, is not just possible, it is the right path forward. To that end, earlier this year Arnold Ventures released a report identifying 20 policy options — from spending cuts to tax loophole closures — that could save up to $4 trillion. These reforms would allow Congress to extend key TCJA provisions without adding to the national debt. There are clearly good pathways available – but the time to act is now, before it is too late.”