The Best Part Of The One Big Beautiful Law
OBBB cuts $1 trillion in federal transfers, empowering states to control Medicaid and more…
🕒 Read Time: 3 minutes
The Start of a Much-Needed Realignment
The One Big Beautiful Law (not a bill anymore!) deserves careful examination. This comprehensive legislation encompasses tax cut extensions and substantial investments to address illegal immigration, measures of considerable importance. Yet, for those who believe the Constitution means what it says, the most exciting aspect remains the transfer of power and responsibility to the states. By reducing $1 trillion in federal transfer payments over a decade, the OBBL places Medicaid and other programs under state control, restoring the federalism our founders intended and bringing governance closer to accountability.
California’s Moment of Accountability
California’s state government now confronts a significant challenge. The reduction of federal Medicaid funds could leave millions without government-funded coverage (of course, a substantial percentage of these people would be non-disabled people of working age who now face a modest work requirement of working half-time). State officials express concern that California’s stretched budget cannot fully replace these funds. This represents not a crisis but an opportunity for fiscal discipline. Years of dependence on federal dollars have hidden inefficiencies, with pandemic-era spending on questionable programs depleting reserves. This is without getting into the massive waste, fraud, and abuse (think HSR, UI fraud, healthcare for illegals). The governor and legislature must prioritize essential services, or else, I suppose they they could raise taxes. But they better be ready to answer to voters for that decision.
The Founders’ Vision Restored
The OBBB respects the founders’ blueprint for limited federal government. In Federalist No. 45, James Madison wrote the quote below…
“The powers delegated by the proposed Constitution to the federal government are few and defined. Those to remain in the State governments are numerous and indefinite.” James Madison
In Federalist No. 17, Alexander Hamilton added that domestic affairs “will always be more likely to be well administered by the local than by the general government.” This law draws starts to pull Washington back, empowering states to govern where citizens feel the impact most directly.
A Blueprint for Reform
Congress should expand upon this transformation. Programs like student college loans, community development block grants, education funding, and, yes, even grants for public safety operate outside the Constitution’s enumerated powers in Article I, Section 8. If a power is not listed, it belongs to the states or the people. Rightsizing the federal government would typically reduce taxes for Americans, but the $37 trillion national debt demands immediate attention. These savings must tackle the budget deficit, creating the foundation for future tax relief.
With OBBL on the books, Priority #1 is the National debt
At $37 trillion, the national debt weighs heavily on every citizen. Under normal circumstances, shrinking federal programs would reduce the tax burden, returning more money to Americans. The states must be prepared to take what is theirs under the Constitution. States like Florida, with careful reserves, demonstrate that discipline remains achievable. After reckless spending, California’s legislature and governor face more difficult choices. This shift ensures resources receive wise stewardship, creating the path for tax cuts once fiscal stability returns.
State Governments Face the Heat
The OBBL’s genius lies in its accountability structure. State governments, including governors and legislatures, now own the results but also have the freedom to tailor programs for their individual states. In California, Sacramento cannot hide behind federal mandates. Decisions to cut programs or raise taxes will face voter examination. This decentralization aligns policies with local needs, not Washington’s directives. State governments can innovate or fail, but will answer to their citizens, not bureaucrats.
The Constitutional Path Forward
The OBBL represents a bold first step, not a complete solution. It challenges the assumption that Washington must solve every problem. State governments, closer to their citizens, are better positioned for domestic challenges. Congress should continue evaluating federal programs against the Constitution’s limits. The goal remains a leaner government that respects its boundaries, reduces debt, and eventually lowers taxes. Federalism is a principle and the foundation of a free and accountable nation.
As the Disney character from the Star Wars universe the Mandolorian likes to say. “This is the way.”
Hungry for a more intellectual presentation of the 10th Amendment and federalism?
Amendment X: Our Constitution a Grant of Limited Powers to the National Government
This is an essay by an esteemed constitutional scholar, Dr. John S. Baker, Jr.