What CPG Leaders Should Know About H.R. 1, the 'One Big Beautiful Bill'
- Hardik Shah
- Jun 7, 2025
- 4 min read
From grocery aisles to factory floors, few industries are as closely intertwined with federal policy as consumer packaged goods (CPG). The recently passed H.R. 1 in the House, dubbed the "One Big Beautiful Bill," brings sweeping reforms across nutrition assistance, taxation, environmental regulation, trade, and agricultural policy. Clocking in at more than 1,000 pages, the bill is dense and complex. We break it down with a nonpartisan, fact-based lens to help CPG leaders understand what matters most.
While the bill still faces the Senate, where significant revisions are possible, it's worth understanding how its current form could affect the CPG landscape. Regardless of one’s political preferences, this bill offers a glimpse into the current House majority's vision for economic and regulatory restructuring. The House, with its relatively short electoral cycles, often leans toward fast-acting, high-visibility policies. The Senate, by contrast, is known for a longer-term perspective that often tempers immediate political impulses. Ultimately, what passes into law may look different—but the direction of travel is clear.
Below is a breakdown of the key themes in H.R. 1 and why they matter to consumer brands, manufacturers, and retailers alike.
1. SNAP Reforms: Potential Pressure on Value-Based Demand
The bill implements several cost-control and eligibility reforms to the Supplemental Nutrition Assistance Program (SNAP):
Increases work requirements for able-bodied adults without dependents (ABAWDs) up to age 65
Narrows waiver authority for states, allowing exemptions only in counties with over 10% unemployment
Shifts 5% of benefit costs to states starting in 2028
Reduces administrative cost sharing (from 50% to 25%)
Repeals nutrition education and obesity prevention programs
Why it matters: These changes may reduce the SNAP-eligible population and benefits disbursed. This could hit retailers and brands serving price-sensitive consumers, especially in rural or low-income communities. SNAP benefits are a critical demand channel for many shelf-stable and staple CPG categories.
2. Environmental Deregulation: ESG Headwinds Ahead
H.R. 1 eliminates or rolls back dozens of sustainability programs:
Repeals the Greenhouse Gas Reduction Fund and low-emissions electricity initiatives
Rescinds funding for diesel emissions reduction, port pollution mitigation, and environmental justice block grants
Terminates support for greenhouse gas reporting, clean heavy-duty vehicle grants, and low-carbon product labeling
Why it matters: CPG companies investing in low-carbon logistics, sustainable packaging, or facility upgrades may see a drying up of federal support. While deregulation could reduce compliance costs, it could also slow collective progress on ESG goals, potentially impacting investor expectations and supply chain partnerships.
3. Tax Provisions: A Mixed Bag for CPG Operators
The bill reintroduces and extends many Trump-era tax cuts:
Continues bonus depreciation and expanded expensing for manufacturing assets
Enhances deductions for employer-provided childcare and family leave
Allows 20% passthrough deduction to continue
Expands Opportunity Zones and raises thresholds for small manufacturers
Simultaneously, it removes or phases out:
Clean energy and EV credits
Energy-efficient property deductions
Carbon sequestration incentives
Why it matters: CPG firms investing in automation or rural operations may benefit from tax savings, boosting ROI on capex. However, those focused on sustainable infrastructure or electrified fleets may find fewer incentives to support long-term initiatives.
4. Trade & Supply Chain: Subtle Shifts with Big Consequences
The bill includes measures to reshape sourcing and cross-border logistics:
Adds a Supplemental Agricultural Trade Promotion Program
Eases permitting for domestic oil and gas production, potentially impacting fuel costs
Tightens customs enforcement and modifies de minimis entry rules for imports
Why it matters: These provisions may marginally lower energy and domestic transportation costs, benefiting supply chains. However, tighter import rules could affect CPGs relying on small-package cross-border shipments or overseas contract manufacturers.
5. Rural & Agricultural Support: Strong Tailwinds for Domestic Sourcing
The bill invests significantly in the U.S. agricultural base:
Raises reference prices for major commodities like wheat, corn, soybeans, and peanuts
Allows up to 30 million new base acres to be allocated
Extends Price Loss Coverage and Agriculture Risk Coverage through 2031
Incentivizes rural manufacturing via tax credits and loan access
Why it matters: These changes could stabilize the cost and availability of key agricultural inputs, especially for food and beverage brands sourcing domestically. A more resilient rural economy also supports distribution, warehousing, and upstream production.
What to Watch Next
The Senate will likely revise the bill, with attention to long-term cost impacts and bipartisan palatability.
CPG companies should prepare scenario-based planning tied to SNAP enrollment shifts, ESG funding changes, and tax flexibility.
Regardless of the final shape of the legislation, H.R. 1 signals regulatory momentum that industry leaders cannot afford to ignore.
Bottom Line
The "One Big Beautiful Bill" is not yet law, but it paints a clear picture of the policy and economic priorities emerging from the House. For CPG leaders, this is a timely opportunity to evaluate potential impacts, model scenarios, and stay connected with key partners across the value chain. Whether you're launching a new product or scaling operations, policy developments like this are part of the broader business context.
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