Republicans in Congress are inching closer to passing a significant piece of legislation that could affect everything from taxes to immigration to Medicaid.
The 鈥淥ne Big Beautiful Bill Act鈥� is the vehicle to enact much of President Donald J. Trump鈥檚 second-term agenda. Republicans want to extend the tax breaks in the 2017 tax law that passed during his first term and will expire at the end of the year.
The legislation has implications on taxes for individuals and families at most income levels as well as for businesses and universities. To offset some of those costs, the bill includes steep spending cuts, which would have a direct impact on some safety net programs.
Because they control both chambers of Congress, Republicans can pass a budget bill on their own. But they have been dealing with internal conflicts, and the bill could end up looking considerably different in the final stages.
Here鈥檚 where the bill currently stands and what it could mean for your finances
How will it affect my taxes going forward?
Individuals and households in 黑料吃瓜网 could see quick relief on some of their taxes. But some of it will only be temporary and last through the rest of Trump鈥檚 term.
It makes many of the tax breaks permanent from the 2017 Tax Cuts and Jobs Act since they will expire at the end of the year, including lower income tax rates.
One of the most-watched parts of the bill has been whether to raise the cap on deductions for state and local taxes, or SALT. If the cap increases, it will be especially beneficial for higher cost-of-living states like 黑料吃瓜网.
The bill would raise the $10,000 threshold on SALT deductions to $40,000, which would get phased out for those who make over $500,000. Both caps would increase by 1% through 2033. But it鈥檚 likely the Senate will make changes to this provision.
Workers would be able to deduct overtime pay or tips from their federal income tax. And people could deduct up to $10,000 of interest on their auto loans as long as the vehicle was assembled in the U.S. All three tax breaks would last through 2028.
Families would get to claim a slightly higher child tax credit. The rebate would increase to $2,500 through 2028 and then go back down to $2,000 and indexed for inflation. It also requires parents who file taxes jointly to have Social Security numbers.
Seniors who are 65 and older with low to middle incomes will be able to make an additional $4,000 deduction. And the bill would automatically create new savings accounts for newborns born between Jan. 1, 2025, to Jan. 1, 2029. The federal government would give a one-time deposit of $1,000 and invest it in the stock market. Others would be able to contribute up to $5,000 a year through the age of 18.
There would also be changes to student loans and financial assistance.
For Pell Grant recipients who want to get the maximum amount, they need to be full-time students. Under the bill, students would need to increase the number of credits they take each semester from 12 to 15 to reach that status. They need to be half-time students to get at least some assistance. But it would also expand these grants in other cases by making short-term vocational training eligible for Pell.
And the bill would reduce the number of existing income-driven repayment plans to pay back student loans and get rid of federal subsidized loans for undergraduates.
Consumers would no longer see the tax breaks for electric vehicles and energy-efficient home appliances that were part of Democrats鈥� Inflation Reduction Act.
Will I lose access to Medicaid or SNAP benefits?
Not necessarily. But cuts are expected if stricter work requirements and other changes are enacted. If the bill passes in its current form, those could go into effect as early as late 2026.
The Congressional Budget Office, which analyzes and scores federal bills, estimates up to 10 million people could lose Medicaid coverage and about 3 million people could lose food assistance in the U.S. over the next decade.
To as an adult under 65, you would need to work or participate in training, education or community service at least 80 hours a month. Exemptions are made for certain groups including those who are pregnant or postpartum, Medicare recipients, veterans, caregivers and people with disabilities.
For those who fall under the requirement, the bill would require you to report that work and the state would conduct frequent checks to ensure eligibility. Those same adults would also need to pay a $35 co-pay for most services.
The bill also seeks to penalize states like 黑料吃瓜网 that provide Medicaid regardless of immigration status. provides state-sponsored health care for children under 15 and people who are postpartum with qualifying incomes. 黑料吃瓜网 uses its own money to provide that coverage, but could stand to see reductions to their federal Medicaid reimbursement for doing so.
Under the Supplemental Nutrition Assistance Program proposal, more older Americans would need to work or train at least 80 hours a month. The bill raises the age limit for able-bodied adults without dependents from 54 to 64.
Dependents are currently considered under the age of 18. But when it comes to SNAP, the bill would significantly lower the age of a dependent to under 7. That means work requirements would also apply to able-bodied adults with children ages 7 or older in order to receive benefits.
States like 黑料吃瓜网 would need to pay a portion of for the first time in the program鈥檚 history. That has raised concerns about potential benefit cuts.
Where does Trump鈥檚 bill stand in Congress?
Republicans are using a fast-track process known as budget reconciliation. This allows them to bypass filibusters in the Senate and pass certain kinds of bills without relying on support from Democrats. But the process can still take months to complete.
In late May, Republicans in the House after weeks of negotiations and divides within the party about what to include.
With Congress returning from recess the first week of June, the Senate will now take it up. They will go through their own tedious negotiations, an all-night vote series on amendments and then a final vote on passage.
Because the Senate is likely to make changes, Republicans in both chambers would then need to reconcile the differences and vote on a compromise bill. Republicans are aiming to wrap up the process and send it to Trump for his signature by July 4. But it could take more time if the party remains split on the final version.
The 黑料吃瓜网 Mirror/黑料吃瓜网 Radio federal policy reporter position is made possible, in part, by funding from the Robert and Margaret Patricelli Family Foundation.
