House Republicans grappling with Trump's extensive tax and immigration legislation, finding it challenging to secure a majority vote
With its colossal title, the "One Big, Beautiful Bill Act," this behemoth legislation tickles President Trump’s campaign promises, covering anything from taxes to border security. Here's a peek at possible effects this bill might have on regular folks, according to recent estimations.
Keep in mind, the Senate is bound to make significant alterations to this bill, and the nonpartisan Congressional Budget Office (CBO) continues to evaluate the legislation.
Let's jump right into potential changes related to Medicaid, SNAP, taxes, and border security.
### The new-agework-requirement dance for Medicaid *###
Republicans are dead set on slashing "waste, fraud, and abuse" within Medicaid, the health care program for low-income Americans and those with disabilities. Their strategy? Achieving hundreds of billions in savings over the next decade.
Early estimates requested by Democrats suggest more than 8 million individuals could lose coverage, but keep in mind, this number fluctuates, and the CBO hasn't released its final review of the GOP bill.
Under the proposed bill, able-bodied Medicaid recipients aged 19-64 without dependents must work at least 80 hours per month or face losing coverage. Additionally, states are expected to conduct eligibility reevaluations every 6 months.
This legislation also removes undocumented immigrants from Medicaid eligibility, affecting approximately 1.4 million people. However, the work requirements won't apply until 2029, but some House Republican hardliners wish to bring that date forward to 2026 or 2027.
It's also worth mentioning that there will be increased copays for Medicaid recipients earning above the federal poverty limit, including a $35 copay during some visits. Furthermore, expect more extensive Medicaid paperwork for income and residency verification as Republicans aim to crack down on those "double-dipping" in multiple jurisdictions.
### Snackless Sundays, maybe? The SNAP dance *###
The bill tightens eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP). Changes could indirectly impact school lunch programs, requiring some previously eligible families to apply for access and affecting federal reimbursement payments for certain school districts.
### Tipping off your paycheck *###
The bill offers a tax break to workers who receive tips, as long as they make under $160,000 annually. The tax exemption, however, expires at the end of 2028.
### Making tax cuts perky permanent *###
The bill makes permanent tax cuts from the 2017 Tax Cuts and Jobs Act criticized by fiscal hawks for adding trillions to the deficit over the next decade. It does not include a tax increase for the wealthiest earners, according to Trump's recent posts.
### Time for MAGA savings accounts for your little ones *###
The bill proposes creating MAGA savings accounts that parents can open for their children, with a yearly contribution limit of $5,000. Starting accounts with $1,000 in pilot programs is included in the proposal.
### Raising the SALT cap *###
The bill raises the deduction limit of state and local taxes from your federal income tax filing from $10,000 to $30,000 for joint filers earning less than $400,000 annually. Representatives from states such as New York and California are campaigning for an increase in the cap to better support their constituents.
On the campaign trail, Trump pledged to eliminate the SALT cap originally imposed by the 2017 tax law he signed during his first term.
### More moolah for border security enforcement *###
The bill provides nearly $50 billion for reviving construction of Trump's border wall and changing immigration policy. Key components include the following:
- Border patchwork: $4 billion for hiring additional 3,000 Border Patrol agents and 5,000 customs officers.
- Incentives: $2.1 billion for signing and retention bonuses.
- ICE strength: $2.1 billion for 10,000 more Immigration and Customs Enforcement officers and investigators.
It's worth noting that the bill also includes a $4 trillion increase to the statutory debt limit. Treasury Secretary Scott Bessent has urged Congress to act by the end of July.
- The bill proposes significant changes to Medicaid, with Republicans aiming to save hundreds of billions over the next decade by reducing "waste, fraud, and abuse." This could potentially result in over 8 million individuals losing coverage.
- Under the new bill, able-bodied Medicaid recipients aged 19-64 without dependents would be required to work at least 80 hours per month to maintain coverage, with states expected to conduct eligibility reevaluations every 6 months.
- Undocumented immigrants would no longer be eligible for Medicaid under the proposed bill, affecting approximately 1.4 million people.
- The bill adds increased copays for Medicaid recipients earning above the federal poverty limit, including a $35 copay during some visits, and more extensive Medicaid paperwork for income and residency verification.
- The bill includes funding for border security, with nearly $50 billion allocated for constructing Trump's border wall, hiring additional Border Patrol agents and customs officers, and increasing the number of Immigration and Customs Enforcement officers and investigators.
