The One Big Beautiful Bill was signed into law on July 4. And although it remains controversial, it is now in effect. So, how could it hit our wallets?
#1: Health care costs – The bill includes work requirements for Medicaid recipients. Those with care under the Affordable Healthcare Act will face higher deductions and more verification requirements. The Congressional Budget Office estimates that over 16 million people will lose benefits by 2034.
#2 Tips and overtime – Workers receiving tips or overtime could benefit from the bill’s increased federal tax deduction. However, those benefits come with income caps and end in 2028. Tips and overtime are still subject to state income tax.
#3 Food Access – The bill slashes funding for SNAP, or food stamps. Though fewer Black people than white people receive food stamps, the bill snatches food access away from groups such as children aging out of foster care, veterans, and the unhoused, groups in which Black Americans are disproportionately represented.
The income changes take effect immediately, The Medicaid work requirements will be in place by the end of 2026. The funding changes to Medicaid and SNAP will not be fully implemented until 2028.