Here are the key details, what's changing, and how it could affect you.

Work Requirements for SNAP and Medicaid

One of the most controversial aspects of the new law is the imposition of new work requirements to access federal assistance programs, especially for those who receive Medicaid (health insurance for low-income people) and SNAP (food stamps).

By the end of 2026, childless adults without disabilities who receive Medicaid must work at least 80 hours a month. Failure to meet this requirement could result in the loss of their health coverage.

The law also expands the group of people who are required to work to continue receiving SNAP coupons. Until now, this rule only applied to childless adults between the ages of 18 and 54. The change will also include people up to 64. This could make it difficult for many older adults who are not yet retired and who face challenges finding jobs to access food.

Tax Changes: More Deductions for Some, Fewer Benefits for Others

The law seeks to make permanent the tax cuts that Trump approved in 2017. This would primarily benefit high-income individuals and businesses, but there are also some changes that could favor certain groups:

Tips and overtime will be exempt from federal taxes, which could ease the tax burden for service sector workers. However, an official list of occupations that will be eligible for this benefit is still awaited.

Middle-income seniors will be able to deduct up to $6,000 on their tax returns. This benefit applies to people 65 and older who earn less than $75,000 a year ($150,000 for a couple). After that amount, the deduction begins to decrease until it disappears completely for higher incomes.

But there are also important eliminations of tax incentives, especially for those looking to adopt green technologies. Starting in September 2025:

These reductions may discourage those looking to reduce their environmental impact and save energy at home.

Changes to the Child Tax Credit

The new law permanently increases the child tax credit to $2,200 for each dependent child. This represents an increase from previous levels and could provide additional support for families with dependent children. However, access to extremely low-income families who often don't qualify for the full credit has yet to be expanded.

The SALT deduction will increase (for a time)

The threshold for deducting state and local taxes from federal income taxes, known as SALT, will increase significantly:

This change especially benefits high-income earners in high-tax states like New York and California.

End to Biden's student loan forgiveness

The law also brings important changes for those who have student loans. Current income-driven repayment plans will be eliminated, and two new options will be added:

In addition, President Biden's SAVE plan, which offered lower monthly payments and faster forgiveness, will be eliminated. This plan is currently blocked by the courts, but this law would end it entirely.

“Trump” Accounts for Newborns

Among the news that this “Big Beautiful Bill” has and that will directly benefit several first-time households with extra money is the creation of the so-called “Trump accounts,” formerly known as MAGA accounts (Money Account for Growth and Advancement).

Every baby born in the US between January 1, 2025, and December 31, 2028, will receive $1,000 from the government.

The money must be invested in an approved index fund and cannot be withdrawn until the child turns 18.

Parents or relatives will be able to make additional contributions of up to $5,000 per year.

The accounts will have tax benefits: tax-deferred earnings and a preferential tax rate when the money is withdrawn.

This program seeks to encourage long-term savings, although it will not benefit those who have children before or after the stipulated period.

With all of these changes, both those specified here and those that extend to other areas of government policy and budgeting, such as the $150 billion budget to increase immigration enforcement, the "Big Beautiful Bill" could increase the federal deficit by at least $3.3 trillion, according to the Congressional Budget Office (CBO).

For its part, Moody's Analytics warned that extending the 2017 tax cuts could increase the deficit by an additional $4 trillion over the next decade.

This could translate into higher interest rates for mortgages, student loans, auto loans, and credit cards, affecting access to credit for millions of households.

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