One year in, the damage is measurable
President Trump signed the One Big Beautiful Bill Act on July 4, 2025. The CBO scored it at $3.4 trillion in new deficits over the next decade. It cut $863 billion from Medicaid and $186 billion from SNAP while permanently extending the 2017 tax cuts.
One year later, the first provisions are taking effect. Here are the ten that matter most, in plain English.
The 10 provisions
1. Medicaid work requirements
Adults ages 19-64 on Medicaid expansion must work or volunteer 80 hours per month to keep coverage. Deadline: December 31, 2026 for all states, though some states started early. CBO projects 5.3 million people will lose coverage. Read our full brief on the July 1 deadline.
2. SNAP work requirements expanded
Work requirements for food assistance now cover ages 18-64, up from 18-54. Same 80 hours per month. This hits older workers hardest, particularly those in physically demanding jobs who can no longer meet hourly thresholds.
3. SNAP cost shift to states
Starting 2027, states pay 75% of SNAP administrative costs instead of the current 50-50 split. States with error rates above 6% must also cover up to 15% of actual benefit costs. This creates an incentive for states to kick people off rather than improve accuracy.
4. 2017 tax cuts made permanent
The individual tax rates from the Tax Cuts and Jobs Act, which were set to expire December 31, 2025, are now permanent. This disproportionately benefits high earners. The top 1% receive a larger share of the tax benefit than the bottom 60% combined.
5. SALT cap raised (temporarily)
The state and local tax deduction cap rises to $40,000 for taxpayers earning under $500,000. It reverts to $10,000 after five years. This was the price for votes from blue-state Republicans and expires just in time to not affect the next presidential election’s budget scoring.
6. Federal school vouchers
A new tax credit matches donations dollar-for-dollar (up to $1,700/year) to state-approved scholarship-granting organizations. Vouchers pay for private school tuition, tutoring, and educational materials. States must opt in via their governors. No accountability or reporting requirements for participating private schools.
7. Student loan restrictions
Medical students lose access to Federal Direct Stafford Loans and PLUS Loans. All new federal borrowers are limited to only two repayment options. Borrowing caps are tightened. This pushes graduate students toward private lenders with fewer protections.
8. Tip and overtime tax exemptions
Service workers pay no federal tax on up to $25,000 in tips. Up to 250 hours of overtime pay is also exempt. Both provisions expire in 2028. They polled well, which is why they were included, but they sunset before the midterms, which is how budgets are gamed.
9. Trump accounts for children
Children born between January 1, 2025 and December 31, 2028 receive a one-time $1,000 federal contribution to a savings account. The money can be used for education expenses. This is a headline generator, not a policy. It costs relatively little and changes almost nothing for families in poverty.
10. Medicaid cost-sharing for the near-poor
Starting October 1, 2028, people with income between 100% and 133% of the federal poverty level must pay co-pays and deductibles for Medicaid. These are people earning roughly $15,000-$20,000 per year. Any cost-sharing at that income level is a barrier to care.
Costs vs. benefits
| Provision | Who benefits | Who pays | 10-year cost |
|---|---|---|---|
| Permanent tax cuts | Top earners | Federal deficit | +$3.4T total bill |
| Medicaid work requirements | — | 5.3M enrollees | -$863B from beneficiaries |
| SNAP restrictions | — | Low-income families | -$186B from food assistance |
| School vouchers | Private school families | Public school funding | Not yet scored |
| Tip/OT exemptions | Service workers | Federal revenue | Sunsets 2028 |
“This is not a tax bill with spending cuts. It is a transfer: from the poorest Americans to the wealthiest, with enough temporary sweeteners to sell it.”
That’s from the Center for American Progress implementation timeline.
What you can do
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Know when provisions hit your state. The USAFacts timeline tracks implementation dates by provision.
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Check your Medicaid and SNAP eligibility now. If you receive either benefit, confirm your enrollment status and document your work hours before the deadlines arrive.
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Tell your representatives to repeal the worst provisions. The 2026 midterms are the first opportunity. Use Resist Bot to make contact.
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Track voucher opt-in decisions in your state. If your governor opts into the federal voucher program, public school funding in your district will be affected.
Sources
- Wikipedia: One Big Beautiful Bill Act full legislative summary
- CBO: Score projecting $3.4 trillion in new deficits over ten years
- CHCS: Summary of national Medicaid work requirements
- KFF: Medicaid work requirements tracker by state
- AJMC: Medicaid work requirements projected to leave 5.3 million uninsured
- USDA Food and Nutrition Service: SNAP provisions under OBBBA implementation