Anna Helhosky, Neldwallet
The GOP-led Congress is walking the political tightrope by rolling out key provisions in Trump’s “one big, beautiful” bill passed last week.
With next year’s midterm approaching, strategic timing is everything. Households (and businesses) will begin in 2025, but most social programs will be delayed until 2028.
This is a summary of when the budget clause that can most impact your household begins.
Tax reductions and incentives
Extending the 2017 marginal tax rate: Trump’s 2017 tax cuts for individuals and businesses were set to expire at the end of the year, but now it’s permanent and quickly took effect. Increase in state and local tax (salt) caps: Salt caps will rise to $40,000 starting in 2025 filing year, but will return to $10,000 in 2028. Increase in standard deduction: The current standard deduction, which doubled due to Trump’s tax cuts in 2017, will be permanent. Starting in 2025, single filers can deduct an additional $750, while married couples can deduct $1,500. Additional deductions will be adapted to inflation starting in 2026. The increase in people with higher incomes will be phased out. Increase in standard deductions for seniors: Those over 65 years old who expire from 2025 to 2028 and who are under $75,000 per year can deduct an additional $6,000 ($12,000 for married couples) in addition to the standard deduction. Child Tax Credit: Increases the child tax credit for the 2025 tax year to $2,200. Credit amounts are adjusted to help inflation move forward. There are no taxes on tips: Starting in 2025 filing year, tip income of less than $25,000 per year will be tax-deductible. This provision will expire after 2028. There is no overtime tax. Overtime salary will be deducted. Starting in the 2025 tax year, this is up to $12,500 for individual filers and $25,000 for married couples jointly filed. The provision charges a couple’s $300,000 in stages, in stages, for those with incomes exceeding $150,000. It will end in 2028. New Vehicle Auto Loan Interest Waiver: You can deduct interest rates up to $10,000 on new car purchase loans. The beginning of 2025, the setting sun began in 2028. Housing Energy Tax Credit: From December 31, 2025. Electric Vehicle Tax Credit: September 30, 2025. Section 179 Deduction: SMEs can amortize 100% of equipment and certain commercial property costs in the first year, effective January 19, 2025. Additionally, starting December 31, 2024, the asset expense deduction cap will be increased to $2.5 million. 2022.
Social Program Cut
Medicaid job requirements: Recipients should check 80 hours of work, school, work training, or volunteer activities per month. The state must implement the new requirements by December 31, 2026. Supplementary Nutrition Assistance Program (SNAP) Work Requirements: Expand work requirements to competent recipients between 18 and 64 years (up from 54 years old). Requirements include the requirement to have at least six children. The timing is not clear, but changes may begin during this year. Medicaid Reduction: Medicaid funding cuts begin in 2028. The Congressional Budget Office projectes nearly $1 trillion in cuts over a decade. Approximately 11.8 million people could lose their medical coverage. Snap Cut: Food aid cuts of up to $230 million over 10 years from 2028. Changes to Affordable Care Act (ACA) Rules: Depending on certain provisions, ACA registration rules will be rolled out between 2025 and 2028.
Reduced consumer protection
Consumer Financial Protection Bureau (CFPB) Funding Cuts: CFPB funds will take effect immediately. CFPB oversees the consumer finance industry. Current Federal Student Loan Borrower Repayment Plan: Existing income-driven federal student loan repayment plans will be at sunset by July 1, 2028. This includes forgiveness under these repayment plans. The new repayment plan for student loan borrowers begins enrolling in the new repayment assistance program starting on July 1, 2026. This is an income-driven plan that requires borrowers to pay a minimum of $10 monthly payments and extends their forgiveness timeline to 30 years. Graduate Plus Loan Program: Sunset Funding for Graduate and Loan Programs as of July 1, 2026. The lifetime borrowing for graduate studies will also be concluded. Parent Plus Loan Program: As of July 1, 2026, we will implement a $65,000 limit for parents and loans.
Anna Helhoski writes for Nald Wallet. Email: anna@nerdwallet.com. Twitter: @annahelhoski.
Article “Big and Beautiful” When will the change to the megabuilding take effect? It originally appeared in Nerdwallet.
