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One Big Beautiful Bill’ Takes Effect, Locking in Tax Breaks and Deferring Welfare Cuts

Administration officials dispute CBO estimates of coverage losses after Medicaid work requirements begin in 2027.

President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House, Friday, July 4, 2025 surrounded by members of Congress.
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Overview

  • It permanently extends 2017 income tax rates, adds new child and wage-based deductions and rescinds key clean-energy tax credits.
  • The package directs $350 billion toward border enforcement and allocates billions more for military shipbuilding, missile systems and other defense programs.
  • Work requirements and semiannual eligibility checks for Medicaid and SNAP recipients are scheduled to start January 1, 2027, aiming to curb enrollment through added administrative hurdles.
  • The nonpartisan CBO projects the law will swell the deficit by about $3.3 trillion over ten years and cut Medicaid rolls by 11.8 million by 2034, with experts warning it could contribute to up to 200,000 preventable deaths.
  • White House officials counter that Medicaid funding will rise by 20 percent over the next decade and maintain that no one will lose coverage.