Overview

• The law makes permanent most of Trump’s 2017 tax cuts and introduces new deductions for tip and overtime income as well as expanded state and local tax credits.
• The Congressional Budget Office forecasts a $3.4 trillion increase in federal deficits over the next decade and warns that 11.8 million people could lose health coverage.
• Deep cuts to Medicaid and SNAP are scheduled to begin in 2027 after the 2026 midterm elections as part of a strategy to minimize immediate voter backlash.
• Polling shows more Americans disapprove of the law than approve, leaving Republicans scrambling to sell its tax benefits amid a surge of Democratic ads highlighting its downsides.
• Both parties are already centering their 2026 House race campaigns on the bill’s delayed safety-net reductions and its long-term fiscal impact.