President Donald Trump’s one big beautiful bill law transforms taxes and other federal policies, but in reality it’s 1,116 pages in the House version and 887 pages in the Senate. How attractive you are to you depends largely on how much your salary will be in 2026.
The two bills are billions apart, but the general theme remains the same. Americans will not face a major tax bill next year. Deficit spending is offset by cuts in health and food aid programs, affecting the finances of low-income Americans.
The US Senate passed the bill slightly with 50 votes on July 1st. The Vice President of JDVance voted for the decision after a fierce Republican negotiation. Now you can go back home and harmonize the differences with another tight deadline, so by July 4th you can be on your Trump desk to sign the law.
What does “big beautiful bill” include?
The plan would make the 2017 tax cuts permanent from Trump’s first term. Some taxes will be reduced, but others will increase and spend changes. USA Today looked for winners and losers if the bill became law. Here is an example of what we found.
High-income households will benefit most
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Top 5 winners
High-income earners
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According to an analysis by the Center for Non-Participation Tax Policy, the bill “will cut an average of around $2,800 in 2026.” More than two-thirds of the total cut will go to people with annual incomes of around $217,000 or more, the center said. Those who earn more than $1.1 million will earn nearly a quarter of the cut.
Family with children
The House bill will increase the child tax credit from $500 to $2,500 to 2028. It then decreases to $2,000. However, an estimated 4.5 million children will be ineligible under the new requirement that both parents have a Social Security number, USA Today reported. The Senate bill will permanently raise the tax credit to $2,200 and adjust for inflation.
Children under the age of 8 are given $1,000 each for parents to open a “money account for growth and investment.”
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Car buyer
From 2025 to 2028, invoices will allow you to deduct up to $10,000 per year on car loan interest payments if you purchase an American-made vehicle. If your income rises above $100,000, the deduction decreases.
People who worked overtime
Overtime wages, which are treated like regular wages with federal and state income taxes, Social Security and Medicare withholding, will not be taxed under the House bill. According to a survey by the April tax law and Yale Budget Lab, if overtime allowances were not taxed, it could drop between $680 billion and $866 billion between 2025 and 2034. Under the Senate bill, the initial $12,500 extra overtime salary will be tax-deductible until 2028, with an income limit of $150,000.
Waiters and workers getting tips
All tips will not be taxed until 2028 in the House version. According to the IRS, hints have historically been underreported. An unreported tip revenue from non-integrated companies could be $23 billion, according to a 2018 report from the Financial Inspector of Tax Management. Under the Senate bill, the first $25,000 tip is tax deductible until 2028.
Top 5 losers
People under $50,000
Americans who make around $17,000 to $51,000 lose about $700. People with less than $17,000 earnings on average lose more than $1,000. Losses are primarily the result of reductions in support programs such as Medicaid, the health insurance market, supplementary nutrition support programs and student loans.
SNAP/Medicaid recipients
Initial estimates by the CBO show that the bill’s change to Medicaid could potentially result in as many as 7.6 million Americans losing their health insurance over the next decade. It will cut approximately $698 billion from the house version of the program. An estimated $1 trillion will be cut in the Senate version.
The measure cuts $267 billion in federal spending on the Supplemental Nutrition Assistance Program, known as SNAP or Food Stamps, the CBO said of the House version. It also places work requirements on people aged 55 to 64 who will benefit from a program that provides food aid to around 42 million Americans.
People with student loan debt
Student loan relief regulations enacted by President Joe Biden’s administration will be abolished in the House version, reducing the number of loan repayment plans held by the federal government to two programs. The bill also places a significant cap on loans for parents and undergraduate students, while eliminating loan programs for future graduate students.
Higher federal deficits
According to the CBO, the bill’s provisions will increase the federal deficit by $3.8 trillion from 2026 to 2034, according to the CBO, which cited an extension of the 2017 tax law and changes to the tax system, including its income and expenditure.
Undocumented people
The bill will increase the fees for legal immigration. It charges a $1,000 fee on asylum requests and requires a $500 payment every six months for work approval, USA Today reported. Among other fees, immigrants will charge hundreds of dollars when appealing a court decision.
The bill would also discourage the state from using its own money to provide Medicaid compensation to undocumented children.
Riley Beggins, Bailey Schulz, Lauren Villagran Zachary Schermele, Chris Quintana, Dan Morrison
Source USA Today Network Report and Research. Reuters; Tax Policy Centre. Penn Wharton of the University of Pennsylvania. It focuses on budget and policy priorities. Congressional Budget Bureau
