How Trump's 'Big Beautiful Bill' Impacts SNAP, Medicaid, Taxes And Student Loans

The Senate on Tuesday approved a sweeping domestic policy package that would slash spending on the Supplemental Nutrition Assistance Program (SNAP), marking what analysts call the deepest food-aid cut in modern history and sending the bill back to the House for final action.

How The ‘Big, Beautiful Bill’ Affects SNAP

• Work longer. Able-bodied adults without small children must verify 80 hours a month of work, training, or community service until age 64, up from 54 under current law. Parents escape the rule only if their youngest child is under 7, not 18.
• Lose benefits faster. The Congressional Budget Office projects the tougher rules will drop about 3.2 million people from SNAP rolls each month once fully in force.
• Shift costs to states. States would pay 5% of benefits and 75% of administrative expenses. Those with payment-error rates above 6% could owe up to 15% of benefits.
• Cap future increases. The bill freezes the inflation formula for the Thrifty Food Plan, trimming every household's annual cost-of-living raise and erasing roughly $35 billion over 10 years.
• Cut overall funding. Federal SNAP spending would decrease by $295 billion over a decade, the largest reduction on record.

How Does The Bill Affect Medicaid?

• Work mandate expands. Able-bodied adults ages 19-64, including parents of children 14 and older, must log 80 hours a month of work, study or volunteering to keep coverage.
• More paperwork. States would verify eligibility twice a year and check income every six months, increasing the odds of procedural terminations.
• Cost-sharing rises. Expansion enrollees could be charged up to $35 per visit for many services.
• Federal aid shrinks. A $1-trillion Medicaid cut over 10 years would force states to curb benefits or tighten enrollment.
• Coverage losses mount. The CBO projects about 12 million more uninsured by 2034 from the Medicaid provisions alone.

See also: America Has No Will To Help Its Middle Class, Says Economist Richard Baldwin: So Politicians ‘Find A Convenient Scapegoat — Globalization’

What About Individual Tax Cuts?

• 2017 rates stay. The bill makes the 2017 individual rate cuts and doubled standard deduction permanent, as mentioned in a WSJ report, avoiding a scheduled January lapse.
• Household impact. Average filers would save about $2,900 in 2026, though gains vary sharply by income, the Tax Policy Center says.
• Few notice. Because the breaks have been in place since 2017, many taxpayers would see no change in withholdings.

What’s In It For Seniors?

• Temporary boost. From 2025-28, Americans 65+ could claim an extra $6,000 standard deduction. The benefit phases out above $75,000 for singles, $150,000 for couples.
• Social Security tax stays. The carve-out replaces Trump's campaign pledge to end taxes on benefits.
• Collateral hit. Low-income dual-eligibles could lose Medicaid help with Medicare premiums as states trim programs.

How Does The Bill Impact Student Loans?

• Loan caps. Graduate borrowing would cap at $20,500 a year, $100,000 lifetime. Parent PLUS loans would max at $20,000 a year, $65,000 overall.
• Fewer options. Grad PLUS and subsidized loans disappear, leaving just a standard plan and one income-based option.
• Harder relief. Deferments and forbearances tighten, and forgiveness periods stretch to 30 years.

What’s For Parents?

• Credit rises. The child tax credit jumps permanently to $2,200 per kid, indexed to inflation.
• Income limits. Full credit available up to $200,000 (single) / $400,000 (joint). Phases out above those thresholds.
• Work-linked aid. Parents of teens 14+ must meet Medicaid and SNAP work rules to retain assistance.

What About "Trump Accounts"?

• $1,000 seed. Every baby born 2025-28 receives a $1,000 government deposit into a stock-index account.
  Parental top-ups. Parents may add up to $5,000 yearly. Withdrawals barred until age 18.
• Pilot scope. Lawmakers dub the three-year test "Trump Accounts," echoing ideas long pushed by Sen. Cory Booker (D-NJ).

Read next: Trump’s ‘Big Beautiful Bill’ Advances: Here’s Who Wins And Loses

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