What will Americans gain and lose now that the big and beautiful bill has settled?

The U.S. House of Representatives has finally passed President Trump's massive tax and spending bill, which will affect nearly all groups, including the elderly, students, taxpayers, children, parents, and low-income individuals.

Screenshot of CNN report

The Senate version differs from the one passed by the House of Representatives in May in several key aspects. Ultimately, both the Senate and the House must pass the same version in order to send the package to Trump for signing before the deadline of July 4.

The massive legislation finally passed again in the House on Thursday. It will extend the tax cuts from Trump's first term, provide funding for the border wall, and offset some of the revenue losses and new spending by cutting federal support for the social safety net—specifically, the welfare programs that help Americans afford food and health insurance.

The following is a summary by CNN of the potential impacts of the bill on various groups:

Medicaid beneficiaries: Millions may lose insurance

Many people who rely on Medicaid will face new work requirements. Certain healthy adults aged 19 to 64 who joined the program through expanded Medicaid policies must work, volunteer, attend school, or receive job training for at least 80 hours per month. This regulation also applies to parents with children aged 14 and older.

In addition, as federal funding received by states is set to decrease, enrollees may also face issues such as benefit cuts, stricter enrollment requirements, and cumbersome application procedures. The bill will also delay the implementation of two provisions from the Biden administration aimed at simplifying enrollment and renewal processes.

According to an analysis released by the Congressional Budget Office (CBO) on July 2, before the final version of the bill is implemented, approximately 12 million people will lose insurance by 2034, the majority of whom will lose coverage due to provisions related to Medicaid.

State Government: Increased Financial Pressure

State lawmakers will have to make difficult choices in response to the reality of significant cuts in federal aid, such as Medicaid and food stamps. They may choose to control costs by limiting benefits or raising eligibility thresholds, or by cutting spending in areas like education and infrastructure.

In addition, the bill will reduce the ability of state and local governments to levy taxes on healthcare institutions, especially hospitals, which are an important source of state revenue. States will also be required to bear part of the costs of food stamps and cover more administrative expenses.

Taxpayers: May Find It Difficult to Notice Tax Cuts Continuation

Most taxpayers will continue to benefit from the individual income tax reduction provisions in the 2017 Trump tax reform bill, including lower tax rates and nearly doubled standard deductions. The current bill will make these provisions permanent.

However, since this tax reduction policy has been in place since 2017, many people may not notice the changes. However, some taxpayers will benefit from the increased child tax credit, the temporarily relaxed state and local tax deduction limits, and other new tax reduction policies.

The analysis from the Tax Policy Center indicates that the average tax burden on households will decrease by $2,900, but the extent of the tax cut varies by income.

Seniors: Will receive short-term tax relief

From 2025 to 2028, the standard deduction for seniors will increase by $6,000, but this benefit will be gradually phased out for individuals with an annual income over $75,000 or couples with an annual income over $150,000.

However, low-income elderly individuals who rely on both Medicare and Medicaid may be negatively impacted by cuts to the latter, including losing assistance with premium payments, out-of-pocket expenses, or being unable to continue receiving long-term care and dental services.

Student Loan Borrowers: Significant Policy Adjustments

The bill will set new limits on federal student loans available to graduate students and their parents, while also reducing the opportunities for deferment or forbearance on loans. Part-time students will also face restrictions on loan eligibility, and repayment options will become more limited, ending the loan forgiveness policy that was in place during the Biden administration.

Car Buyers: Interest Expenses are Tax-Deductible

For consumers who take out loans to purchase new cars manufactured in the United States, the bill will allow them to deduct up to $10,000 in loan interest from their taxable income.

But for those planning to purchase electric vehicles, this is bad news – the Biden administration's electric vehicle tax credit policy, which was originally set to last until 2032 with a maximum credit of $7,500, will end at the end of September.

Parents: Increase in Child Tax Credit

The bill will increase the child tax credit for each child from the current $2,000 to $2,200 and establish it as a permanent policy.

Eligible are single parents with an annual income not exceeding $200,000 and married couples with an annual income not exceeding $400,000. The credit amount for high-income families will be gradually reduced.

However, some parents with children aged 14 and above may lose government assistance such as medical aid or food stamps if they do not meet work requirements.

Workers receiving tips or overtime pay: Temporary tax reduction

By 2028, many workers receiving tips or overtime pay will benefit from tax reductions.

• Employees in traditional industries who receive tips can deduct up to $25,000 in tip income from their federal income tax.

• Employees with overtime pay can deduct up to $12,500 of their overtime income.

However, high-income workers earning over $160,000 in 2025 will no longer be eligible.

Immigration: Welfare eligibility tightened significantly

The bill will restrict the eligibility of certain non-citizens for federal benefits, including food stamps, Medicaid, subsidies under the Affordable Care Act, and Medicare.

Certain immigrant groups, such as refugees, asylum seekers, and victims of domestic violence and human trafficking, will lose their eligibility for the aforementioned benefits.

In addition, immigrants will face new or higher application fees when applying for asylum, work permits, humanitarian parole, and temporary protected status, as well as when making applications to immigration courts.

Rich people: Overall benefit more

According to relevant analysis, wealthy Americans will receive tax cut benefits from this bill that are far higher than those of middle and low-income groups.

Although all families will receive tax cuts, households with incomes above $217,000 (the top 20%) will account for 60% of the beneficiaries of the tax cuts. By 2026, they will have an average tax cut of $12,500, which will represent 3.4% of their after-tax income.

In contrast, families with an annual income of $35,000 or less received an average tax cut of only $150, accounting for less than 1% of their after-tax income; middle-income families received an average tax cut of $1,800, accounting for 2.3% of their after-tax income.

This analysis does not take into account the cuts to the national social safety net programs, which are crucial support for low-income families. According to a report from the Yale Budget Lab, after considering changes to Medicaid and food stamps, the overall income of low-income families will decline.

Millionaire Unemployed: Will Not Be Able to Receive Unemployment Benefits

Surprisingly, according to a report by the Congressional Research Service, in 2021 and 2022, thousands of Americans with annual incomes exceeding $1 million received unemployment benefits. This bill will put an end to such practices.