✨ The Big, Beautiful Bill Passed. Why Should You Even Care?

You might be thinking,

Totally fair. But here’s the thing: even if you don’t follow economic policy, economic policy still follows you. It can change your taxes, your paycheck, your access to education or healthcare - stuff that affects your actual budget and life choices. Whether you lean left, right, or somewhere in between, this isn’t about party lines. It’s about understanding how policy affects your wallet so that you can make smarter decisions.

This new bill (nicknamed “The Big, Beautiful Bill”) isn’t just political noise. Some of its provisions will likely affect your wallet over the next two years, whether you realize it or not. Let’s break it down.

TL;DR: What Just Happened (and Why You Should Care)

• Your taxes aren’t going up (for now)
• Student loan repayment just got trickier
• Some tax breaks are gone (EVs, energy efficiency)
• Medicaid and SNAP are tightening up
• The ultra-wealthy got a win: The estate tax exemption was doubled, letting individuals pass down up to $27 million tax-free
• Economic policy is personal, and your money is already feeling the ripple effects

💡 P.S. In next week’s newsletter, I’ll share 3 steps to protect your finances from policy changes like these, without stressing yourself out.
We’re talking:
✔️ Staying on top of and paying off debt
✔️ Building an emergency buffer
✔️ Using HSAs/FSAs smartly for rising health costs

Stay tuned—simple, doable stuff coming your way.

💰 What Might Actually Affect You (Soon)

Not everything in the bill touches your daily life. A rising deficit, for example, may have broader consequences down the road (like higher interest rates or slower economic growth) but probably won’t show up in your bank account tomorrow. Here’s what might.

✅ Your Taxes

2017 tax cuts extended: Tax rates were set to rise this year when the 2017 tax cuts expired. Instead, the current rates are staying in place.

📌 Why it matters: You won’t see a cut in your taxes, but you also won’t see them go up. Your tax withholding likely stays the same.

👶 If You Have Kids

📌 Child Tax Credit increased by $200: From $2,000 to $2,200 per child under 17.

Not a huge jump, but it’s extra money at tax time, which is especially meaningful for low- to middle-income families.

🚗 If You’re Buying a New Car

You can now deduct up to $10,000 of interest on a car loan

📌 Applies only to new cars assembled in the U.S. and only for single filers earning under $100K or joint filers under $200K. This makes financing a car slightly less painful, but only if you meet the criteria.

⚡️ If You Own (or Want) an Electric Vehicle

EV tax credits are ending. No more tax credits for:

• New or used electric vehicles
• Installing a home EV charger
• Energy-efficient home upgrades (like insulation or heat pumps)

📌 This could make sustainability upgrades more expensive in the near future.

🍽️ If You Work for Tips or Earn Overtime

Some extra income is now tax-deductible

• Tips: up to $25,000
• 📌 That’s income you can now subtract when calculating your taxable income, which could lower your tax bill if you regularly get tips or work OT.

🎓 If You Have or Plan to Take Out Student Loans

This bill makes major changes. Three current repayment plans (ICR, PAYE, and SAVE) will be phased out starting in July 2026. Borrowers currently enrolled will have a two-year window to switch to:

• Income-Based Repayment (IBR)
• Standard Repayment Plan
• New Repayment Assistance Plan (RAP)

📌 For new borrowers, only RAP will be available, and it requires up to 30 years of repayment for loan forgiveness. Longer repayment = more interest paid over time.

Other major changes:

• Eliminates federal Grad PLUS loans
• Caps Parent PLUS loans
• Limits how much grad students can borrow from the government

🎓 Big picture: Graduate students may have to rely more on private loans (with higher interest and no forgiveness) or avoid expensive grad programs altogether. Law and Medical students are likely to be the most impacted due to the large amounts of loans required.

🏥 If You Have Medicaid

The bill introduces major changes to Medicaid that may seem like just eligibility tweaks, but could lead to an estimated 16 million people losing health insurance due to the new changes.

🔄 What’s Changing

• New work requirements: Able-bodied adults must work or be in job training 20 hours/week to qualify.
• Twice-yearly eligibility checks: Instead of once a year, people now have to verify income, employment, or training every six months.

⚠️ Real-Life Consequences We’ve Already Seen

On paper, this sounds like accountability. In practice, it creates layers of complexity and risk that we’ve already seen play out. When Arkansas implemented similar rules in 2018:

• Over 18,000 people lost Medicaid coverage
• No increase in employment was observed
• Many people were working, but got kicked off due to missed paperwork or confusing reporting systems

Studies consistently show that people often don’t lose Medicaid because they don’t qualify; they lose it because they get caught in the paperwork.

The Kaiser Family Foundation’s analysis found that work requirements and mid-year redeterminations:

• Don’t increase employment
• Lead to widespread administrative churn
• Result in eligible people losing coverage
• Add substantial costs to states for implementation and compliance

👉 Read the full KFF study​

🏥 If You Don’t Have Medicaid

You may be thinking:

Yes. Here’s why:

• Uninsured patients still go to the ER. Hospitals can’t turn them away and often absorb the cost. That cost, known as uncompensated care, is passed on to insured patients through higher premiums and hospital fees.
• Rural hospitals in particular rely heavily on Medicaid reimbursements. Losing those funds can lead to closures or service cuts - even if you’re privately insured.
• ​Medicaid coverage is tied to better public health: fewer preventable illnesses, earlier treatment, lower infant mortality, and improved mental health outcomes. Healthier populations cost less for the entire community!

The Kaiser Family Foundation’s review of Medicaid expansion across states also showed it leads to:

• Lower uncompensated care costs for hospitals
• Better financial stability for families

💸 Some People Are Benefiting—A Lot

While everyday people are navigating higher student loan burdens, stricter Medicaid rules, and lost tax credits…

It also maintains or expands several tax breaks and loopholes for high earners and large corporations.

This isn’t to say no one should build wealth. But when billionaires are getting tax relief while your benefits get trimmed, it’s worth asking:

Whose financial future is this bill really protecting?

🧠 Why Economic Policy Deserves Your Attention

You don’t need to be a policy nerd to care about federal legislation. Knowing the basics of what’s being debated and passed helps you:

• Understand changes to your taxes and benefits
• Make smarter choices about education, healthcare, and debt
• Plan for your future with more clarity

Legislation like this affects where your money goes, what protections you have, and how expensive life becomes. That’s worth 5 minutes of your attention.

Wishing you a rich life,

Lora at She's a Lot

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