Here's how Trump's megabill will affect you
Republicans call it President Donald Trump's 'One Big Beautiful Bill Act,' but there have been several versions. The latest passed the Senate on Tuesday with Vice President JD Vance's tie-breaking vote.
Senate Republicans' version of the bill differs in key ways from what the House passed in May. Both chambers will ultimately have to pass the same version to send the package to Trump's desk by his desired July Fourth deadline.
But the general contours of the massive piece of legislation are known. It extends Trump's first-term tax cuts, funds his vision for a border wall, and offsets some of that revenue loss and additional spending with cuts to federal support for the social safety net that helps Americans afford food and health insurance.
Here's what we know about how the Senate bill will affect …
For many Medicaid enrollees, the biggest impact would be the new work requirement. Certain able-bodied Americans ages 19 to 64 who are enrolled through the Medicaid expansion would have to work, volunteer, attend school or participate in job training at least 80 hours a month. The mandate would also apply to parents of children ages 14 and older.
Read more from Tami Luhby here.
In addition, expansion enrollees would have their eligibility reviewed more frequently and would have to pay up to $35 for certain care.
Overall, Medicaid enrollees could face other changes, since states would receive less federal funding for the program. This could force some states to eliminate certain benefits or tighten enrollment, among other alterations.
Plus, many enrollees would face more paperwork and verification requirements, which could make it harder for some to apply for and maintain their benefits. The bill would delay the implementation of some provisions in two Biden administration rules aimed at streamlining enrollment and renewing coverage.
Nearly 12 million more people would be uninsured in 2034, with many of them losing coverage because of the Medicaid provisions in the bill, according to a Congressional Budget Office analysis published Sunday, before subsequent changes to the bill that the Senate ultimately passed.
More Americans who receive food stamps would have to work to keep their benefits. The bill would broaden the existing work mandate to enrollees ages 55 to 64 and parents of children ages 14 and older, as well as to veterans, former foster youth and people experiencing homelessness.
Enrollees in the Supplemental Nutrition Assistance Program, known as SNAP, the formal name for food stamps, may also face other changes: Many states would also have to cover part of the benefit costs for the first time and pay more of the administrative costs, both of which may force them to tighten benefits, cut eligibility or make other alterations, including potentially withdrawing from the safety-net program. Also, the growth of food stamp benefits would be limited in the future.
Read more from Tami about an earlier iteration of the Senate bill's food stamp changes here.
Americans looking for coverage on the Obamacare exchanges could have a tougher time enrolling in plans and receiving federal subsidies to help pay their premiums. The bill would increase verification requirements and would effectively end automatic reenrollment. The CBO estimates that millions of people would lose their Obamacare coverage.
Just because you aren't on Medicaid doesn't mean your health care wouldn't be affected by the bill. Hospitals are warning that the steep cuts to Medicaid could force some hospitals — particularly in rural locations — to close their doors, limit services and reduce staff.
'The real-life consequences of these reductions will result in irreparable harm to access to care for all Americans,' Rick Pollack, CEO of the American Hospital Association, wrote in a letter to senators Sunday.
The bill could also affect those who don't receive food stamps. A trade group for independent grocers warned that cutting federal support for the program could hurt local food retailers, which increase access to groceries, provide jobs and help local economies — particularly in rural and underserved areas.
State lawmakers would likely have to make tough decisions since they would face massive reductions in federal support for Medicaid and food stamps. They could try to limit the cost of the programs by cutting benefits or eligibility, but they might also decide to try to save money in other areas, such as education or infrastructure.
The bill would reduce the amount of taxes that state and local governments can levy on providers, notably hospitals, which is a key source of funding for states. Also, it would require many states to start paying for part of the food stamp benefits and shoulder more of the administrative costs.
Many taxpayers would continue to benefit from the array of individual income tax cuts from the 2017 Trump tax package that are set to expire at year's end. The current bill would permanently extend essentially all those tax breaks, including the lower individual rates and a near-doubling of the standard deduction.
But a lot of those taxpayers may not notice this tax relief because it would be a continuation of provisions that have been in place since the 2017 law was enacted. Some, however, may benefit from the larger child tax credit and temporary increase in the cap on state and local tax deductions, as well as other new tax breaks in the bill.
Households would see their taxes reduced by $2,900, on average, according to a Tax Policy Center analysis of the tax provisions in the bill. But that figure varies widely depending on taxpayers' income. More on that later.
Senior citizens would receive a $6,000 boost to their standard deduction from 2025 through 2028. The benefit would start to phase out for individuals with incomes of more than $75,000 and couples with incomes double that amount.
This tax break is in lieu of Trump's campaign promise to eliminate taxes on Social Security benefits.
Some lower-income seniors enrolled in both Medicare and Medicaid, however, could be affected by the Medicaid cuts in the bill. They could lose their Medicaid coverage, which helps them cover their Medicare premiums and out-of-pocket costs. They could also lose benefits they receive through Medicaid, such as long-term care and dental services.
New caps would be placed on the amount students can borrow in federal student loans for graduate school and how much parents can borrow to help pay students' tuition. There would be fewer opportunities for deferments or forbearance. There would also be limits on lending for part-time students and a much more limited set of repayment options, veering away from the loan forgiveness programs of the Biden era.
A primary focus of the bill is tax cuts, but not everyone who pays taxes will pay less. Private universities are generally tax-exempt, although they do pay a 1.4% tax on income from their endowments. This bill would jack up that endowment income tax to a top rate of 8% for colleges whose endowments exceed $2 million per enrolled student. We're talking about schools like Harvard, Yale, Stanford, MIT and Princeton.
Good news for anyone buying a new American-made car with a loan: This bill will allow up to $10,000 in interest to be deducted from taxable income.
Bad news for anyone wanting to buy an electric vehicle: EV tax credits, which ranged up to $7,500 and were enacted by Democrats under President Joe Biden, would end at the end of September. They had been scheduled to last through 2032.
Many parents would get a larger tax break: The legislation would permanently beef up the child tax credit to $2,200 per kid, up from the current $2,000.
Single parents earning up to $200,000 and married couples earning up to $400,000 would qualify. The credit would phase out for those with higher incomes.
However, other parents could lose out on government assistance since many of those with children ages 14 and older would have to work to continue receiving Medicaid and food stamps.
In a three-year pilot program, every American baby born between 2025 and 2028 would get a $1,000 nest egg from the government to be invested in an index fund. Parents could then add $5,000 each year to those accounts and watch the interest grow during childhood. No deductions would be allowed until the child turns 18. Originally called a 'baby bonus,' or a 'MAGA account,' the name was changed to 'Trump accounts' over the course of this year. It bears some similarities to proposals put forward by Democrats, including Sen. Cory Booker. Read more from CNN's Jeanne Sahadi.
Many workers who receive tips or overtime compensation would get a tax break through 2028.
Employees who work in jobs that traditionally receive tips could deduct up to $25,000 in tip income from their federal income taxes, while workers who receive overtime could deduct up to $12,500 of that extra pay.
Highly compensated individuals who make more than $160,000 in 2025 would not qualify.
The bill speeds up the end of tax incentives for renewable energy projects to 2027.
The bill would limit eligibility for federal benefits — including food stamps, Medicaid, Affordable Care Act premium subsidies and Medicare — to a smaller set of noncitizens.
Some immigrants, such as refugees, asylees and victims of domestic violence and sex trafficking, would no longer qualify.
In addition, immigrants would have to pay new or higher fees to apply for various programs, including asylum, work authorization, humanitarian parole and Temporary Protected Status, as well as for most immigration court filings.
Wealthy Americans would benefit far more from the tax package than those lower on the income scale, according to a Tax Policy Center analysis of the Senate bill.
While all households would see their taxes reduced, some 60% of the benefits would go to those making $217,000 or more (the top 20%). These folks would receive an average tax cut of $12,500, or 3.4% of their after-tax income, in 2026, the analysis found.
But the lowest-income households, who earn about $35,000 or less, would receive an average tax cut of only $150, less than 1% of their after-tax income. Middle-income households would see their taxes reduced by about $1,800, or 2.3% of their after-tax income, on average.
This analysis does not take into account the historic cuts to the nation's safety-net program, which would hurt lower-income Americans. They would see their income reduced after factoring in the changes to Medicaid and food stamps, according to a report from the Budget Lab at Yale.
It's hard to believe, but according to a Congressional Research Service report, thousands of people who made $1 million or more claimed unemployment benefits in 2021 and 2022. This bill puts an end to that.
Musk is furious about the bill and howling about it on social media. Not only does he disagree with the deficit-exploding tax cuts, he would also prefer more spending cuts.
The Tesla CEO also vehemently opposes the abrupt end to EV tax credits.
'It gives handouts to industries of the past while severely damaging industries of the future,' he wrote on X. He predicted 'political suicide' for Republicans if they turn this bill into law.
The bill would increase the deficit by $3.3 trillion over the next decade, according to the Congressional Budget Office report published Sunday. Republicans have embraced a budget gimmick to argue the impact of the bill is much smaller. But nobody should expect the roughly $36 trillion national debt to shrink as a result of the package.
The legislation would also raise the debt ceiling by $5 trillion to allow the Treasury Department to borrow more to pay the bills that have already been incurred.
Many Americans could feel the consequences of the nation's ever-growing debt in their wallets. The bill would increase interest rates, according to a CBO analysis of the House version. That could make mortgages, car loans and credit card payments more expensive.
Read more from CNN's Matt Egan here.
The money Trump could not secure for a border wall during his first term is in this bill. It allocates $46.5 billion for border wall construction and $45 billion for the detention of undocumented people apprehended by Immigration and Customs Enforcement.
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With tokenized stocks, Robinhood's European app transitions from a crypto-only app to a broader offering where customers can invest in stocks and ETFs. Wall Street is bullish on the stock, with Bernstein analysts recently highlighting Robinhood's major expansion in the crypto space. "HOOD leaned early into crypto in 2021 and persisted through the regulatory headwinds in 2022/2023, while other brokers played conservative and are only now waking up to the crypto opportunity," Bernstein analysts wrote in May, noting Robinhood now forms 30% of US retail crypto trading revenues. DA Davidson analyst Gil Luria reiterated his view that Alphabet (GOOGL, GOOG) needs a "complete breakup" to unlock the value of its individual businesses, maintaining his Hold rating on the stock. Luria wrote in a note to clients on Wednesday, "We believe the only way forward for Alphabet is a complete breakup that would allow investors to own the businesses they actually want." Google is waiting for a federal judge's ruling in the remedy phase of its antitrust case with the Department of Justice, in which the company was found liable for illegally monopolizing the general search engine market and the market for general search engine text "We see Google Cloud (GCP) as potentially one of the best standalone software stocks," Luria wrote. "GCP is not only a top 3 hyperscaler expected to generate $ 55bn of revenue this year, but provides a full suite of tools around that core offering that is competitive with the two leaders Amazon AWS and Microsoft Azure." Luria noted that Google Cloud "has an architecture advantage" because of its access to in-house AI chips (Google's TPUs, or tensor processing units) in addition to its Nvidia (NVDA) servers. He said shares of Google Cloud as a standalone stock would trade at $56 per share. Footwear stocks led by Nike rose in morning trade on Wednesday after President Trump took to his social media platform Truth Social to share that he "made a Trade Deal with Vietnam." Nike (NKE), On Holding (ONON), Deckers (DECK), and Lululemon (LULU) spiked in immediate response to the news. Retail and footwear stocks tempered initial gains as Trump outlined details of the deal in a subsequent post, which said Vietnam will pay a 20% tariff on all good sent into the US and a 40% tariff on goods that are subject to transshipping, meaning routed through Vietnam with a different country of origin, like China. After an initial pop to rise as much as 4%, Nike stock was up about 1.7% in mid-morning trade on Wednesday. Shares of ON were up more than 3.5% to lead the rally among footwear names, while Deckers and Lululemon shares were fractionally higher. Read more here. Intel stock fell 3.7% after Reuters reported that the struggling chipmaker's new CEO is considering scrapping the company's long-awaited 18A technology for external customers — a chip manufacturing process that analysts have said is Intel's greatest hope for succeeding in a turnaround and becoming competitive with TSMC (TSM). According to Reuters, CEO Lip-Bu Tan has said that 18A was losing its appeal with customers. So far, Amazon (AMZN) and Microsoft (MSFT) have signed on to build their own chips using Intel's 18A process. Intel opened up its manufacturing business to outside clients in 2021 under former CEO Pat Gelsinger. But Wall Street analysts, investors, and executives grew exasperated with his strategy and what they saw as unrealistic goals for the business, which lost $13.4 billion in 2024 despite recording a revenue of $17.5 billion. Tan joined the company in March, and analysts and former executives told Yahoo Finance the new CEO needed to release 18A for outside customers to show that the company can execute after a history of delays and cancellations of its products and manufacturing processes. But Tan would instead like to focus on 14A, the manufacturing technology that is the successor to 18A. President Trump announced a trade deal with Vietnam, lifting investor sentiment that more agreements could come before the July 9 tariff-pause deadline. "The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping," Trump wrote on social media on Wednesday morning. "In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade," he added. "It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam," wrote Trump. Investors have been closely watching developments on the trade front as July 9 approaches — the deadline following a 90-day pause of reciprocal tariffs announced in April. The US recently announced a framework agreement with China, a major trading partner. Insurance stocks dropped across the board Wednesday following the passage during the prior trading session of Trump's "big, beautiful" tax and spending bill, which would gut federal healthcare spending over the next decade. UnitedHealth (UNH) fell nearly 3%, while Aetna parent company CVS Health (CVS) dropped over 2%. Cigna (CI) declined 3%, while Elevance Health (ELV) fell almost 9%. The megabill's provision to slash federal spending on Medicaid and Affordable Care Act marketplaces by about $1 trillion would leave almost 12 million people without insurance by 2034, NPR reported. Tesla stock climbed nearly 3% early Wednesday after the EV maker reported global electric vehicle deliveries that came in below Wall Street's low projections but produced more cars than expected. Tesla said Wednesday it delivered 384,122 EVs in the second quarter, less than the 389,407 projected by Wall Street analysts tracked by Bloomberg consensus estimates. The company's deliveries for the period marked a 13% drop from the prior year, but an increase from the 336,681 vehicles delivered in the first quarter. Read the full story here. Apple (AAPL) stock climbed about 1% Wednesday before the market open following an upgrade from analysts at Jefferies, who raised their rating to Hold from Underperform previously. Citing Counterpoint Research, Jefferies analyst Edison Lee said global iPhone sales rose 15% in April and May from the prior year, the strongest growth since the third quarter of 2021. Lee estimated that iPhone sales in China grew 19% in that period, partly due to targeted discounts and government subsidies as well as "pulled-in demand," or Chinese consumers buying phones ahead of anticipated tariffs. "This is a strong sign that AAPL is determined to defend market share in China, and Chinese consumers are still willing to buy iPhone at lower prices," Lee wrote. But he also said the release of the iPhone 17 in the second half of 2025 may not provide the boost Apple needs. Lee wrote that "sales could be at risk since there remains a lack of new features, and AI is not yet a game changer." Apple shares jumped 1.3% Tuesday following a report from Bloomberg that the iPhone maker is considering using AI technology from startups Anthropic ( or OpenAI ( to power a new version of Siri. Still, the stock was down 17% for the 12 months through Tuesday. Nvidia (NVDA) stock continued to retreat from its record high of $157.99 on Monday. Shares were down 1.2% in premarket trading. The AI chipmaker had reclaimed the top spot among the most valued companies worldwide in June, with a market cap of around $3.73 trillion, as of July 1. Microsoft (MSFT), the second most valued company, has a market cap of roughly $3.65 trillion. From Reuters: Read more here. Private employers unexpectedly cut 33,000 jobs in June, the latest signal of an intensifying slowdown in the US labor market. On Wednesday, data from ADP showed private payrolls fell by 33,000 last month in June, below the 29,000 job gains seen in May and the 98,000 additions expected by economists. This marked the first month of job losses in the private sector since March 2023. May's initial reading of 37,000 private payroll additions had been the lowest monthly total since March '23. "Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month," ADP chief economist Nela Richardson said in the release. "Still, the slowdown in hiring has yet to disrupt pay growth." Read more here. Some of the world's most influential stocks are dragging the S&P 500 Index (^GSPC) down. The names Apple (AAPL), Tesla (TSLA) and Alphabet (GOOG, GOOGL) — part of the Mag 7 and synonymous with growth and value seem to be preventing the S&P 500 from reaching further highs. Bloomberg News reports: Read more here. Apple's (AAPL) is reportedly considering using AI tech from outside firms to power new version of Siri. Meta CEO Mark Zuckerberg is on an aggressive recruitment drive to poach top AI researchers and engineers. They're both signs of a key shift, Yahoo Finance's Hamza Shaban reports in today's Morning Brief: Read more here. Tesla (TSLA) is expected to report yet another quarter of declining global deliveries on Wednesday, though disappointing sales are nothing new for investors and analysts following the company. Data for June has brought a mixed message. Sales dropped for a sixth straight month in France, Sweden, Denmark and Italy, but rose in Norway and Spain — an early sign that the revamped Model Y is getting some buyers. Shares of Tesla were edging into the green in premarket before the quarterly data, following a 5% loss on Tuesday as CEO Elon Musk's feud with President Trump flared up again. Yahoo Finance's Pras Subramanian reports: Read more here. Earnings: No notable earnings releases.. Economic data: MBA Mortgage Applications (week ending June 27); ADP employment change (June); S&P Global US services PMI (May final); Challenger job cuts (May) Here are some of the biggest stories you may have missed overnight and early this morning: Apple and Meta are proving it: AI is going corporate Bets on 'Goldilocks' stocks bump up against reality Trump's 35% threat feeds Japan's worst-case tariff fears 'Irrational exuberance' stock gauge sparks fresh bubble worries Opinion: Musk is right about the Trump tax bill's failures Tesla's quarterly deliveries to fall short again Paramount settles Trump's '60 Minutes' suit for $16 million Bessent: Fed could lower interest rates by September Social Security checks slashed for millions this month Shares of Centene (CNC) tumbled over 25% in premarket trading after the healthcare insurer withdrew its financial guidance for 2025, warning that its earnings will fall far short of expectations. The company said late Tuesday that recent data showed that fewer people were enrolling in the Medicaid and Affordable Care Act marketplaces, and those who did enrol were sicker than expected. Those trends went against Centene's assumptions are likely to lead to a shortfall of $1.8 billion in federal payouts, the company said. Centene expects the issue to pull its full-year earnings per shares down by $2.75 a share. Wall Street had previously estimated adjusted EPS of $7.28. Shares of industry peers Elevance Health (ELV) and Oscar Health (OSCR) also struggled, down 4% and 7%, respectively.