What Is the Big Beautiful Bill? 8 Things Financial Advisors Want You to Know

President Donald Trump and the Republican-majority Congress signed the One Big Beautiful Bill Act (OBBBA) into law on July 4, 2025. Regardless of your political leanings, this bill will have major impacts on your finances, from taxes and investments to education and healthcare.

Below, I’ll break down some of the biggest financial implications of the OBBBA, but you should also speak with your financial advisor if you have specific concerns.

Table of Contents

1. 1. Fewer consumer financial protections
2. 2. Changes to standard and itemized deductions
3. 3. No taxes on tips and overtime
4. 4. Other tax changes (and expected benefits)
5. 5. Less access to federal student loan funds
6. 6. Fewer options for student loan repayment
7. 7. Less access to SNAP benefits
8. 8. Major cuts to Medicaid and Medicare
9. How to navigate changes from the Big Beautiful Bill

1. Fewer consumer financial protections

Former President Barack Obama and Congress created the Consumer Financial Protection Bureau (CFPB) in 2010 as part of the Dodd-Frank Act in response to the financial crisis of the late 2000s. The agency serves as a consumer watchdog, holding banks, lenders, and other financial companies accountable for their actions and creating resources to educate Americans about financial decisions.

As of the end of 2024, the CFPB had earned Americans more than $21 billion through compensation, principal reductions, canceled debts, and other consumer relief initiatives; it had also saved consumers an average of $6.1 billion a year in overdraft and non-sufficient funds fees, among other victories.

Trump’s One Big Beautiful Bill Act cuts the agency’s funding in half. This means the CFPB will not have the same resources to hold financial institutions accountable. In an era of less regulation and less policing from consumer advocacy groups, I anticipate more violations by financial institutions—at Americans’ expense.

In my opinion as a Certified Financial Education Instructor®, this is one of the biggest financial implications of the Big Beautiful Bill that not enough people are talking about. Real Americans will suffer because of this change.

2. Changes to standard and itemized deductions

The Big Beautiful Bill has major tax implications, as well. You’ve probably heard talking points about how the bill benefits the ultra wealthy at the expense of the lowest-income Americans—and while that’s true, I want to focus not on political disagreements but on how this will actually affect you.

There are some benefits, regardless of your income level.

For starters, the OBBBA makes many of the changes from the Tax Cuts and Jobs Act permanent; these were due to expire at the end of 2025. It makes the increased standard deduction permanent, meaning fewer filers are likely to itemize.

In 2025, the standard deduction is:

• $15,750 for single filers
• $23,625 for heads of household
• $31,500 for married couples filing jointly
• $15,750 each for married couples filing separately

The standard deduction will continue to increase with inflation each year.

The Big Beautiful Bill has some other noteworthy provisions regarding tax deductions and credits to consider during year-end tax planning:

• A $6,000 bonus deduction for some seniors
• Limitations to itemized deductions
• A $200 increase to the child tax credit (now $2,200)
• Increased state and local tax (SALT) deductions (now $40,000)

The list continues. For a better idea of new and revised deductions and credits, work with your financial advisor or CPA.

3. No taxes on tips and overtime

The OBBBA includes two big tax wins for working-class Americans, at least temporarily: no taxes on tips or overtime through 2028.

There are some asterisks next to each of these. For instance, no tax on tips up to $25,000 per return (this favors single filers over joint filers) and no tax on overtime up to $12,500 per taxpayer.

4. Other tax changes (and expected benefits)

The Big Beautiful Bill is long, meaning there are more updates to tax law than I could realistically cover. Hiring an accountant would help maximize your return, but here’s what to consider on your own:

• Private mortgage insurance (PMI) is now deductible again.
• An auto loan interest deduction for American-made cars.
• Changes to charitable giving donations.
• The 1099-K threshold is not dropping as planned.

With many of the legislative changes taking effect in 2025, I recommend that individuals begin working with a tax professional now to prepare. For low-income households, the Volunteer Income Tax Assistance (VITA) program is available in all 50 states, including Washington, D.C., and offers free, reliable tax support.

5. Less access to federal student loan funds

The OBBBA introduces a wealth of changes to federal student loans—and if you’re a student, these changes aren’t for the better. You’ll get a greater understanding of these changes in my guide to the Big Beautiful Bill and student loans, but just note that:

• There’s now a lifetime borrowing limit.
• Grad PLUS loans are going away.
• Parent PLUS loans get new (lower) caps.
• Pell Grant access is changing.

6. Fewer options for student loan repayment

The Big Beautiful Bill does more than limit access to student loans; it also completely guts the current repayment options. You can learn more about the intricacies of these changes in my guide to student loans and the BBB, but note that:

• Most income-driven repayment plans are being phased out.
• A new income-driven repayment plan is coming (but you may pay more).
• A new standard repayment plan is in the works.

7. Less access to SNAP benefits

The One Big Beautiful Bill Act reduces the number of people exempt from the work mandate attached to the Supplemental Nutrition Assistance Program (SNAP). Over the next decade, the OBBBA will cut nearly $200 billion from SNAP funding.

The Center on Budget and Policy Priorities says, “millions of people, including children, seniors, veterans, and individuals with disabilities, would see the food assistance they need to afford groceries terminated or cut substantially.”

The timing of this is atrocious: Grocery prices have risen 23.6% since 2020, according to the U.S. Department of Agriculture, and ongoing tariffs may further exacerbate the inflation.

Most of my clients anticipated these changes following President Trump’s election, so they aren’t overly concerned about the impact on their own financial situations. However, many have expressed empathy and concern for individuals who may be negatively affected by the bill’s provisions.

8. Major cuts to Medicaid and Medicare

Perhaps most alarming for many, the Big Beautiful Bill includes major cuts to Medicaid and Medicare.

• Medicaid: The nonpartisan Congressional Budget Office (CBO) estimates nearly 12 million people will lose Medicaid coverage by 2034, due to nearly $1 trillion in cuts to the program.
• Medicare: The OBBBA makes lawful immigrants ineligible for Medicare, even if they’ve already paid in to the program. We’ll also see $490 billion in cuts between 2027 and 2034.

There are other implications on healthcare. Experts predict the BBB will lead to rural hospital closures and that getting coverage through the Affordable Care Act (aka Obamacare) will become more challenging.

I recommend that clients report accurate and up-to-date income to avoid disqualification or overpayment of benefits for SNAP.
For Medicaid specifically, I encourage them to consult with an attorney or financial professional experienced in establishing Medicaid-Compliant Trusts, which can help disabled individuals legally shelter income and assets while maintaining eligibility.
Ultimately, I want my clients to connect with a social worker, elder law attorney, or nonprofit organization to ensure they are making informed decisions and the necessary adjustments to preserve their benefits.

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How to navigate changes from the Big Beautiful Bill

This list barely scratches the surface. For instance, parents will want to consider the new Trump savings accounts (with the $1,000 government contribution for newborns born between 2025 and 2028), and serious investors may want to rethink investments as the federal government prioritizes fossil fuels over renewable energy.

In the coming years, you’ll hear pundits discussing the BBB’s macroeconomic effects, like how the bill:

• Will increase the deficit (the bill will add $3.4 billion over the next decade, per the CBO)
• May affect job growth
• Creates a massive wealth transfer from the poor to the wealthy
• Could lead to a continued downgrade in the U.S. credit rating

These are very real ramifications worth considering—but in times of economic uncertainty, average Americans like you and me aren’t thinking about GDP and government credit ratings. We’re thinking about how we’ll feed our families, how we’ll afford our prescriptions, and how we’ll stay employed in a world that increasingly relies on artificial intelligence.

I don’t have all the answers to these questions, nor does anyone. But speaking with a financial advisor through a service like Money Pickle, or simply spending 10 minutes a day learning about finance could go a long way. At a minimum, focus on the following:

• Always learn new skills to make you employable.
• Keep money in a high-yield savings account to build an emergency fund.
• Contribute what you can afford to retirement accounts.
• Cut discretionary expenses you can live without.
• Avoid high-interest credit cards, unless there’s an emergency.
• Work with an accountant or use top-rated tax software to maximize your tax return.