The House reconciliation bill, dubbed the “One, Big, Beautiful Bill,” aims to improve family finances through various proposals, including $1,000 “Trump Accounts” for newborns and an increased child tax credit from $2,000 to $2,500. House Speaker Mike Johnson emphasized that these measures are designed to assist hardworking American families. However, the bill’s work requirements may negatively affect low-income families. The Congressional Budget Office forecasts that the poorest households could lose approximately $1,600 annually from 2026 to 2034, largely due to cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
House Republicans also anticipate that around 20 million children may not receive the full child tax credit, primarily because their families’ incomes will not meet the new threshold of at least $40,000 annually. This shift could further exclude 3 million additional children who currently receive partial benefits. Unlike enhancements made during Biden’s presidency, which fully refunded the child tax credit for low-income families, this plan is criticized as favoring wealthier families.
Moreover, proposed cuts to SNAP may affect over 7 million individuals, including 2 million children, marking one of the most significant reductions in food assistance history. The introduction of work requirements for families with children and the shift of funding responsibilities to states could jeopardize food access.
Additionally, the bill entails substantial cuts to Medicaid and healthcare programs, potentially leaving around 4.2 million individuals uninsured by 2034 and increasing premiums for families. The legislation thus poses considerable concerns regarding its impact on low-income families, children’s access to benefits, and overall financial stability.
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