You’ve probably heard a lot about the “One Big Beautiful Bill” lately—and I totally understand if you’re feeling overwhelmed. This bill, officially known as HB1, is enormous. It spans over 1,000 pages and could impact nearly every federal assistance program that low income Americans rely on.
After hours of reviewing the text and the coverage around it, here’s a clear breakdown of what’s inside and what it could mean for you. Just remember we’re not lawyers – we’re poverty resource researchers.
It’s Not Law Yet
First, it’s important to understand that this bill is not law yet. It passed the House of Representatives by a very narrow margin, but it still has to go through the Senate. If the Senate makes any changes, it will go back to the House for another vote. Lawmakers are aiming to finalize everything by July 4, but that’s far from guaranteed.
If you’re concerned about this bill, now is the time to contact your senators. You can find their information at congress.gov.
SNAP Changes
The bill introduces major changes to the Supplemental Nutrition Assistance Program (SNAP). Some are highly technical, but their impact could be enormous for low income households.
- Freezing the Thrifty Food Plan: This change could undo the modest SNAP increase from 2021 by locking in outdated pricing models.
- Expanding Work Requirements: Able-bodied adults without dependents would need to meet work requirements from ages 18 to 65, up from the current limit of 55. Fewer exemptions would be available.
- Limiting State Flexibility: States would be restricted to exempting only 1% of recipients from work requirements (down from 8%) and face financial penalties for administrative errors.
- Reducing Deductions: Elderly and disabled recipients may lose utility-related deductions, and internet costs will no longer count toward shelter deductions.
- Eliminating SNAP-Ed: Nutrition education programs that promote healthy eating habits and provide farmers market incentives would be discontinued.
- Increasing State Costs: States would be forced to shoulder more of the program’s cost, which could lead to delays or disruptions.
Some sources have claimed that states might be able to shut down their SNAP programs entirely. While that seems unlikely based on the bill’s actual language, the increased burden could create serious problems for struggling states.
Medicaid Cuts and New Requirements
The bill calls for $625 billion in cuts to Medicaid, which could impact millions of people.
- 7.6 to 15 million people could lose coverage, depending on how states respond.
- Work requirements would begin in 2029 for people covered through Medicaid expansion, requiring 80 hours of work, school, or volunteering per month.
- Cost-sharing would be introduced for those with incomes above the poverty line, capped at $35 per service or 5% of family income.
- States would bear more financial responsibility, which could lead to service cuts or eligibility reductions.
- New fraud checks include quarterly reviews of death records and tighter controls on who can bill Medicaid.
Student Loan Restrictions
The bill also reshapes federal student loans and financial aid.
- Loan limits: New annual and lifetime caps would apply, with a $200,000 total limit.
- Reduced repayment options: Future loans would only qualify for a standard plan or a new “Repayment Assistance Plan.”
- Deferments eliminated: Economic hardship and unemployment deferments would be removed.
- Forbearance: Limited, with exceptions for medical professionals.
- Pell Grants would no longer be available to part-time students.
- Aid based on median school cost rather than the actual cost of the school you attend.
- Risk-sharing with schools: Institutions would face penalties if too many of their students default, which could reduce predatory lending.
The bill still appears to support Public Service Loan Forgiveness, and total and permanent disability discharges do not appear to be affected at this time.
Tax Changes That Miss the Mark
Although the bill includes tax changes, many of them are structured in ways that do not benefit low income households.
- Child Tax Credit expansion is phased in based on income, meaning those with the lowest incomes get the least help.
- Earned Income Tax Credit changes would require a certificate to claim a child, potentially delaying or denying refunds for families who depend on them.
- Ending Direct File would eliminate one of the easiest ways for low income earners to file taxes for free.
- MAGA Accounts: These new tax-advantaged savings accounts for kids come with a $1,000 government match, but only for children born between 2025 and 2029—and only under specific conditions.
When Would These Changes Happen?
If passed, some provisions would begin as early as July 2025, while others wouldn’t take effect until 2029 or 2030. Implementation timelines vary by section, and we’ll share specific dates as they become clearer.
What You Can Do Right Now
- Contact your senators at congress.gov and share your concerns.
- Apply for benefits you qualify for now, before rules potentially change.
- Start disability paperwork if you’re not already receiving SSDI or SSI.
- Stay informed by subscribing to Low Income Relief’s email list for updates and alerts.
Relief Recap
If all of this feels like a lot, you’re not alone—and that’s exactly why we created Low Income Relief. We’ll continue monitoring this bill every step of the way and break down what it means for you in plain English. As always, we’ll share updates, deadlines, and action steps to help you protect your benefits and get the support you need. Stick with us—we’ve got your back.