Hey there! I’m Andrei Jikh, and today I want to walk you through one of the most significant pieces of legislation from President Trump’s tenure—the Big Beautiful Bill. This new law, freshly passed by both the House and Senate and signed on July 4th, is packed with changes that will affect your taxes, health care, student loans, energy bills, retirement accounts like the Roth IRA, and the broader US economy. If you’re into Bitcoin, Crypto, BTC, Blockchain, CryptoNews, or Investing, this breakdown is especially crucial because these changes will ripple through the financial ecosystem in ways that could impact your portfolio and personal finances.
There’s a lot of confusion, controversy, and complexity surrounding this bill, so I’m here to cut through the noise, explain the core changes, and share what they mean for you and the markets. From new tax breaks on tip income to caps on student loan borrowing, from Medicaid cuts to shifts in energy subsidies, and major Roth IRA reforms—this bill touches almost every aspect of money management in America.
Understanding the Tax Changes: What You Keep and What You Don’t
Let’s start with taxes, because that’s where most people feel the impact immediately. First off, the bill eliminates federal taxes on tip income and overtime pay—but only up to a certain amount. This is great news if you work in a service job or regularly put in extra hours, as it means more money stays in your pocket.
Another big win for many is that the Trump tax cuts from 2017, which were originally set to expire at the end of this year, are now made permanent. This means the lower tax rates and other benefits won’t disappear, providing more certainty for taxpayers and investors alike.
Between 2025 and 2028, the bill also introduces some short-term tax breaks targeting specific income groups. For example, if you earn under $150,000 as an individual or $300,000 as a couple, you’ll benefit more from these breaks. However, if you earn above these thresholds, the benefits begin to phase out.
New Deduction on Car Loan Interest for US-Assembled Vehicles
Planning to buy a new car? Here’s a notable change: the bill introduces a new deduction for interest paid on car loans, but only for new cars whose final assembly happens in the US. This is a clever way to support domestic manufacturing without being overly restrictive—after all, many cars have parts sourced globally, and some assembly might happen abroad, but as long as the final assembly is stateside, you qualify.
The deduction can be up to $10,000 per year, which sounds generous. But analysts estimate the actual savings will be less than $500 annually for most people. Still, every bit helps, especially if you’re financing a new vehicle.
Student Loans: Controlling Debt, Not Forgiving It
Student loans are a hot topic, and the bill takes a different approach than outright debt forgiveness. Instead of wiping out existing debt, it focuses on controlling future borrowing by setting firm caps:
- $100,000 limit for graduate students
- $200,000 limit for medical and law students
Currently, under the Graduate PLUS Loan program, there’s virtually no cap on borrowing as long as the school certifies the cost. This has led to ballooning student debt levels that many lawmakers see as unsustainable. By capping loans, the bill aims to rein in this trend and prevent students from accumulating unmanageable debt.
Personally, I think this is a sensible approach that balances the need for education access with fiscal responsibility.
Child Tax Credit Gets a Modest Boost — But Not Everyone Benefits
If you have kids, you’ll be interested in this: the child tax credit is increasing from $2,000 to $2,200 per child. Starting in 2026, this amount will also adjust for inflation annually, roughly by 2-3%.
While this is a positive step, it’s not as high as the $2,500 per child originally proposed by the House. There’s also a catch: not every family will qualify for the full amount. If your household income is too low, you won’t get the full credit. In fact, it’s estimated that about 17 million children won’t see the full benefit because their families don’t meet the income threshold.
Healthcare Overhaul: Stricter Medicaid Rules and Potential Coverage Loss
Healthcare is one of the most divisive parts of the bill. The Big Beautiful Bill cuts approximately $800 billion from Medicaid over the next decade. This doesn’t mean Medicaid is going away, but the program’s rules will tighten significantly.
For example, adults without children will need to work at least 80 hours a month to stay enrolled. They’ll also have to prove their income and residency twice a year instead of once. Missing paperwork deadlines—even accidentally—could result in losing coverage.
The government’s rationale is to reduce spending and encourage more people to enter the workforce, which makes sense economically. However, the Congressional Budget Office estimates that up to 12 million Americans could lose access to healthcare because of these changes.
This could create challenges for older adults, people in between jobs, and part-time workers, so it’s something to watch closely if you or your family members rely on Medicaid.
How Media Coverage Shapes Your View of the Bill
You might have noticed that depending on your news source, the Big Beautiful Bill is either a disaster or a triumph. To get a clearer picture, I used a tool called Ground News, which aggregates and compares news stories across the political spectrum.
What I found was fascinating:
- Left-leaning outlets frame the bill as harmful to seniors, children, and low-income families.
- Centrist sources focus on the $3.3 trillion price tag and the narrow margin by which it passed.
- Right-leaning sources hail it as a massive win for tax reform and government efficiency.
Ground News lets you see all perspectives side-by-side, helping you avoid echo chambers and form your own informed opinion. If you want to explore it yourself, check out Ground News and use my link for 40% off unlimited access.
Food Assistance Changes: SNAP Program Gets a Work Requirement
Next up: food prices and food assistance. The bill changes the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, which supports over 40 million Americans.
Under the new rules, SNAP benefits will adjust more slowly with inflation, and adults aged 18-55 without children must work at least 80 hours per month to qualify. Critics say this could remove millions from the program, while supporters argue it encourages self-sufficiency and reduces dependency on government aid.
Energy Policy Shift: From Green to Traditional Fuels
If your utility bills have been climbing, this bill may be part of the reason why. It redirects funding away from green energy initiatives like solar and energy efficiency upgrades, and instead boosts investment and subsidies for oil, gas, and nuclear power.
Supporters claim that increasing domestic production of traditional fuels will lower energy prices over time by reducing reliance on subsidies and foreign sources. However, this also means fewer tax credits for solar panels and energy-efficient home improvements, potentially making those options more expensive.
Additionally, states will have the option to impose extra fees on electricity bills if usage exceeds certain limits—a kind of stealth tax on heavy energy users. As someone living in Las Vegas, where AC use is high, this is definitely a concern.
Roth IRA Overhaul: The End of the Backdoor Roth Strategy
Now for a major change that will affect many investors: the Roth IRA. Currently, high-income earners who exceed the Roth IRA income limits use a loophole called the backdoor Roth IRA, where they contribute to a traditional IRA and then convert it to a Roth IRA tax-free.
Starting in 2026, this loophole will be closed. No more after-tax IRA conversions will be allowed. If you’ve been using this strategy regularly to build tax-free retirement income, you need to start exploring other options now.
The government’s reasoning is twofold: it will raise tax revenue and limit benefits that mostly favor wealthy individuals, which they argue wasn’t the original intent of Roth IRAs.
Introducing Trump Retirement and Savings Accounts (TRSAs)
To replace Roth IRAs, the bill introduces a new retirement account called the Trump Retirement and Savings Account (TRSA). Here’s what you need to know:
- No income limits for contributions
- The federal government will contribute $1,000 to the account for every American baby born between January 1, 2025, and December 31, 2028
- You can contribute up to $5,000 per year in after-tax income
- Funds can only be invested in index funds tracking the overall US stock market
This is designed to encourage long-term investing in the US economy. For example, a $1,000 investment made at birth with an average 8% annual return could grow to about $4,000 by age 18, over $10,000 by age 30, and more than $148,000 by age 65.
How the Bill Benefits the Wealthy
It’s no secret that the Big Beautiful Bill offers significant benefits to the rich. If you make over $1 million a year, expect an average 3% boost in after-tax income—translating to about $75,000 in savings annually, according to the Tax Policy Center.
How does this happen? A few key changes:
- The SALT (State and Local Tax) deduction cap is increased, allowing wealthier taxpayers to deduct more
- Itemized charitable deductions are adjusted, slightly reducing benefits for the very wealthy while allowing middle-income earners to claim up to $2,000 in charitable deductions without itemizing
Paying for the Bill: Deficits, Borrowing, and Inflation
With a price tag exceeding $3 trillion over the next decade, the big question is: how will the government pay for this?
The Congressional Budget Office projects that most of the bill’s cost will be covered by borrowing more money, which adds to the national deficit. In a high interest rate environment, this is concerning because the government has limited options:
- Raise taxes — unlikely given the current political climate
- Cut government spending — a missed opportunity given recent votes
- Let the system fail — politically unacceptable
- Borrow more money or print more currency — the most probable path
More borrowing and money printing typically lead to inflation, especially asset inflation. This means prices of stocks, real estate, and other hard assets go up, benefiting those who already hold wealth, while people without assets often get left behind.
This dynamic also positions the president and his family to benefit from owning hard assets like Bitcoin, which tend to appreciate significantly during inflationary periods. I’ve done entire videos on this topic and will likely cover it again soon.
Final Thoughts on the Big Beautiful Bill and Its Impact
The Big Beautiful Bill is vast, complex, and packed with changes that will affect nearly every American. From tax breaks and student loan caps to healthcare reforms and retirement account overhauls, the ripple effects will be felt at home, in the market, and across the economy.
For investors, especially those involved in Bitcoin, Crypto, BTC, Blockchain, and CryptoNews, understanding these changes is crucial. The shift toward borrowing, inflation, and asset appreciation means smart investing strategies will be more important than ever.
What do you think about these changes? Are you adjusting your investment strategy or financial planning because of the bill? Feel free to share your thoughts—I’d love to hear them.
And if you want to stay informed from multiple perspectives, don’t forget to check out Ground News for unbiased news aggregation.
Thanks for reading, and here’s to making the most of your money in these changing times!
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