One Big Beautiful Bill Act Turns One: What's Changed So Far

The One Big Beautiful Bill Act, the sweeping tax and spending law President Donald Trump signed on July 4, 2025, has now been in effect for one year. New reporting this week shows the law has delivered tax cuts to most households while also tightening rules for federal aid programs like Medicaid and SNAP.

What Happened?

According to CBS News, the law extended tax provisions from the 2017 Tax Cuts and Jobs Act that were set to expire at the end of 2025. It also kept the top individual tax rate at 37 percent instead of letting it rise back to 39.6 percent.

The nonpartisan Urban-Brookings Tax Policy Center, cited by CNN, found that about 85 percent of tax filers will see a tax cut in 2026. However, the benefit was uneven. Households in the bottom fifth of earners saw after-tax income rise by less than one percent, while the top fifth gained roughly 3.4 percent.

On the spending side, the law added new work and paperwork requirements for SNAP food assistance. The Center on Budget and Policy Priorities, a left-leaning research group, told CNN that SNAP enrollment dropped by more than four million people between July 2025 and March 2026.

The law also ended federal tax credits for electric vehicles. Cox Automotive data reported by CBS News showed EV sales fell 22 percent in 2026 compared with the year before.

Why It Matters

Beyond taxes, the law created new education savings accounts for children called Trump Accounts, which opened for deposits on July 4, 2026. Treasury Secretary Scott Bessent told CBS News that more than six million of these accounts have already been opened.

The law's effects are still unfolding. Major changes to Medicaid work requirements and student loan repayment plans, including the end of the SAVE income-driven repayment plan, are not scheduled to take effect until later in 2026 or in 2027.

Reaction to the law remains sharply divided along party lines. White House spokesman Kush Patel told CBS News the law is delivering both short-term relief and long-term economic growth. Democratic critics, including strategists working on 2026 midterm campaigns, argue the law's cuts to safety-net programs will hurt working families more than its tax breaks help them.

What Happens Next

With midterm elections approaching in November 2026, both parties are expected to use the law's record as a central campaign issue. Additional provisions, including new Medicaid eligibility checks and SNAP cost-sharing rules for states, are set to phase in through 2028.