On the Fourth of July, President Trump signed into law what he named the “one big beautiful bill,”1 which the Congress had passed the day before. (Its official name is “The Act.”) The debate leading into its final passage was emotional and divisive. The vote itself was virtually along party lines.
We have analyzed the final law through the prism of faith, family, and freedom. Here is what we found.
- Planned Parenthood, America’s largest provider of abortion and transgender procedures, has been cut off from Medicaid funding for at least one year. That is a good start! We want a permanent defunding of Planned Parenthood.
- The standard deduction that a married couple can claim on their tax returns has been raised from $30,000 to $31,500. This is good news for working families.
- Seniors can claim an additional standard deduction bonus of $6,000 to help offset taxes on Social Security.
- The per-child tax credit was raised from $2,000 to $2,200. Every little bit helps!
- Employees who receive tips in their work will not have to pay taxes on the first $25,000 of tip income. This deduction phases out for individuals with $150,000 of income and couples with $300,000 of income.
- The first $12,500 of overtime pay ($25,000 for married couples) is tax-free. This deduction phases out for individuals making $150,000 a year and for couples making $300,000 a year.
- The law increases funding for educational vouchers and allows the vouchers to be used at all schools, including Christian and other faith-based schools. (Recent Supreme Court rulings have said that religious schools cannot be discriminated against.)
- Parents may open a “Money Accounts for Growth and Advancement” account upon the birth of each of their children between January 1, 2025 and December 31, 2028. The law provides for $1,000 to be deposited into this new special “savings account” indexed to the stock market. The idea is to help all children get a good start on financial security.
- The new law includes significant funding increases for securing the US border and enforcing our immigration laws. This will help prevent the massive illegal immigration that took place between 2021 and 2024 from happening again. A secure border helps stop human trafficking and inhibits illegal drugs from entering the country.
One of the strongest criticisms of the new law claims that it will “gut” the “safety net” for low-income Americans. Here is what you should know.
- Medicaid will no longer directly cover illegal aliens for the simple reason that American citizens should be served first. America does not have unlimited resources.
- In order to receive government food assistance, if you are an able-bodied, childless adult between the ages of eighteen and sixty-four, you will be required to work, volunteer, or attend school or a trade program for twenty hours per week. Research shows that working provides people with dignity and a sense of self-worth. The hope is that this reform will prevent the chronic dependency that often accompanies welfare programs.
- Parents with children under fourteen are exempt from the work requirements.
- The Medicaid program itself is not being “cut.” It will still receive 20% more funding over the next ten years. As Secretary of the Treasury Scott Bessent said, “Only in D.C. is a 20% hike to Medicaid over 10 years considered a ‘cut.’”
JDFI is committed to promoting pro-life, pro-family, and pro-faith public policy. We will continue to work with our elected officials to help all Americans have a better chance at success.
- H.R. 1, One Big Beautiful Bill Act, Pub Law No. 119-21, 119th Congress (2025-2026), https://www.congress.gov/bill/119th-congress/house-bill/1.
