Republican ‘Big Beautiful’ Bill Offers Tax Boosts but Cuts Aid for Low-Income Families and Children

The House-passed reconciliation package known as the One Big Beautiful Bill Act proposes sweeping changes to family financial support, but analysis shows low-income families and children could face significant losses.

The legislation, championed by House Republicans, includes $1,000 "Trump Accounts" for newborns and an enhanced $2,500 child tax credit beginning in 2025. It also projects a potential $13,300 increase in take-home pay for average families with two children, according to GOP estimates.

The White House and American flags | Source: Pexels

“We’re trying to help hardworking Americans who are trying to provide for their families and make ends meet,” said House Speaker Mike Johnson (R-La.) in a June 8 interview with ABC News.

However, new work requirements and eligibility rules could reduce or eliminate support for many low-income families. A June 12 Congressional Budget Office report indicates that households in the lowest income decile may lose about $1,600 annually through 2034 due to cuts in Medicaid and the Supplemental Nutrition Assistance Program (SNAP).

Advocates warn the enhanced child tax credit would exclude about 20 million children—up from 17 million—because their families earn too little to qualify. “It is raising the credit for wealthier families while excluding those vulnerable families,” said Adam Ruben of Economic Security Project Action.

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The bill also proposes $300 billion in SNAP cuts, potentially ending or reducing food assistance for over 7 million people, including more than 2 million children, according to the Center on Budget and Policy Priorities.

The bill is currently under Senate review.