Trump’s Big Beautiful Bill Helps Out Boomers, But Young People Pay the Price

There’s been a lot of talk about the Big Beautiful Bill and its impact on Americans’ finances. And so far, there are some clear winners from the bill.

Older Americans, for example, just got handed a pretty sweet $6,000 tax deduction that could spur a change Trump touted throughout his presidential campaign — the elimination of taxes on Social Security. Now, nearly 90% of Social Security recipients are expected to not have to pay taxes on those benefits. 

But while baby boomers may walk away happy in the wake of the Big Beautiful Bill, younger Americans could end up being the losers. Here are some of the reasons why.

Medicaid cuts could be painful

Cuts to Medicaid could create a situation where millions of people lose access to critical health benefits. While some people may be in favor of implementing stricter work requirements for Medicaid, it could place an undue burden on Americans with young children and other constraints.

Even though there are plenty of older Americans who rely on Medicaid for critical services, the proposed cuts may be more likely to impact younger folks more so than the seniors who rely on the program for long-term care needs.

Healthcare subsidies could become harder to get

Many younger Americans get health coverage through Marketplace plans. And for a lot of people, the only way they can afford that coverage is through subsidies. Now, some enrollees could risk losing their Obamacare coverage following changes set forth in the bill, like stricter requirements for subsidies and the end of automatic reenrollment.

SNAP cuts could create a hunger crisis

Many Americans rely on the Supplemental Nutrition Assistance Program, or SNAP, to put food on the table for their families. Cuts to the program could impact young adults and children alike as states scramble to make up for pulled federal funding.

Student loan caps could hurt borrowers

Financing a degree with federal student loans is generally more beneficial and affordable than borrowing privately for an education. Private student loans can come with exorbitant interest rates, and private borrowers often miss out on the protections that come with federal student loans, like forbearance, deferment, loan forgiveness, and income-based repayment options.

The Big Beautiful Bill puts a limit on unsubsidized student loans for graduate studies and professional degrees, making it harder for young people to finance an education.

The silver lining

The Big Beautiful Bill isn’t all bad for younger Americans. It includes a tax break for tipped workers and a more generous child tax credit for qualifying families. It also includes an expanded SALT (state and local tax) deduction, which could help younger workers in high-cost states.

But one other thing the bill does is allow for the debt ceiling to be raised, which is something younger generations could pay for down the line. So it’s fair to say that while there may be some perks for younger folks folded into the new legislation, for the most part, younger Americans may be getting the short end of the stick.

The post Trump’s Big Beautiful Bill Helps Out Boomers, But Young People Pay the Price appeared first on 24/7 Wall St..