What Happened?

Whether the new tax law puts money in your pocket or takes health and food benefits out of your household's reach may depend on where your income falls, and Congress is about to hear how it's playing out. The House Committee on Ways and Means scheduled an Oct. 6 hearing in Collierville, Tennessee, to examine the rollout of the One Big Beautiful Bill Act (OBBBA), a reconciliation law that made most individual tax cuts from the 2017 Tax Cuts and Jobs Act permanent and added new breaks for tips, overtime pay, and business investment. The law also paired those tax cuts with roughly $880 billion in Medicaid reductions and about $187 billion in cuts to food assistance over the next decade.

Why Does it Matter to Me?

The Congressional Budget Office (CBO) found that households at the top of the income scale will gain an average of about $13,600 per year from 2026 through 2034, while households at the bottom will lose an average of about $1,200 per year, primarily because of cuts to Medicaid and food assistance.

The Ways and Means Committee says the law gives the average family an additional $1,300 tax cut compared with prior law. The CBO estimated the Medicaid cuts alone will leave about 7.5 million more people uninsured by 2034.

Both Sides, Now

The hearing will be led by Chair Rep. Jason Smith (R-MO) and Ranking Member Rep. Richard Neal (D-MA). Republicans have emphasized benefits for workers and businesses, pointing to the permanent extension of the qualified business income deduction, which lets eligible business owners deduct up to 20 percent of qualifying income, and the restoration of 100 percent immediate expensing for certain business property purchases.

Lobbying disclosures show Intuit Inc. reported $900,000 in the third quarter of 2025 on the law's rollout and small-business development, and Business Roundtable Inc. reported $170,000 in the fourth quarter of 2025 on corporate taxation and the law.

What Happens Next?

The Oct. 6 hearing in Collierville, Tennessee, will offer an early look at how the law is playing out in practice. A key Medicaid change takes effect Dec. 31, when certain adults covered through Medicaid expansion must show at least 80 hours per month of work, education, or other qualifying activities to keep their coverage, though states may act earlier and exemptions apply.

Additional Medicaid changes, including new cost-sharing requirements and restrictions on how states finance their programs, phase in over several years.

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