How HR-1, the “One Big Beautiful Bill Act” Could Reshape Your Benefits
6 min read
The U.S. House of Representatives just passed a sweeping bill nicknamed the One Big Beautiful Bill Act (H.R. 1), and it could mean major changes to how millions of Americans access government help. From healthcare to food to tax credits, lots of federal benefit programs could be altered by this legislation.
It hasn't passed yet, and will have to go through the Senate process before it could be signed into law, but the implications are still important to be aware of.
We'll tell you how it could affect the benefits you or your family rely on — broken down by category.
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Medicaid: Millions Could Lose Coverage
Medicaid is the main way low-income Americans get access to healthcare benefits. This bill proposes major structural changes that could significantly reduce who qualifies, and what they get.
What’s proposed:
Cuts of up to $1 trillion in Medicaid funding, representing one of the deepest reductions in the program’s history.
Stricter work requirements that could disqualify people who can’t prove they’re working or actively seeking work.
A ban on gender-affirming care for all ages under Medicaid and CHIP, including hormone treatments and surgeries.
Who it affects:
Roughly 87 million Americans currently use Medicaid.
The Congressional Budget Office projects that 13.7 million people could lose their coverage under this bill.
What’s been amended:
Lawmakers struck a proposal that would have cut Medicaid payments to nonprofit family planning clinics that offer abortion services.
Food Assistance: New Work Requirements for SNAP
This bill takes a complex approach to food assistance. While the House ultimately added some protective measures for vulnerable groups, the original version of H.R. 1 included deep proposed cuts to the Supplemental Nutrition Assistance Program (SNAP) and limitations on the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). These cuts would have reshaped access to food support for millions of Americans.
What’s proposed:
Expanded work requirements for SNAP would apply to all able-bodied adults without dependents between ages 18–64 (up from 49), requiring them to work at least 20 hours per week to keep their benefits. This change could lead to benefit loss for people with unstable schedules, caregiving duties, or health limitations.
Time limits and benefit suspensions could apply to individuals who fail to meet work reporting requirements, including those in areas with limited job availability.
Reduced flexibility for states: The bill limits waivers and administrative discretion, making it harder for states to manage SNAP efficiently during downturns or localized hardship.
Budget caps on SNAP would force the USDA to cut participation or reduce benefit amounts if spending exceeds targets.
What was added to lessen the impact:
Language was included requiring states to certify that any SNAP changes will not result in lost benefits before implementing them.
Exemptions for seniors aged 55–64 from new work requirements.
Protections for parents or caregivers of children as young as 7 who can’t afford summer childcare — shielding them from benefit loss under the new rules.
WIC participation is protected, with a clause prohibiting any reduction in enrollment levels regardless of future funding decisions.
Who it affects:
Over 40 million Americans currently receive SNAP, including low-income workers, children, seniors, and people with disabilities.
More than 6 million individuals rely on WIC, including pregnant women, new mothers, and young children under age 5.
The USDA estimates that up to 2 million people could lose SNAP benefits if the new work requirements take full effect — with older adults, part-time workers, and caregivers at the highest risk.
This section of the bill walks a fine line: it includes protections for some, but still carries the potential for large-scale benefit loss if the structure and enforcement of work requirements aren’t carefully managed.
Earned Income Tax Credit (EITC): Expanded Access
The Earned Income Tax Credit helps low- and moderate-income workers get money back at tax time. The bill introduces new ways to calculate and expand eligibility.
What’s proposed:
Allows filers to use the previous year’s earned income if it results in a higher credit.
Increases the credit’s percentage rate and maximum amount.
Expands age eligibility, opening the credit to more adult workers without children.
Who it affects:
The EITC lifts millions of families out of poverty every year, and changes could especially benefit those with fluctuating income or inconsistent work hours.
Child Tax Credit (CTC): Now Fully Refundable
The Child Tax Credit is one of the most effective tools for reducing childhood poverty, and this bill restores key provisions that once made it a monthly lifeline.
What’s proposed:
Makes the CTC fully refundable, meaning families can receive the full benefit even if they have little or no taxable income.
Reintroduces advance monthly payments, giving families consistent help throughout the year rather than a single annual refund.
Who it affects:
During the 2021 expansion, about 61 million children received benefit payments. Analysts credited this version of the CTC with cutting child poverty nearly in half that year.
Affordable Care Act (ACA): Larger Enrollment Windows; Price Increases
The ACA remains a key way millions get health coverage, and this bill makes some access improvements, but it also leaves out a major affordability tool that many depend on.
What’s proposed:
Extends the open enrollment period to at least three months (up from six weeks).
Lifts restrictions on special enrollment, allowing more flexibility to sign up after life events.
What’s missing:
The bill does not extend enhanced premium tax credits, which are set to expire at the end of 2025. Without them, nearly all marketplace enrollees will see higher premiums. A typical family of four could pay $313 more per month and face $900 more in out-of-pocket costs.
Households earning just above the income limit (e.g., $128,600 for a family of four) would lose eligibility for subsidies entirely.
Why it matters:
The enhanced credits helped ACA enrollment reach 24.2 million in 2025, up from 12 million in 2021.
If the credits expire, enrollment could drop by one-third, potentially leaving 8 million people uninsured.
The bill makes signing up easier, but without restoring those tax credits, coverage could quickly become out of reach for many.
What’s Next for HR-1?
The bill has cleared the House, but still needs Senate approval—and it’s expected to change significantly in the process. Some provisions may be softened or removed entirely before passing both houses of Congress and reaching the President’s desk.