US Tax Bill Cuts Medicaid Funding, Changes Elder Care Eligibility

President Donald Trump's 2025 tax landscape features significant changes stemming from the 'One Big Beautiful Bill' (OBBB), which maintains seven federal income tax brackets with inflation-adjusted thresholds and increases the standard deduction, including additional benefits for seniors through a new bonus deduction. The OBBB also expands the child tax credit and raises the SALT deduction cap, aiming to ease financial burdens for lower- and middle-income households and retirees through 2028. Trump's administration has emphasized estate planning strategies such as generation-skipping trusts to protect family legacies from estate taxes, which are set to revert to lower thresholds in 2026, potentially increasing tax liabilities. Despite pledges to support family caregivers with a tax credit, legislation has yet to pass, although bipartisan bills like the Credit for Caring Act seek to provide up to $5,000 in credits for eligible caregivers. Additionally, the new tax law is projected to cut nearly $1 trillion from Medicaid over the next decade, imposing work requirements for some recipients and affecting states that expanded Medicaid, which may impact access to care and reimbursement rates for providers. Meanwhile, the Social Security Administration is recouping overpayments by reducing beneficiaries' checks, with guidance encouraging seniors to monitor their payments via official channels to avoid unexpected withholdings.