When does the One Big Beautiful Bill take effect?
Published July 18, 2025 by the USAFacts team
The One Big Beautiful Bill, signed into law on July 4, is set to introduce a host of changes to everything from tax reform to government assistance programs to immigration and border policy. It introduces some brand-new policies and expands, restricts, or ends others.
A number of these changes took effect the moment President Trump’s pen struck the dotted line — your 2025 tax return could reflect some of them. Others will go into effect in the coming years, with some not scheduled to arrive until 2028.
This visualization explains what is happening — and when, piece by piece.
Some OBBB policies are effective immediately while others will come later
Effectiveness dates for new, existing, and ending programs and policies in the One Big Beautiful Bill Act
Tax policy
The new bill cements some provisions of the 2017 Tax Cuts and Jobs Act, including the individual tax brackets and the increased standard deduction, which now starts at $15,750 for single filers and $31,500 for married couples. Both will be adjusted each year for inflation.
The bill introduces other changes to existing tax law that are effective immediately and have no end date. The Child Tax Credit now requires that taxpayers have a work-eligible Social Security Number. The credit itself increases to $2,200 in 2025 and will also change with inflation annually.
Four net-new tax provisions apply immediately but stop in 2028:
- Service workers will not have to pay federal taxes on up to $10,000 of tip pay
- Up to 250 hours of overtime pay will be exempt from federal taxing
- Taxpayers 65 and older can deduct an additional $6,000
- Car owners can deduct interest on auto loans
At least four new deductions from the OBBB apply to 2025 taxes
Effectiveness dates for tax policies in the One Big Beautiful Bill Act
Other provisions around deductions change in 2025 and revert in 2030. The deduction for state and local tax payments (SALT), which allows people to reduce their federally taxable income by the amount they pay in state and local taxes, goes from $10,000 to $40,000 in 2025. It’ll increase year after year before dropping back to $10,000 in 2030.
In September 2025, the bill cuts existing tax credits for purchasing a used electric vehicle.
In 2026, two more indefinite changes come into force:
- A limit on itemized tax deductions for people above a certain income level
- An increase in the estate and gift tax limit to $15 million (i.e., the amount of a person’s estate they can give away before being taxed)
And in June 2026, the bill cuts tax credits for energy-efficient home construction.
It also establishes a new type of tax-advantaged bank account for children, called “Trump accounts,” that allow up to $5,000 in annual contributions until the account holder turns 18. The federal government will seed the accounts with $1,000 for children born between 2025 and 2028.
Government assistance programs
The new legislation restricts certain government assistance programs, including SNAP and Medicaid, mostly on a delayed timeline.
Two provisions — expanding work and income requirements for SNAP — have no explicit start date and may be put in place as early as 2025. Beginning in 2028, states will be required to cover up to 15% of SNAP costs; previously, it was fully funded by the federal government.
Medicaid reforms also include changes to how the program is funded. Beginning in fiscal year 2026, states that expanded Medicaid under the Affordable Care Act will have their federal matching funds gradually decrease. By the end of that year, states will also need to impose work restrictions, requiring beneficiaries to work or engage in community service for the equivalent of 80 hours a month.
New restrictions on Medicaid and SNAP start as early as 2025 under the OBBB
Effectiveness dates for government assistance policies in the One Big Beautiful Bill Act
Student loans
The bill also introduces changes to how student loans will be repaid, beginning in July 2026.
That year, the existing federal student loan forgiveness plans (including SAVE, ICR, and PAYE) will stop operating (though loans offered before July 2026 will be honored). Borrowers will have two options under the new law:
- a standard repayment plan of fixed payments over a 10- or 25-year timeline
- an extended income-based repayment plan, with payments of between 1% and 10% of their monthly income for up to 30 years
It also sets a cap of $100,000 for graduate school borrowers and $200,000 for professional school borrowers, eliminating grad PLUS options. Parent PLUS loans starting in July 2026 or later will have a lifetime cap of $65,000 and a $20,000 annual cap.
In 2027, the bill gets rid of payment deferral options for economic hardship or unemployment.
The OBBB phases out student loan programs and adds new limits in 2026
Effectiveness dates for student loan policies in the One Big Beautiful Bill Act
Immigration
The bill authorizes the Trump administration to move forward on its mass deportation and immigration reform goals.
On the day the bill was signed, the government added a permanent $100 fee for asylum applications and increased the fees for work permits paid by asylum seekers, parolees, and those with temporary protected status.
From the current fiscal year through 2029, Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) will get additional funding. A new Department of Homeland Security (DHS) fund reimburses states for border security action.
The OBBB raises immigration fees and boosts border enforcement starting in 2025
Effectiveness dates for immigration policies in the One Big Beautiful Bill Act
With the bill, Congress raised the debt ceiling by $5 trillion after reinstating the limit at $36.1 trillion in January.
All told, the new bill will shape the government’s budget — on the revenue and expense sides — for the rest of the decade.
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Page sources and methodology
All of the data on the page was sourced directly from government agencies. The analysis and final review was performed by USAFacts.
US Congress
H.R.1 - One Big Beautiful Bill Act
