Have children? How the 'Big, Beautiful Bill' could affect you
(NEXSTAR) – In the nearly 900 pages of President Donald Trump's tax and spending bill are several provisions that parents and guardians may want to pay close attention to.
Child tax credit
Under Trump's "Big, Beautiful Bill" the child tax credit is raised from $2,000 to $2,200.
Parents and guardians can claim the tax credit for each qualifying child who will be under the age of 17 at the end of the year. Both the taxpayer and the child must have a Social Security number.
The increased tax credit goes into effect in 2025, and will be adjusted for inflation starting 2026.
Millions of the nation's lowest earners don't make enough to claim the full credit, however, which is partially refundable.
$1,000 for newborns
The bill creates a new children's savings program, called Trump Accounts, with a potential $1,000 deposit from the Treasury.
The accounts are for U.S. citizens who are born between 2025 and 2028.
After the initial $1,000 deposit funded by the government, relatives, employers and nonprofits can also make contributions under the annual $5,000 limit.
The accounts are designed to give Americans the chance to extend their investing timeline, setting them up for years of "compounded growth" and placing them "on a course for prosperity from the very beginning," according to the White House.
Critics have questioned why parents might add additional dollars to the tax-deferred accounts when they can put money away for college in a 529 plan, which allows the tax-free withdrawal of funds.
Adoption incentive, paid family leave
U.S. House Committee on Ways & Means Chairman Jason Smith applauded the bill's passage, saying in a statement that it supports working families and small businesses in part by making permanent the paid leave tax credit.
The law, which extends the 2017 measure that was set to expire at the end of 2025, provides tax credits for businesses so that they can grant paid leave to their workers.
Trump's budget bill also boosts the tax credit for taxpayers who adopt a child to $5,000, which will be adjusted over time for inflation.
Medicaid cuts for families
To help partly offset the lost tax revenue and new spending, Republicans aim to cut back on Medicaid and food assistance for people below the poverty line.
Republicans argue they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse.
The package includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older people up to age 65. Parents of children 14 and older would have to meet the program’s work requirements.
There's also a proposed new $35 co-payment that can be charged to patients using Medicaid services.
More than 71 million people rely on Medicaid, which expanded under Obama's Affordable Care Act, and 40 million use the Supplemental Nutrition Assistance Program. Most already work, according to analysts.
The Congressional Budget Office estimates that 11.8 million more Americans would become uninsured by 2034 if the bill became law and 3 million more would not qualify for food stamps, also known as SNAP benefits.
The Associated Press contributed to this report.