How Will Trump’s Economic Reform Impact Your Wallet?

The Republican-controlled Congress has approved Trump’s economic reform.

It includes permanent tax cuts and reductions to key programs like Medicaid.

If it advances in the Senate, it could significantly change your finances, taxes, and social benefits.

The new legislative package passed by the House aims to extend and make permanent the 2017 tax cuts.

To help fund these tax reductions, the plan proposes cuts to essential programs such as Medicaid, SNAP (food stamps), and tax credits for clean energy.

For millions of Hispanic families in the U.S., these changes under Trump’s economic plan could directly impact monthly budgets, affecting healthcare, food security, savings, and education plans.

Background on Trump’s Economic Plan

The Republican Congress has backed this economic reform from Trump, which expands tax exemptions, disproportionately benefiting higher-income earners.

The Congressional Budget Office (CBO) projects about a $1 trillion cut to Medicaid, which could leave 7.8 million people without health insurance by 2034.

The plan also slashes SNAP, affecting over 40 million beneficiaries, including 16 million children. Additionally, it eliminates tax credits for electric vehicles—$7,500 for new and $4,000 for used cars—which would expire after September 30, 2025.

Direct Impact on Your Wallet: Questions and Answers About Trump’s Economic Reform

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What happens to my taxes if I have children?
The child tax credit will increase from $2,000 to $2,200 starting in 2025, with adjustments for inflation beginning in 2026. For families with qualifying children under age 17, this offers some relief, though it’s limited compared to other cuts.

I’m over 65—are there any benefits for me?
An additional tax deduction of up to $6,000 will be available from 2025 through 2028 for incomes up to $75,000 (or $150,000 for joint filers). This is temporary within Trump’s economic plan and aims to partially offset impacts on seniors.

What if I use Medicaid?
The projected $1 trillion cut means millions could lose coverage. Check your eligibility and state alternatives.

What happens to SNAP?
The cuts would reduce the amount of benefits and tighten eligibility requirements, impacting families with children, seniors, and individuals with disabilities.

Will it affect college education?
Yes. Trump’s economic reform limits how much you can borrow in federal student loans and reduces repayment options to just two plans starting mid-2026.

What about tax credits for electric vehicles?
These credits will disappear after September 2025, making new and used electric vehicles more expensive to purchase or lease.

Experts’ Opinions on the Bill

“This bill prioritizes tax cuts for the wealthiest while cutting safety nets for the most vulnerable,” said the Center on Budget and Policy Priorities (CBPP).

The Congressional Budget Office also warned that cuts to Medicaid could leave millions uninsured by 2034.

In Summary:

Trump’s economic reform promises lower taxes, but at the cost of cuts to Medicaid, SNAP, and clean energy support.

For many Hispanic families in the U.S., this will mean significant adjustments in healthcare, food security, and personal finances.