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As the political landscape continues to shift, legislation in Washington has the power to reshape economic, tax, and entitlement policy for years to come. On July 1, 2025, that became a reality: the One Big Beautiful Bill Act (OBBBA) was officially signed into law, marking one of the most sweeping federal reforms in decades. Whether you're a financial advisor helping clients navigate evolving tax rules or a firm leader anticipating economic ripple effects, understanding the law’s implications is essential. Here’s what’s in the law—and how it may impact your clients and business. Washington Update – July 4, 2025 After passing the House in May by a razor-thin margin (215–214–1), the bill cleared the Senate in early July with a 51–50 vote, with Vice President J.D. Vance casting the tie-breaking vote. Minor Senate amendments were quickly approved by the House, and the bill was signed into law shortly thereafter. The OBBBA is now the law, and its provisions will take effect over the coming months and years. Financial professionals and industry analysts alike are closely tracking its implications across taxes, entitlement programs, energy, and defense spending. Key Provisions Trump-era tax cuts become permanent: OBBBA locks in many provisions of the 2017 Tax Cuts and Jobs Act, including the exemption of tips and overtime from federal taxes. It raises the SALT deduction cap and adds a $1,000 “MAGA savings account” tax deduction per child. Significant spending on defense and border security: Roughly $150 billion is earmarked for defense (including drone and missile capabilities), and $70 billion is dedicated to immigration enforcement and deportation infrastructure. Rollbacks on green energy: More than $600 billion in clean energy tax credits from the Inflation Reduction Act will be phased out, a move projected to affect more than 120,000 clean energy jobs nationwide. Stricter welfare program requirements: The law imposes work requirements for Medicaid and SNAP recipients, potentially disqualifying 10–11 million Americans from health coverage. Debt ceiling increase: To fund these initiatives, the law increases the federal borrowing limit by $4–5 trillion. Other notable provisions: New taxes on large university endowments and outbound remittances, a 10-year federal ban on state-level AI regulation, elimination of the $200 suppressor tax, restrictions on the use of nationwide court injunctions. Fiscal & Social Impact National debt: The CBO projects the law could add $3.3 trillion to the national debt over the next 10 years. Healthcare coverage: Up to 11 million people may lose Medicaid coverage due to work requirements. Clean energy jobs: Over 120,000 jobs could be lost, especially in states like Texas and California. Energy costs: A decrease in clean energy investment could drive up long-term household utility bills. Supporters' view: Advocates say the reforms will stimulate economic growth, boost employment, and reduce the federal deficit by over $2 trillion through increased GDP and private-sector activity. Who Gains and Who Loses? Beneficiaries: High-income earners, oil and gas industries, defense and immigration enforcement contractors. Potential Losers: Medicaid and SNAP recipients, clean energy sector and workers, uninsured and low-income Americans. Final Thoughts One Big Beautiful Bill is more than just tax or spending reform—it’s a defining statement of the country's economic and social priorities heading into the 2026 midterms. For financial advisors, the takeaway is clear: This new law will shape client conversations around tax strategy, healthcare planning, charitable giving, and energy-related investments. Now more than ever, staying agile and informed is critical to serving clients with clarity and confidence. At Journey Strategic Wealth, we’re committed to helping advisors anticipate what’s next—and adapt. We’ll continue monitoring the law’s rollout and provide timely guidance to help you and your clients plan effectively in this new environment. This material is distributed for informational purposes only. Investment Advisory services offered through Journey Strategic Wealth, a registered investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). The views expressed are for informational purposes only and do not take into account any individual’s personal, financial, or tax considerations. Opinions expressed are subject to change without notice and are not intended as investment advice. Past performance is no guarantee of future results. Please see Journey Strategic Wealth’s Form ADV Part 2A and Form CRS for additional information.
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