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President Donald Trump’s One, Big, Beautiful BillAct (OBBBA) was signed into law July 4, 2025 — and it has far-reaching consequences for most Americans (1).
The 940-page legislative document touches on everything from immigration to healthcare, and the modifications to the tax code are worth noting if you’re over 65.
Here’s why these new rules are a big deal for older Americans across the income spectrum, and why the next four years are a crucial window for you to adjust your tax plans accordingly.
Older Americans who have a fixed income and are struggling with the cost-of-living crisis may get some financial relief from this bill’s new tax credits and deductions.
Those aged 65 and above can now claim a bonus tax deduction of $6,000 for single filers or $12,000 for joint filers. This is on top of the standard deduction, and the additional standard deduction — which Americans over 65 years old can claim (2).
Individual taxpayers who earn up to $75,000 or couples who earn a combined income up to $150,000 can claim the full bonus deduction.
The deduction is gradually phased out at higher income levels and is fully phased out for anyone earning over $175,000 individually or $250,000 jointly.
Besides this bonus, many seniors could also benefit from other deductions included in the bill.
Those with a car loan, for instance, can deduct up to $10,000 in interest payments if they meet certain eligibility criteria. The amount of state and local tax (SALT) payments that taxpayers can deduct from their federal taxes has also been raised, from $10,000 to $40,000.
However, several of these deductions have expiration dates. The SALT deduction is set to revert to $10,000 in 2030, while the auto loan interest deduction only applies to purchases from 2025 to 2028.
And the bonus deduction for Americans ages 65 and over? That measure expires in the 2028 tax year.
While many of these tax relief measures might seem attractive, they’re limited and temporary. For older Americans who qualify, there might be a short window to tap into these fleeting benefits.
On the flip side, the OBBBA made big cuts to the social safety net, retirement benefits and medical assistance. The OBBBA included a $1.1 trillion cut on federal spending for the Affordable Care Act and Medicaid across the next decade, according to the Congressional Budget Office estimates (3).
The Center on Budget and Policy Priorities reported that the cuts, revised eligibility requirements, additional charges and new limitations will force an estimated 11.8 million people to lose health coverage by 2034 (4).
And at almost 1,000 pages, figuring out exactly what the OBBBA’s effect is on your wallet could be as hard to pin down as the bill is to page through.
That’s where a good financial advisor can help, by stepping in to safeguard your assets and show you how to make the most of the bill’s positives — while shielding yourself from the negatives.
Finding a reliable financial advisor is now easier than ever with Advisor.com. Their network consists of fiduciaries, so they’re legally obligated to act in your best interest.
To get started, enter some basic information about yourself and your financial goals, and Advisor.com will scour through its database and match you with reputable SEC/FINRA-registered advisors near you.
A qualified financial advisor can stick with you for the long haul, so it’s worth taking your time to choose one. Advisor.com lets you set up a free, no-obligation consultation with your match to see whether they’re the right fit.
There are other ways the OBBBA’s funding cuts could weaken seniors’ social safety nets.
Federal funding for the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, is set to be slashed and offloaded to state and local governments in October 2027.
The OBBBA modified who qualifies for the SNAP program, and the deadline to implement the changes was Nov. 1, 2025 (5). Now, all able-bodied adults without dependents must be working at least 80 hours a month, pursuing an education, or be in a training program to keep qualifying for SNAP. Prior to the OBBBA, this criterion only applied to adults up to 54 years old, but now, it’s anyone under 65, parents of children above 14 and veterans. That means older adults are directly affected by the new terms.
And the government’s 43-day shutdown only added fuel to the fire, causing delays for SNAP November payments — impacting millions, as nearly one in eight Americans rely on the benefits (6).
WTVC News Channel 9, an ABC affiliate, reported on December 9 the Trump administration had threatened to withhold federal funds to 21 states run by Democrats — unless they revealed data on all SNAP recipients (7). In response, these states claim Trump’s request raises privacy concerns for the individuals, and that they fear he will use the information to crack down on undocumented immigrants — who are already ineligible for SNAP benefits (8).
These controversial measures could be why 53% of American adults strongly or somewhat oppose Trump’s budget, according to a YouGov/Economist survey (9).
Older Americans cannot afford to ignore these changes. Every dollar saved over the next few years could offset the long-term impacts of reduced federal support for medical and food benefits.
Making your money work harder is now more important than ever. Having an emergency fund on hand could be essential for managing unexpected medical costs.
To get started, a high-yield account, such as a Wealthfront Cash Account, can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account can provide a base variable APY of 3.25%, but new clients can get a 0.65% boost over their first three months for a total APY of 3.90% provided by program banks on your uninvested cash. That’s eight times the national deposit savings rate, according to the FDIC’s December report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Your car insurance is just one of many costs that you might be able to cut to help maximize your savings.
According to a survey conducted by LendingTree, over 90% of Americans who shopped around and compared auto insurance rates from multiple lenders managed to save by switching carriers.
You can compare auto insurance rates from reputable lenders like Progressive, Allstate and GEICO through OfficialCarInsurance.com.
Here’s how it works: Just answer a few questions like your age, zip code, and the vehicle you’d like to insure, OfficialCarInsurance.com will compile a list of insurers offering the most affordable rates near you.
In the same amount of time it takes to watch a cat video on YouTube, you can find rates starting at just $29/month.
Another pricey monthly cost? Home insurance.
For those looking to switch their home insurance provider, OfficialHomeInsurance.com lets you compare rates from over 200 insurers near you to find great deals available in your area. You can save an average of $482 per year when you compare rates and select the lowest possible option for you.
Best of all, this process is entirely free and won’t impact your credit score. You also typically don’t have to wait for your current policy to expire before switching carriers. Just make sure to watch out for any hidden fees involved in doing so.
Older adults now have a window of roughly four years to take advantage of the OBBBA’s temporary tax relief, credits and deductions to enhance their financial security independently.
Even if you don’t foresee the OBBBA impacting your financial situation, it’s still important to build your retirement fund to protect your future well-being.
Having a solid plan in place can help ensure you’re not relying solely on government programs to carry you through retirement, whether Medicaid or Social Security benefits.
One way to help secure your retirement is to max out contributions to tax-advantaged accounts like 401(k)s and IRAs.
Given the stock market’s uncertainty, you may want to diversify your retirement accounts with inflation-resistant assets like gold.
Here’s how it works: simply contact Priority Gold’s precious metals specialist to discuss your goals, and they will help you determine how to integrate gold into your portfolio. From there, you can make a purchase and secure the delivery of your precious metals. If you opt for Priority Gold’s premium package, you can even get free insured shipping and storage for up to five years.
