One Big Beautiful Bill

Assalamu Alaikum girlie 🌸

So… you’ve probably heard it all over the internet streets - Donald Trump signed what he called “One Big Beautiful Bill” into law on July 4th.

Now, this bill covers A LOT! And while I’m not here to debate politics, I’m going to dive into what it means for your wallet.

I’ve pulled out the parts that impact our personal finances the most and grouped them into 4 parts:

1. Your Income

2. Loans

3. Families

4. Government Assistance

Grab your coffee (or sand-tasting matcha) and let’s dive in.

Your Income: More Take-Home Pay (Sort Of)

Let’s start with a win for the paycheck.

• You can now deduct up to $25,000 in tips and $12,500 in overtime pay from taxable income (through 2028). Meaning you dont have to pay taxes on those amounts.

• For service industry workers, side hustlers, or anyone stacking OT to get ahead, that’s real money back in your pocket.

• Plus, the 2017 tax cuts have been made permanent: letting you pay less in taxes than you would’ve if it went back to the previous rates- yoopi!🤩

• Seniors got some love too - you can now deduct $6,000 of your social security income ($12,000 if you’re a couple). Uncle Sam doesn’t have a cut on that money!

But… remember, these tax perks don’t magically make you rich. If you’re keeping more of your paycheck, the question is:

Am I using it toward your financial goals? Or is this helping me dig a bigger hole?

Loans (Especially Student Loans)

Now for the part most are upset about. If you have or plan to take out student loans, DON’T sleep on this!

• Starting July 1st, 2026 there’ll be a limit on how much you can borrow for college: this number differs for undergrad vs grad vs professional degrees. Check fafsa.gov for the specific details.

• The Grad PLUS loan program is ending for new borrowers in 2026.

• The SAVE, REPAYE, PAYE, and ICR plans will be eliminated. If you are on any of these plans, you must switch to a new one by July 1st 2028! Many borrowers will need to start paying a higher minimum each month.

• And those dreamy forgiveness timelines? They’re getting stretched out further.

For anyone currently borrowing or repaying:

• Start paying down principal aggressively now before the new rules make it harder.

• Don’t plan your life around “forgiveness” - it’s looking more like a 20-year waitlist than a rescue plan. And I know you want financial freedom and peace sooner than that!

• If you’re planning grad school, consider scholarships, employer assistance, or delaying until you can cash flow more of it.

This part stings, I hear you. The sooner you face it, the less it can control you

Help for Families (and Babies!)

Parents, this is where it gets interesting.

• The Child Tax Credit is going up to $2,200 per kid starting 2026, and it’ll adjust with inflation.
  Even if you owe $0 in taxes, you can still get the credit - a relief for many families.

• Every baby born between 01/01/25 and 12/31/28 will get $1,000 deposited into a government-backed “Trump account”. As hard as it is, let’s ignore the name for a sec
  Left alone, assuming decent returns, that could grow to:
  

  • $6,289 by age 18

  • $12,859 by age 25

  • $21,432 by age 30

For many families, this could make a real difference - a head start for education, marriage, or business dreams.

The fun thing is:

This is a nice thing to have, AND you can do the same thing yourself! Open a custodial account for your child, choose halal investments, and contribute at once or consistently (some of that eid money? Has a place to go😉).

You’ll have more control, no government strings, and can add more than $1,000 to truly change their financial future.

Cuts to Assistance Programs

Here’s the not-so-pretty part.

• Medicaid is seeing a big funding cut. SNAP (food assistance) is tightening work rules.

• If your household relies on these, you’ll need to plan now - explore new ways to boost your income and build a cash buffer.

• And those EV and green tax credits? They’re sunsetting by September. So if you want a credit on your new Tessie, buy that baby before labor day!

These changes aren’t easy, so planning now will keep you from scrambling later.

And That Debt Ceiling…

Oh, and because the U.S. apparently runs on “buy now, panic later,” the debt ceiling just got raised. Again!

What does that mean?

• The government is borrowing more money.

• Likely higher inflation in the future.

• And possibly more taxes or benefit cuts down the road.

This is a reminder that the government programs isn’t a reliable financial security plan. Even when it’s hard, take baby steps to build your own foundation - pay off debt, build savings, and investments. Allah will aid you sis- you can do it!

Sources:

• Money Guy- https://youtu.be/RGlVoLjNNRQ?si=GEws9uO0-koSVqHL

• The Bill-  https://www.congress.gov/bill/119th-congress/house-bill/1/text

So, What Do We Do?

This bill is a mixed bag - some perks, some headaches.

Let’s take a few deep breaths and get an action plan in gear:

1. Direct any extra take-home pay toward your goals- savings, investments, fun, or debt payoff.

2. Parents: plan for the new tax credit and consider your own savings strategy for your kids.

3. Student loans: get the numbers, create a solid debt repayment plan, and kick that debt to the curb like it’s your worst enemy.

4. If you rely on assistance programs: start tightening your budget and increasing your income.

The changes are coming either way.

The only question is: will you let them throw you off, or will you make them work for you?

And if all this feels overwhelming? You’re not alone. Book a coaching session with me and let’s make a plan so you’re not blindsided.

You’ve got this,

Fatimah💎