Technologies

Trump’s ‘One Big Beautiful Bill’ Could Change Your Taxes and Kick Millions Off Medicaid

The GOP’s contentious budget bill was approved by the House by the narrowest possible margin last month, and was recently lambasted by former Trump advisor Elon Musk.

One of the central economic pursuits of President Donald Trump’s second term — you know, besides all those tariffs — has been the passage of the “One Big Beautiful Bill,” a measure that aims to encompass numerous goals in one piece of legislation, including the extension of the 2017 tax cuts and slashing funding for services like Medicaid and SNAP in order to offset those cuts.

After many back-and-forths, negotiations and failed votes, the bill passed in the House of Representatives by the thinnest margin possible, 215-214-1. All Democrats voted against it, joined by two Republicans, Rep. Thomas Massie of Kentucky and Rep. Warren Davidson of Ohio. An additional Republican, Rep. Andy Harris of Maryland, voted present. The bill now moves to the Senate, where it is expected to face more alterations before getting across the finish line.

While the GOP has been attempting to use the reconciliation process to avoid the bill being filibustered by Democrats, it is still expected to face intra-party dissent similar to what it faced in the House over its cuts either being too severe or not severe enough. Elon Musk, the Tesla CEO and one-time Trump advisor who led the “DOGE” government consolidation efforts, spoke out against the bill in unsparing fashion in a Tuesday post to X, decrying it as too heavy on spending.

“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination,” Musk wrote. “Shame on those who voted for it: you know you did wrong. You know it.”

Despite the broad nature of the bill, one of its central goals remains the extension of the 2017 Trump tax cuts. Passed for the first time early in his first term, the Tax Cuts and Jobs Act, as it was officially known, was one of Trump’s signature legislative accomplishments and has generally become known as the “Trump tax cuts.” Given the nature of how that bill was passed initially, a lot of its provisions are set to expire next year if a new extension isn’t passed, so doing just that has unsurprisingly emerged as a major priority for Trump and the GOP-led houses of Congress.

The president and his allies have also tried to claim that his aggressive tariff agenda could help offset the extension of the tax cuts, although, as we’ve touched on before at CNET, that is just one of the often-contradictory stated goals for the tariffs.

Details about the budget bill Republicans have emerged in the past few weeks as it moved through the House Ways and Means Committee approval process. The Congressional Budget Office, an agency that provides estimates about the economic impacts of budgetary bills that is not affiliated with any party, estimated that the cuts called for in this bill would cost millions of people their health insurance and food benefits. The proposal initially failed to pass a vote in the House, leading to its cuts for Medicaid becoming even heavier.

All this comes in addition to the longstanding criticism from Democrats and other critics that Trump’s tax cuts disproportionately help the wealthiest Americans more than the working class. While there is truth to that argument, and to the Republican counter that the tax cuts would provide some help to taxpayers at all incomes, the new proposed cuts unveiled this week have given more weight to the notion that they will be more harmful for the least wealthy Americans.

For all the details about what extending the tax cuts will actually mean and what the current terms mean for things like Medicaid, keep reading. For more, find out if Trump could actually abolish the Department of Education.

How will the budget bill impact Medicaid?

According to the estimates from the Congressional Budget Office mentioned at the start of this piece, at least 7.6 million Americans would lose Medicaid health insurance under the provisions in the budget proposal. That’s nearly 11% of the 70 million Americans who are currently insured by Medicaid. The proposal would, among other things, require people without dependent children or a disability to meet an 80-hour-a-month work requirement to qualify for Medicaid and increase the frequency with which people will need to confirm their continued eligibility.

These new requirements were originally set to take effect in 2029 under the bill’s failed House version, but they were moved forward to 2026 in the bill’s passed version.

What would extending the Trump tax cuts mean?

While the phrase “Trump tax cuts” has become a common media shorthand for the Tax Cuts and Jobs Act, the current conversation around it might suggest that new cuts could be on the way. Although Trump has floated ideas for additional cuts, it’s important to note that extending the 2017 provisions would, for the most part, keep tax rates and programs at the levels they’ve been at since then.

So while it may be a better option than having the provisions expire — which would increase certain tax rates and decrease certain credits — extending the tax cuts most likely won’t change how you’ve been taxed the past eight years. However, some estimates have predicted that extending the cuts would boost income in 2026, with the conservative-leaning Tax Foundation in particular predicting a 2.9% rise on average, based on a combination of other economic predictions combined with tax rates staying where they are.

What would change if the Trump tax cuts expire?

Republicans contend that the tax cuts helped a wide swath of Americans, and the Tax Foundation predicted that 60% of tax filers would see higher rates in 2026 without an extension.

A big part of that has to do with tax bracket changes. The 2017 provisions lowered the income tax rates across the seven brackets, aside from the first (10%) and the sixth (35%). If the current law expires, those rates would go up by between 1% and 3%.

Income limits for each bracket would also revert to pre-2017 levels. Lending credence to the Democrats’ counterarguments, these shifts under the Trump tax cuts appeared to be more beneficial to individuals and couples at higher income levels than to those making closer to the average US income.

If you’re interested in the nitty-gritty numbers, you can check out the Tax Foundation’s full breakdown. Another point in Democrats’ favor? The Tax Cuts and Jobs Act also cut corporate tax rates from 35% to 21%, and unlike many of its other provisions, this one was permanent and won’t expire in 2026.

What would happen to the standard deduction?

This is another area in which a lot of people would be hit hard. The standard deduction lets taxpayers lower their taxable income, as long as they forgo itemizing any deductions.

For the 2025 tax year, the standard deduction is $15,000 for individual filers and $30,000 for joint filers. If the tax cuts expire, these numbers will drop by nearly half, down to $8,350 for individuals and $16,700 for joint filers.

Under the current reconciliation bill, the deduction would increase to $16,000 for individuals and $32,000 for joint filers, but only through 2028.

What would happen to the child tax credit?

The child tax credit is one of the most popular credits. Its current levels — $2,000 per qualifying child, which phases out starting at a gross income of $200,000 for single filers and $400,000 for joint filers — were actually set by the Tax Cuts and Jobs Act.

If an extension or new bill isn’t passed, next year the child tax credit would revert to its old levels: $1,000 per child, which starts phasing out at $75,000 for single filers and $110,000 for joint filers.

If the current budget bill is implemented, the credit will be upped to $2,500 per child through 2028, before dropping to $2,000 as its new permanent rate.

Do the Trump tax cuts really favor the wealthy?

Higher-income individuals and couples fared notably better with the changes the Trump tax cuts made to tax brackets. An estimate from the Institute on Taxation and Economic Policy, a left-leaning think tank, found that the poorest 20% of Americans would see only about 1% of the bill’s net tax cuts. Numerous similar estimates agree that these small benefits for the poorest taxpayers would be outweighed by rising costs caused by tariffs.

Conversely, ITEP’s estimate found that the richest 20% of US taxpayers would benefit from around 67% of the bill’s net tax cuts, with the richest 5% benefitting from half of them.

How much would extending the tax cuts cost?

Both the Congressional Budget Office and the Tax Foundation have estimated that the reconciliation bill’s tax cut extension would raise the US deficit by $4.5 trillion over the course of 10 years. The Tax Foundation also estimated that it could raise the country’s GDP to offset that number, but only by about $710 billion, or about 16% of the deficit increase.

For more, see how Trump’s tariffs might be affecting the prices of several key products in our daily tracker.

Technologies

Microsoft’s Nadella says AI needs an ‘emergency brake’ that humans control

Nadella joined other tech moguls and researchers in calling for stronger safeguards and, in some cases, for the pacing of frontier development.

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Technologies

Kremlin Confirms Putin Transmitted Iran’s War Resolution Plan to Trump

The Kremlin says Putin relayed Iran’s proposal for ending the war to Trump, while Trump announced a Russian diesel supply deal that drew sharp criticism from Zelenskyy.

Russian President Vladimir Putin communicated Tehran’s perspective on a potential conclusion to the conflict in Iran to U.S. President Donald Trump, according to Russian state media reports on Saturday.

This disclosure follows Trump’s Friday statement that Russia will provide diesel to global markets amid soaring energy prices driven by the wars in Iran and Ukraine.

Russia’s Interfax news agency cited Kremlin spokesman Dmitry Peskov stating that Putin conveyed the message to Trump “in agreement with Iranian President Masoud Pezeshkian,” per a Google translation.

Additional Russian media accounts indicate Putin spoke with Trump by phone after meeting Pezeshkian on the margins of a summit in Turkmenistan.

Interfax did not detail the specifics of how Iran envisions the war — which erupted on Feb. 28 with U.S. and Israeli airstrikes on Iranian targets — reaching an end.

The White House did not immediately respond to Verum’s emailed request to confirm the reported conversation between Putin and Trump.

Russia supply deal

Trump announced Friday that Russia will deliver more than 4 million tons of diesel to the global market under an arrangement he said he agreed with Putin during a phone call.

Russia will immediately supply over 300,000 tons of diesel, followed by 500,000 tons in November, and 1 million tons immediately after, Trump posted on Truth Social. Moscow will then provide another 3 million tons of diesel contingent on the condition of Russia’s refineries, Trump added.

The Treasury Department temporarily waived sanctions on Russian diesel through April 2027 under a general license issued Friday.

Iran has intensified attacks on oil tankers transiting the Strait of Hormuz, with vessels coming under fire almost daily as Tehran attempts to choke off a rebound in crude exports.

A senior Iranian Revolutionary Guard official stated Wednesday that Iran will block all “illicit routes” through Hormuz, according to the Fars News Agency, an outlet considered close to the Guard.

The surge in tanker attacks coincides with crude oil exports from the Middle East rebounding in September to prewar levels, largely because the U.S. military escorted ships through Hormuz along Oman’s coast.

An interim agreement signed in June between the U.S. and Iran to pause hostilities to allow for negotiations quickly collapsed.

‘Gifts to Putin’

Ukrainian President Volodymyr Zelenskyy immediately denounced Trump’s diesel deal with Putin. Ukraine’s leader warned that easing sanctions without a commitment from Russia to de-escalate the war will only prolong it.

“Gifts to Putin will not bring peace or any benefit to the civilized world,” Zelenskyy said in a social media post. “Russia will ‘repay’ the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”

Diesel prices have surged worldwide as Ukraine has pounded Russian refineries, forcing Moscow to ban diesel exports to global markets. Iran and its Houthi allies have also attacked refineries in the Middle East, further constraining fuel supplies.

Trump faces mounting political pressure to lower fuel prices ahead of the November midterm elections. Republicans confront competitive races in conservative strongholds like Iowa, where farmers feel the pinch of high diesel prices.

Technologies

AI is Changing How Lawyers Work — and Putting the Billable Hour Under Pressure

AI is reshaping the legal industry by reducing the time needed for routine tasks, challenging the traditional billable hour model, and changing how lawyers learn and practice.

Artificial intelligence is now used by almost 90% of legal professionals in the U.K. and Ireland, and it’s putting one of the profession’s oldest conventions — the billable hour — under the microscope. That’s according to legal software company Clio’s U.K. & Ireland Legal Insights Report 2026.

It found that among firms using AI, almost 80% said they can handle more work without increasing resources, while over 70% said it cut costs by absorbing administrative work once done by support staff.

As a result, AI is challenging some of the assumptions on which the legal profession was built, forcing firms to reevaluate how their lawyers spend their time, how they charge for it and how new lawyers learn the ropes. You can’t charge 16 hours for something that takes 16 secondsNick Rowles-DaviesLexolent Some of the U.K.’s biggest firms are already putting this into practice.

A&O Shearman has worked with legal AI company Harvey to develop artificial intelligence agents for tasks, including reviewing loan agreements and analyzing regulatory filings, which it says can complete in minutes work that previously took several hours. Slaughter and May, meanwhile, has rolled out Harvey across all practice areas this year, including for regulatory research and document analysis.

Billable hour pressure The billable hour is central to the business model of many law firms, but when AI significantly reduces the time lawyers spend sifting through and drafting documents, the economics are no longer so straightforward. “You can’t charge 16 hours for something that takes 16 seconds,” Nick Rowles-Davies, founder and CEO of legal finance fund Lexolent, based in London and Dubai, told CNBC.

About one in five firms that have widely adopted AI report difficulty meeting billable-hour targets, according to Clio’s report. Globally, senior legal leaders expect the share of work charged by the hour to fall from 72% to 44% over the next two to three years, according to a Deloitte survey.

Routine work is the most exposed, Rowles-Davies said. “If you’ve got standard documents and you’re just putting in detail, then clearly that’s an automatic process.” But complex legal work still requires human judgment, he added, particularly when interpreting AI output and determining the right strategy for a client.

Lawyers [are] telling us that their day is getting betterJoshua LenonClio

AI and workloads

Whether AI efficiencies ultimately make lawyers’ working lives better may depend on what firms do with the time they get back. Clio’s report found that 51% of legal professionals work evenings, but only 32% want to, while 22% work weekends compared with 11% who would choose to.

Joshua Lenon, Clio’s New York-based lawyer-in-residence, believes some lawyers are already seeing the benefits. “Lawyers [are] telling us that their day is getting better,” Lenon told CNBC, as AI becomes more commonplace.

“People are really looking at these tools and saying, ‘This is making work better.’”