What the Senate Republican tax and spending bill means for your money

Senate staffers rest on the U

Capitol steps at sunrise as Republican lawmakers struggle to pass U

If enacted, the bill could also slash spending on social safety net grams such as Medicaid and SNAP, axe tax credits tied to clean energy and overhaul student loans

But a House floor vote could come as this week to meet Trump's July 4 deadline

Here are some of the key visions to watch — and how those measures could impact household finances

But the alternative minimum tax reduced the benefit for some wealthier Americans

Both figures would increase by 1% yearly through 2029 and the $40,000 limit would revert to $10,000 in 2030. "If you raise the cap, the people who benefit the most are going to be upper middle-income," since lower earners typically don't itemize tax deductions, Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, previously told CNBC. — Kate DoreChild tax creditTrump's 2017 tax cuts temporarily boosted the maximum child tax credit to $2,000 from $1,000, an increase that will sunset after 2025 without an extension from Congress

However, the posed bills wouldn't help 17 million children from low-income families who don't earn enough to claim the full credit, according to Elaine Maag, senior fellow in the Urban-Brookings Tax Policy Center. — Kate DoreSenior 'bonus' deductionBoth the House and Senate called for a temporary enhanced deduction for Americans ages 65 and over, dubbed a "bonus," in their respective versions of the "big beautiful" bill

Notably, the Senate version would phase out at a faster rate for taxpayers who are above those thresholds

Ultimately, middle-income taxpayers may benefit most from the enhanced deduction, Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, recently told CNBC

The Senate version of the bill would cut more than $1 trillion from Medicaid, compared to more than $800 billion in cuts in the House version, according to Congressional Budget Office estimates

House Minority Leader Hakeem Jeffries, D-N. , at the House Democrats' news conference on Medicaid and SNAP cuts posed by the Republicans' reconciliation cess

Bill Clark | Cq-roll Call, Inc. | Getty ImagesNew federal work requirements would require beneficiaries ages 19 to 64 who apply for coverage or who are enrolled through an Affordable Care Act expansion group to work at least 80 hours per month

Adults may be exempt if they have dependent children or other qualifying circumstances such as a medical condition

Notably, the Senate version of the bill posed stricter limits on exemptions for parents, limiting it to those with dependent children ages 14 and under

The posed Medicaid changes would also make it so states would have to conduct eligibility redeterminations for coverage every six months, rather than every 12 months based on current policy. 8 million people could become uninsured by 2034 due to Medicaid cuts, CBO has jected based on the House bill. — Lorie KonishReduced food stamp benefitsBoth Senate and House versions of the "big beautiful" bill pose cuts to food assistance through the Supplemental Nutrition Assistance gram, or SNAP, formerly known as food stamps

The cuts in the Senate bill may ultimately affect more than 40 million people, according to the Center on Budget and Policy Priorities

That includes 16 million children, 8 million seniors and 4 million non-elderly adults with disabilities, among others, according to CBPP, a nonpartisan re and policy institute

Many states would be required to pay a percentage for food benefits to make up for the federal funding cuts

If they cannot make up for the funding losses, that could result in cuts to SNAP benefits or states opting out of the gram altogether, according to CBPP

The Senate posal also seeks to expand existing work requirements to include adults ages 55 to 64 and parents with children 14 and over

Based on current rules, most individuals cannot receive benefits for more than three months out of every three years unless they work at least 20 hours per week or qualify for an exemption

For 600,000 low-income households, food benefits could be cut by an average of $100 per month, according to CBPP. — Lorie KonishNew 'Trump accounts' for child savingsThe Senate's version of Trump's budget bill also included a new savings account for children with a one-time deposit of $1,000 from the federal government for those born in 2024 through 2028

Starting in 2026, so-called "Trump accounts," a type of tax-advantaged saving account, would be available to all children under the age of eight years old who are U

Citizens, largely in line with the House plan advanced in May

Pekic | E+ | Getty ImagesTo be eligible to receive the initial seed money, both parents must have Social Security numbers

Earnings grow tax-deferred, and qualified withdrawals are taxed as long-term capital gains

Republican lawmakers have said these accounts will introduce more Americans to wealth-building opportunities and the benefits of compound growth

For starters, Republicans would limit how much money people can borrow from the federal government to pay for their education

These allow grad students to borrow up to their entire cost of attendance minus any federal aid;Going forward, there would be just two repayment plan choices for new borrowers: Student loan borrowers could either enroll in a standard repayment plan with fixed payments, or an income-based repayment plan known as the "Repayment Assistance Plan," or RAP

The bill would also nix the unemployment deferment and economic hardship deferment, both of which student loan borrowers use to pause their payments during periods of financial difficulty. — Jessica Dickler and Annie NovaCar loan interest deductionThe Senate bill creates a tax deduction for households on car loan interest, similar to a vision in the House bill

There are some eligibility restrictions

Cars must also be U. -assembled

In practice, the tax benefit is ly to be relatively small, experts said. "The math basically says you're talking [financial] benefit of $500 or less in year one," based on the average new loan, Jonathan Smoke, chief economist at Cox Automotive, an auto market re firm, recently told CNBC. — Greg Iacurci Tax break on tip incomeThe Senate passed the No Tax on Tips Act in late May, a standalone legislation that would create a federal income tax deduction of up to $25,000 per year, with some limitations

The tax break would apply to workers who typically receive cash tips reported to their employer for payroll tax withholdings, according to the summary of the bill

The House-apved bill would create a deduction for "qualified overtime compensation" of $160,000 or less from 2025 to 2028

The deduction is "above-the-line," meaning the tax break is available regardless of whether you itemize deductions

These tax credits would disappear after Sept

Additionally, it would scrap tax breaks for consumers who make their s more energy-efficient, perhaps by installing rooftop solar, electric heat pumps, or efficient windows and doors

These credits would end after Dec

Investment to fight climate change