Markus Andrews

As Senate Republicans release key details of President Donald Trump’s spending package, lawmakers are still debating the federal deduction for state and local taxes, known as SALT.
The Senate’s proposed text released on Monday includes a $10,000 SALT deduction cap, which is expected to change amid negotiations.
That limit is down from the $40,000 cap approved by House Republicans in May.

U.S. Senate Majority Leader John Thune (R-SD) speaks at a press conference following the U.S. Senate Republicans’ weekly policy luncheon on Capitol Hill in Washington, D.C., U.S., June 10, 2025.
Kent Nishimura | Reuters

As Senate Republicans release key details of President Donald Trump’s spending package, some provisions, including the federal deduction for state and local taxes, known as SALT, remain in limbo.
Enacted via the Tax Cuts and Jobs Act, or TCJA, of 2017, there’s currently a $10,000 limit on the SALT deduction through 2025. Before 2018, the tax break — including state and local income and property taxes — was unlimited for filers who itemized deductions. But the so-called alternative minimum tax reduced the benefit for some higher earners.

The Senate Finance Committee’s proposed text released on Monday includes a $10,000 SALT deduction cap, which is expected to change during Senate-House negotiations on the spending package. That limit is down from the $40,000 cap approved by House Republicans in May.
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The SALT deduction has been ‘contentious’

“SALT has been contentious for eight years,” said Andrew Lautz, associate director for the Bipartisan Policy Center’s economic policy program.
Since 2017, the SALT deduction cap has been a key issue for certain lawmakers in high-tax states like New York, New Jersey and California. These House members have leverage during negotiations amid a slim House Republican majority.
Under current law, filers who itemize tax breaks can’t claim more than $10,000 for the SALT deduction, including married couples filing jointly, which is considered a “marriage penalty.”

However, raising the SALT deduction cap has been controversial. If enacted, benefits would primarily flow to higher-income households, according to a May analysis from the Committee for a Responsible Federal Budget.
Currently, the vast majority of filers — roughly 90%, according to the latest IRS data — use the standard deduction and don’t benefit from itemized tax breaks.

Plus, the 2017 SALT cap was enacted to help pay for other TCJA tax breaks, and some lawmakers support the lower limit for funding purposes.
In the Senate, “there isn’t a high level of interest in doing anything on SALT,” Senate Majority Leader John Thune said June 15 on “Fox News Sunday.”
“I think at the end of the day, we’ll find a landing spot, hopefully that will get the votes that we need in the House, a compromise position on the SALT issue,” he said. 
But some House Republicans have already pushed back on the proposed $10,000 SALT deduction cap included in the Senate draft. 
Rep. Mike Lawler, R-N.Y., on Monday described the Senate proposed $10,000 SALT deduction limit as “DEAD ON ARRIVAL” in an X post.
Meanwhile, Rep. Nicole Malliotakis, R-N.Y., on Monday also posted about the $10,000 cap on X. She said the lower limit was “not only insulting but a slap in the face to the Republican districts that delivered our majority and trifecta.” More

Despite escalating political pressure, the Federal Reserve is widely expected to hold its benchmark short-term borrowing rate steady at its meeting this week.
All sorts of consumer borrowing costs could be impacted by the Fed’s upcoming decision.

U.S. President Donald Trump looks on as Fed Chair Jerome Powell speaks at the White House in Washington on Nov. 2, 2017.
Carlos Barria | Reuters

Political pressure is mounting against the Federal Reserve Chair Jerome Powell, and yet the Fed is expected to hold interest rates steady at the end of its two-day meeting this week.
Despite a wave of recent attacks on Powell from President Donald Trump, futures market pricing is implying virtually no chance of an interest rate cut, according to the CME Group’s FedWatch gauge.

The president has argued that maintaining a federal funds rate that is too high makes it harder for businesses and consumers to borrow, adding more strain to the U.S. economy. The fed funds rate sets what banks charge each other for overnight lending, but also affects many of the borrowing and savings rates most Americans see every day.
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With a rate cut likely postponed until at least September, consumers struggling under the weight of high prices and high borrowing costs aren’t getting much relief, experts say. 
“The combination of high interest rates, stubborn inflation and economic uncertainty is a pretty challenging one,” said Matt Schulz, chief credit analyst at LendingTree. “Most Americans don’t have a ton of wiggle room and today they have even less.”
From credit cards and mortgage rates to auto loans and savings accounts, here’s a look at how the Fed plays a role in your finances.

Credit cards

Credit card debt continues to be a pain point for consumers struggling to keep up with high prices. Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark.
But even with the central bank on the sidelines, credit card rates have edged higher. The average annual percentage rate is currently just over 20%, according to Bankrate, not far from last year’s all-time high. 
“This is a sign of banks trying to protect themselves from the risk that is out there in these uncertain times,” Schulz said. However, in this case, there is something consumers can do about higher APRs.

“The truth is that people have way more power over the rates they pay than they think they do, especially if they have good credit,” Schulz said.
Rather than wait for a rate cut that may be months away, borrowers could switch now to a zero-interest balance transfer credit card or consolidate and pay off high-interest credit cards with a lower-rate personal loan, he said.

Mortgages

Since 15- and 30-year mortgages are largely tied to Treasury yields and the economy, those rates haven’t moved much — and that hasn’t helped would-be buyers.
The average rate for a 30-year, fixed-rate mortgage has stayed within the same narrow range for months and is currently near 6.9%, according to Bankrate. Tack on the nationwide problem of limited inventory and housing affordability remains a key issue, regardless of the Fed’s next move.
“I don’t see any major changes coming in the immediate future, meaning that those shopping for a home this summer should expect rates to remain relatively high,” Schulz said.

Auto loans

Auto loan rates are fixed, and not directly tied to the Fed. But payments are getting bigger because car prices are rising, in part due to impacts from Trump’s trade policy.
Currently, the average rate on a five-year new car loan is 7.24%, according to Bankrate.

The growth in median car payments is outpacing both new and used car prices, according to separate data from Bank of America. Now, of those households with a monthly car payment, 20% pay more than $1,000 a month.
“Combine that with the potential for tariffs to drive auto prices even higher, and it adds up to a really challenging time to buy a car,” Schulz said. “However, shopping for the best rate and getting approved for financing before you ever set foot in the dealership can bring significant savings,” he added.

Student loans

Federal student loan rates are set once a year, based in part on the last 10-year Treasury note auction in May and fixed for the life of the loan, so most borrowers are somewhat shielded from Fed moves and recent economic turmoil.
Current interest rates on undergraduate federal student loans made through June 30 are at 6.53%. Starting July 1, the interest rates will be 6.39%.
Although borrowers with existing federal student debt balances won’t see their rates change, many are now facing other headwinds and fewer federal loan forgiveness options.

Savings

On the upside, top-yielding online savings accounts still offer above-average returns and currently pay more than 4%, according to Bankrate.
While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate — so holding that rate unchanged has kept savings rates elevated, for now.
“The thing that is lost in this, is that savers, including millions of retirees, are actually earning good income on their savings, provided they have their money parked in a competitive place,” said Greg McBride, Bankrate’s chief financial analyst.

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A sign is posted on the exterior of a Verizon store in Daly City, California, on Sept. 30, 2024.
Justin Sullivan | Getty Images News | Getty Images

Trade negotiations and heightened geopolitical conflict are weighing on market sentiment, but investors seeking stable income can solidify their portfolios through the addition of dividend stocks.
Tracking the recommendations of top Wall Street analysts could inform investors as they hunt for attractive dividend stocks, given that the investment thesis of these experts is backed by an in-depth analysis of a company’s fundamentals.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.

Verizon Communications

Telecom giant Verizon Communications (VZ) is this week’s first dividend pick. The company recently declared a quarterly dividend of $0.6775 per share, payable on Aug. 1. VZ stock offers a dividend yield of 6.3%.
Following a meeting with Verizon management, Citi analyst Michael Rollins noted that the company is upbeat about bolstering its leadership in broadband and converged services over the next few years. The company aims to double its converged wireless subscriptions (customers having both wireless and broadband subscriptions) from the current level of 16% to 17% of its customer base over the next three years.
Given the ongoing promotional backdrop in the wireless space, Rollins noted that competitive data points are still mixed. Nonetheless, Verizon is highly focused on customer retention and improving churn to rebound to its BAU (business as usual) levels in the second half of this year, partly supported by its new upgrade program.
Rollins noted that Verizon is optimistic about improvement in its performance in the second half of the year and continues to expect to add more postpaid phone subscriptions in 2025 compared to the previous year. The analyst sees the possibility of Q3 results, and not the Q2 performance, acting as a catalyst for Verizon stock, if the loss of postpaid phone customers starts to recede. Rollins continues to expect Verizon to lose 75,000 postpaid phone customers in the second quarter.

Overall, Rollins is bullish on VZ’s long-term growth potential, noting the “under-appreciated value for its financial prospects.”  The analyst reaffirmed a buy rating on Verizon stock with a price target of $48. Interestingly, TipRanks’ AI analyst has a buy recommendation on VZ stock, with an expectation of a 14.3% upside.
Rollins ranks No. 249 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, delivering an average return of 12.7%. See Verizon Insider Trading Activity on TipRanks.

Restaurant Brands International

Let’s move to the next dividend stock: Restaurant Brands International (QSR). This is a quick-service restaurant chain that owns iconic brands like Tim Hortons and Burger King. QSR offers a quarterly dividend of 62 cents per share. At an annualized dividend of $2.48 per share, QSR’s dividend yield stands at about 3.7%.
In May, Restaurant Brands said that it still expects to achieve its long-term algorithm, which projects 8% organic adjusted operating income growth on average between 2024 and 2028.
Evercore analyst David Palmer said that the company can deliver on-algorithm 8% profit growth in both 2025 and 2026, despite his estimates indicating below-algorithm systemwide sales growth of 5% and 6% in 2025 and 2026, respectively. He explained that despite lower sales, the company could achieve its profitability target in 2025 due to its cost management and lower stock-based compensation.
Palmer added that with QSR stock trading at significant discount to Yum Brands and McDonald’s, he sees the company’s earnings delivery as “step one to upside.”  He also highlighted other catalysts for QSR stock, including ongoing above-consensus International same-store sales growth, positive same-store sales growth for Burger King U.S. and Tim Hortons Canada, and a resale of the China business, which is expected to drive improved income in 2026.
Overall, Palmer is bullish on QSR stock and reiterated a buy rating with a price target of $86, which reflects a P/E (price-to-earnings) multiple of 23x and 22x based on 2025 and 2026 earnings estimates, respectively. The analyst contends that QSR commands a valuation multiple closer to rivals that are currently trading at 24x or higher.
Palmer ranks No. 632 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 63% of the time, delivering an average return of 7.1%. See Restaurant Brands International Technical Analysis on TipRanks.

EOG Resources

Finally let’s look at EOG Resources (EOG), a crude oil and natural gas exploration and production company with proved reserves in the U.S. and Trinidad. The company recently announced a deal to acquire Encino Acquisition Partners for $5.6 billion.
The company highlighted that this deal’s accretion to its free cash flow supports its commitment to shareholder returns. Notably, EOG announced a 5% increase in its dividend to $1.02 per share, payable on Oct. 31. EOG stock offers a dividend yield of 3.1%.
Reacting to the Encino acquisition, RBC Capital analyst Scott Hanold said, “Encino’s assets makes sense from a strategic and value adding perspective, in our view.” The analyst reiterated a buy rating on EOG stock with a price target of $145. TipRanks’ AI analyst has a buy rating on EOG Resources with a price target of $132.
Hanold highlighted that the deal increases EOG’s Utica position to a combined acreage of 1.1 million acres, producing 275 Mboe/d (million barrels of oil equivalent per day). The analyst expects the combined acreage in Utica to surpass 300 Mboe/d by early 2026, which is second only to EOG’s Permian position. Hanold expects scaled development to begin in 2026.
The analyst added that following the acquisition, EOG’s net debt to book capital stands at 0.3x, with the company still boasting a peer-leading leverage ratio and balance sheet. Hanold pointed out management’s commentary about shareholder returns remaining similar to those of recent quarters at 100% of free cash flow, with buybacks continuing to be a priority. He also noted the 5% rise in EOG’s fixed dividend.
Hanold ranks No. 15 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, delivering an average return of 29.6%. See EOG Resources Stock Buybacks on TipRanks.

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The Senate GOP reconciliation bill’s higher education provisions “would cause widespread harm to American families,” said Sameer Gadkaree, the president of The Institute for College Access & Success, by “making student debt much harder to repay” and “unleashing an avalanche of student loan defaults.”
Gadkaree and other consumer advocates have expressed concern about how the new terms could imperil many borrowers’ ability to meet their monthly bills — and to ever get out of their debt.
Senate Republicans say their proposal would stop requiring taxpayers who didn’t go to college to foot the loan payments for those with degrees.

Sen. Bill Cassidy, R-La., leaves the senate luncheons in the U.S. Capitol on Tuesday, June 3, 2025.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

Senate Republicans’ proposal to overhaul student loan repayment could trigger a surge in defaults, one expert said.
The Senate GOP reconciliation bill’s higher education provisions “would cause widespread harm to American families,” Sameer Gadkaree, the president of The Institute for College Access & Success, said in a statement. The proposals do so by “making student debt much harder to repay” and “unleashing an avalanche of student loan defaults,” he wrote.

The Senate Committee on Health, Education, Labor and Pensions introduced bill text on June 10 that would change how millions of new borrowers pay down their debt. The proposal made only minor tweaks to the repayment terms in the legislation House Republicans advanced in May.
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With control of Congress, Republicans can pass their legislation using “budget reconciliation,” which needs only a simple majority in the Senate.
Gadkaree and other consumer advocates have expressed concerns about how the new terms would imperil many borrowers’ ability to meet their monthly bills — and to ever get out of their debt.
More than 42 million Americans hold student loans, and collectively, outstanding federal education debt exceeds $1.6 trillion. More than 5 million borrowers were in default as of late April, and that total could swell to roughly 10 million borrowers within a few months, according to the Trump administration.

Borrowers may be in repayment for 30 years

Currently, borrowers have about a dozen plan options to repay their student debt, according to higher education expert Mark Kantrowitz.
But under the Senate Republican proposal, there would be just two repayment plan choices for those who borrow federal student loans after July 1, 2026. (Current borrowers should maintain access to other existing repayment plans.)
As of now, borrowers who enroll in the standard repayment plan typically get their debt divided into 120 fixed payments, over 10 years. But the Republicans’ new standard plan would provide borrowers fixed payments over a period between 10 years and 25 years, depending on how much they owe.
For example, those with a balance exceeding $50,000 would be in repayment for 15 years; if you owe over $100,000, your fixed payments will last for 25 years.

Borrowers would also have an option of enrolling in an income-based repayment plan, known as the “Repayment Assistance Plan,” or RAP.
Monthly bills for borrowers on RAP would be set as a share of their income. Payments would typically range from 1% to 10% of a borrower’s income; the more they earn, the bigger their required payment. There would be a minimum payment of $10 a month for all borrowers.
While IDR plans now conclude in loan forgiveness after 20 years or 25 years, RAP wouldn’t lead to debt erasure until 30 years.
The plan would offer borrowers some new perks, including a $50 reduction in the required monthly payment per dependent.
Still, Kantrowitz said: “Many low-income borrowers will be in repayment under RAP for the full 30-year duration.”

Loan payments could cost an extra $2,929 a year

A typical student loan borrower with a college degree could pay an extra $2,929 per year if the Senate GOP proposal of RAP is enacted, compared to the Biden administration’s now blocked SAVE plan, according to a recent analysis by the Student Borrower Protection Center.
The Center included the calculations in a June 11 letter to the Senate Committee on Health, Education, Labor and Pensions.

“As the Committee considers this legislation, it is clear that a vote for this bill is a vote to saddle millions of borrowers across the country with more student loan debt, at the same moment that a slowing economy, a reckless trade war, and spiraling costs of living squeeze working families from every direction,” Mike Pierce, the executive director of the Center, wrote in the letter.

GOP: Bill helps those who ‘chose not to go to college’

Sen. Bill Cassidy, R-La., chair of the Senate Health, Education, Labor, and Pensions Committee, said the proposal would stop requiring that taxpayers who didn’t go to college foot the loan payments for those with degrees.
“Biden and Democrats unfairly attempted to shift student debt onto taxpayers that chose not to go to college,” Cassidy said in a statement.
Cassidy said his party’s legislation would save taxpayers at least $300 billion. More

Workers value summer Fridays — a policy that allows workers to take Friday afternoon off over the summer months — over any other seasonal benefit, a new survey by Monster found.
Yet, employers have steadily phased out that perk as work-from-home Fridays became more common.

People enjoy an unusually warm day in New York City as temperatures reach the low 80s on June 4, 2025 in New York City.
Spencer Platt | Getty Images

Summer Fridays may be considered the most desirable perk of the season, but fewer employers are on board with the shortened workweek.
Companies have steadily phased out summer Fridays — a policy that allows workers to take Friday afternoon off over the summer months — as work-from-home Fridays became more common, experts say.

“Pre-pandemic, summer Fridays were thing, but hybrid overall has taken over,” said Bill Driscoll, technology workplace trends expert at staffing and consulting firm Robert Half.
As more commuters settle into flexible working arrangements, fewer workers are making Friday trips at all compared to mid-week traffic patterns, according to the 2024 Global Traffic Scorecard released in January by INRIX Inc., a traffic-data analysis firm.
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Among employees, however, summer Fridays are the most valued summer benefit, followed by summer hours and flextime, according to a new survey by job site Monster, which polled more than 400 U.S. workers in June. 
“Summer Fridays are highly valued among workers because, for many, they represent more than just a few extra hours off,” said Scott Blumsack, Monster’s chief strategy and marketing officer. This perk “can go a long way in showing employees they’re valued, which can help prevent burnout, boost morale, and improve retention during a season when disengagement can run high.”

Still, 84% of workers are not offered any summer-specific benefits, even though 55% also said those benefits improve productivity, Monster found.

Instead, hybrid — and to a lesser extent fully remote — job postings have increased in the last year as employers compete for talented job seekers who prioritize flexibility, according to research by Robert Half.
“Hybrid is a highly desirable situation right now and one that all levels of employees are looking for,” said Robert Half’s Driscoll.
More than five years after the pandemic, 72% of organizations also have return-to-office mandates, according to a separate hybrid work study by Cisco.
But, even with the mandates, employees are less likely to work in the office on Fridays, and much more likely to commute Monday to Thursday, Cisco found.

Employees value flexibility

As employee burnout and disengagement grows amid the wave of in-office mandates, work-life balance and flexible hours have become increasingly important, other studies show.
Corporate wellness company Exos, which works with large organizations such as JetBlue and Adobe, says burnout has gone down significantly among employees at firms that have made Fridays more flexible. Exos also tested out “You Do You Fridays” — and found significant benefits.
The more adaptable the schedule, the more positively employees view their company’s policies, the Cisco report also found.
With hybrid arrangements now common, workers put a high value on that flexibility — and 63% of all workers would even accept a pay cut for the option to work remotely more often, according to Cisco’s global survey of more than 21,500 employers and employees working full-time.
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House Republicans’ version of the One Big Beautiful Bill Act includes new money for certain families, including $1,000 investment accounts for children and an enhanced $2,500 child tax credit.
But the terms of the legislation, which is now before the Senate, may hurt low-income families when it comes to qualifying for the child tax credit, food assistance or health coverage.

Speaker of the House Mike Johnson, R-La., pictured at a press conference after the House narrowly passed a bill forwarding President Donald Trump’s agenda on May 22 in Washington, DC.
Kevin Dietsch | Getty Images

House reconciliation legislation, also known as the One, Big, Beautiful Bill, includes changes aimed at helping to boost family’s finances.
Those proposals — including $1,000 investment “Trump Accounts” for newborns and an enhanced maximum $2,500 child tax credit — would help support eligible parents.

Proposed tax cuts in the bill may also provide up to $13,300 more in take-home pay for the average family with two children, House Republicans estimate.
“What we’re trying to do is help hardworking Americans who are trying to provide for their families and make ends meet,” House Speaker Mike Johnson, R-La., said during a June 8 interview with ABC News’ “This Week.”
Yet the proposed changes, which emphasize work requirements, may reduce aid for children in low-income families when it comes to certain tax credits, health coverage and food assistance.
Households in the lowest decile of the income distribution would lose about $1,600 per year, or about 3.9% of their income, from 2026 through 2034, according to a June 12 letter from the Congressional Budget Office. That loss is mainly due to “reductions in in-kind transfers,” it notes — particularly Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps.

20 million children won’t get full $2,500 child tax credit

A member of MomsRising holds a sign on Capitol Hill to urge lawmakers to reject tax breaks for billionaires and protest cuts to Medicaid and child care on Capitol Hill on May 8 in Washington, D.C.
Brian Stukes | Getty Images Entertainment | Getty Images

House Republicans have proposed increasing the maximum child tax credit to $2,500 per child, up from $2,000, a change that would go into effect starting with tax year 2025 and expire after 2028.

The change would increase the number of low-income children who are locked out of the child tax credit because their parents’ income is too low, according to Adam Ruben, director of advocacy organization Economic Security Project Action. The tax credit is not refundable, meaning filers can’t claim it if they don’t have a tax obligation.
Today, there are 17 million children who either receive no credit or a partial credit because their family’s income is too low, Ruben said. Under the House Republicans’ plan, that would increase by 3 million children. Consequently, 20 million children would be left out of the full child tax credit because their families earn too little, he said.
“It is raising the credit for wealthier families while excluding those vulnerable families from the credit,” Ruben said. “And that’s not a pro-family policy.”

A single parent with two children would have to earn at least $40,000 per year to access the full child tax credit under the Republicans’ plan, he said. For families earning the minimum wage, it may be difficult to meet that threshold, according to Ruben.
In contrast, an enhanced child tax credit put in place under President Joe Biden made it fully refundable, which means very low-income families were eligible for the maximum benefit, according to Elaine Maag, senior fellow at the Urban-Brookings Tax Policy Center.
In 2021, the maximum child tax credit was $3,600 for children under six and $3,000 for children ages 6 to 17. That enhanced credit cut child poverty in half, Maag said. However, immediately following the expiration, child poverty increased, she said.
The current House proposal would also make about 4.5 million children who are citizens ineligible for the child tax credit because they have at least one undocumented parent who files taxes with an individual tax identification number, Ruben said. Those children are currently eligible for the child tax credit based on 2017 tax legislation but would be excluded based on the new proposal, he said.

New red tape for a low-income tax credit

House Republicans also want to change the earned income tax credit, or EITC, which targets low- to middle-income individuals and families, to require precertification to qualify.
When a similar requirement was tried about 20 years ago, it resulted in some eligible families not getting the benefit, Maag said. The new prospective administrative barrier may have the same result, she said.

More than 2 million children’s food assistance at risk

Momo Productions | Digitalvision | Getty Images

House Republican lawmakers’ plan includes almost $300 billion in proposed cuts to the Supplemental Nutrition Assistance Program, or SNAP, through 2034.
SNAP currently helps more than 42 million people in low-income families afford groceries, according to Katie Bergh, senior policy analyst at the Center on Budget and Policy Priorities. Children represent roughly 40% of SNAP participants, she said.
More than 7 million people may see their food assistance either substantially reduced or ended entirely due to the proposed cuts in the House reconciliation bill, estimates CBPP. Notably, that total includes more than 2 million children.
“We’re talking about the deepest cut to food assistance ever, potentially, if this bill becomes law,” Bergh said.
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Under the House proposal, work requirements would apply to households with children for the first time, Bergh said. Parents with children over the age of 6 would be subject to those rules, which limit people to receiving food assistance for just three months in a three-year period unless they work a minimum 20 hours per week.
Additionally, the House plan calls for states to fund 5% to 25% of SNAP food benefits — a departure from the 100% federal funding for those benefits for the first time in the program’s history, Bergh said.
States, which already pay to help administer SNAP, may face tough choices in the face of those higher costs. That may include cutting food assistance or other state benefits or even doing away with SNAP altogether, Bergh said.
While the bill does not directly propose cuts to school meal programs, it does put children’s eligibility for them at risk, according to Bergh. Children who are eligible for SNAP typically automatically qualify for free or reduced school meals. If a family loses SNAP benefits, their children may also miss out on those benefits, Bergh said.

Health coverage losses would adversely impact families

A protestor holds a sign on May 7, 2025 in Washington, D.C.
Leigh Vogel | Getty Images Entertainment | Getty Images

Families with children may face higher health care costs and reduced access to health care depending on how states react to federal spending cuts proposed by House Republicans, according to the Center on Budget and Policy Priorities.
The House Republican bill seeks to slash approximately $1 trillion in spending from Medicaid, the Children’s Health Insurance Program and Affordable Care Act marketplaces.
Medicaid work requirements may make low-income individuals vulnerable to losing health coverage if they are part of the expansion group and are unable to document they meet the requirements or qualify for an exemption, according to CBPP. Parents and pregnant women, who are on the list of exemptions, could be susceptible to losing coverage without proper documentation, according to the non-partisan research and policy institute.

Eligible children may face barriers to access Medicaid and CHIP coverage if the legislation blocks a rule that simplifies enrollment in those programs, according to CBPP.
In addition, an estimated 4.2 million individuals may be uninsured in 2034 if enhanced premium tax credits that help individuals and families afford health insurance are not extended, according to CBO estimates. Meanwhile, those who are covered by marketplace plans would have to pay higher premiums, according to CBPP. Without the premium tax credits, a family of four with $65,000 in income would pay $2,400 more per year for marketplace coverage. More