Dear Friends, 

President Trump signed the Big Ugly Bill into law on July 4, 2025. The bill is over 150,000 words long, and it contains a great deal of policy changes that will impact Americans greatly in the coming years.  

I voted against the bill because it will transfer trillions in tax cuts to the wealthiest American, at the expense of families, children, veterans, and seniors. It will cut more than $1 trillion from Medicaid, Medicare, and the Affordable Care Act. The Big Ugly Bill will also cut almost $200 billion from SNAP, the largest cut in the program’s history. This translates to devastating impacts for New York and the New Yorkers who rely on these vital programs every day. 

Below is information on how the law might impact you and how you can navigate these changes. As always, my constituent services team is available to help you. Please feel free to contact my offices at: 

District Office: 212-367-7350  

Washington, D.C.: 202-225-5635 

Healthcare:  

Medicaid 

The Big Ugly Bill significantly impacts Medicaid enrollees. Starting January 1, 2027, the law implements the first ever national work requirement, which means that non-disabled adults age19-64 must log 80 hours per month of work or approved activities to keep their Medicaid coverage. Additionally, HHS must recheck beneficiaries’ income every 6 months rather than once a year, significantly increasing the paperwork burden on enrollees and agency staff. NY State estimates that up to 1.5 million New Yorkers could lose Medicaid coverage due to these changes.  

Where to get help: Contact NY State of Health Assistors and Brokers at Marketplace ::Individual & Families::. 

If you’re in one of the groups below, apply on ACCESS HRA: 

• adults 65 or older 
• receiving Medicare and are not a parent/caretaker relative of minor children, 
• living with a disability and/or blindness 
• a young adult under age 26 who was under foster care in the past. 

Medicare  

The Big Ugly Bill also directly affects low-income seniors by making it harder for Medicare enrollees to access federal programs that would help them afford their healthcare costs, including prescription drug costs. The law blocks implementation of an existing regulation that makes it easier for low-income Medicare beneficiaries to enroll in Medicare Savings Programs (MSPs) that lower Medicare premiums and out-of-pocket costs.  

The result is that states are prevented from streamlining and automating enrollment into MSPs. The Congressional Budget Office estimates that the Big Ugly Bill would cause 1.3 million Medicare enrollees to be unable to access the extra assistance. This provision took effect immediately on enactment (July 4, 2025); no autoenrollments in MSPs will occur unless future legislation reverses it. 

Where to get help: Call the NY State Office for the Aging’s Health Insurance Information Counseling and Assistance Program (HIICAP). 

Food Stamps/SNAP:  

The Big Ugly Bill expands work requirements for SNAP beneficiaries. Before passage of the bill, beneficiaries aged 18-54 without dependents were required to work 20 hours per week. The Big Ugly Bill expands this to those ages 18-64 and parents with children aged 14+, as well as former foster youth, veterans, and homeless adults who previously had exemptions. In New York, this will impact an estimated 300,000 households, who may lose some or all SNAP benefits, averaging $220 per month per household. 

These changes are scheduled to be implemented by March 2026. 

Where to get help: Visit Supplemental Nutrition Assistance Program (SNAP) – ACCESS NYC.  

Taxes: 

The law includes the following tax provisions: 

• The Big Ugly Bill made the individual tax rate cuts from the 2017 Tax Cuts and Jobs Act (originally set to expire in 2025) permanent.  
• There are now several new tax breaks on tip income and overtime pay. 
• A new child-focused “Trump Account” savings account allows contributions from families, employers, nonprofits, and the government. Starting in 2026, employers can contribute up to $2,500 tax-free, and children born between Jan. 1, 2025 and Dec. 31, 2028 can receive $1,000 from the Federal government. 
• The child tax credit also increased from $2,000 to $2,200. 
• State and Local Tax (SALT) deduction caps were raised from $10,000 to $40,000 (for those making under $500,000) for the next 5 years.  
• The Big Ugly Bill adds a temporary $6,000 “Senior Deduction” for tax years 2025-2028 that shields Social Security income from federal tax for most seniors.  

The majority of these changes are effective from 2025 through the end of 2028.  

Where to get help: Contact your nearest Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) site. 

Immigration:  

The Big Ugly Bill implements steep increases in immigration fees and provides more funding for mass deportation efforts. The law provided unprecedented amounts of money for border security and immigration outside of Congress’s annual appropriations process. It grants the Executive Branch broad discretion to funnel $150 billion for enforcement activities and border security with almost no congressional oversight. In addition, the Big Ugly Bill imposes major fee increases for work permits, asylum filings, appeals in immigration court, and many other critical immigration benefits.  

Where to get help: Contact the Mayor's Office of Immigrant Affairs. 

Student Loans: 

New Borrowing Limits 

Beginning July 1, 2026, new student loans will be subject to borrowing limits, as follows:  

Undergraduate Students: 

• Direct Subsidized and Unsubsidized Loans: No change. 
• Annual cap: Varies based on grade levels. Learn more here. 
• Lifetime cap: $31,000 for dependent students 
• Parent PLUS Loans: 
• Annual cap: $20,000 
• Lifetime cap: $65,000 per child (shared between both parents) 
• Important Exception: Parents who took out a Parent PLUS loan before July 1, 2026, may continue borrowing for up to the Cost of Attendance for three additional years to finish their current program. 

Graduate Students: 

• Direct Unsubsidized Loans for Advanced Degree Programs (Master’s, PhD): 
• Annual cap: $20,500 
• Lifetime cap: $100,000 
• Direct Unsubsidized Loans for Professional Degree Programs (i.e. law, medicine): 
• Annual cap: $50,000 
• Lifetime cap: $200,000 
• Graduate PLUS Loans 
• Phasing out starting July 1, 2026. 
• Important Exception: Borrowers who received a Grad PLUS loan before July 1, 2026, may continue borrowing under that program for up to three additional years to finish their current program. 

Repayment Plan Changes  

The Big Ugly Bill also introduces changes to how student loans will be repaid, beginning in July 2026. Federal student loans that are disbursed on or after July 1, 2026, will have just two repayment plan options to choose from: 

Standard Fixed Repayment Plan 

• 10 to 25-year repayment based on loan balance 
• Only option for Parent PLUS loans disbursed on or after July 1, 2026 
• Caution: If you take out a new Parent PLUS loan on or after this date, ALL of your federal loans must be repaid under this plan. 

Repayment Assistance Plan (RAP) 

• Monthly payments range from 1% to 10% of your Adjusted Gross Income (AGI). 
• You receive a $50 reduction in your monthly payment for each dependent claimed on your tax return. This typically includes children under 19, full-time students under 24, or others you financially support according to IRS guidelines. 
• Minimum monthly payment is $10, even if you have no income. 
• Spousal income can be excluded if you file taxes separately. 
• There is no income protection threshold and no adjustment for inflation. 
• No interest accrual on unpaid interest — your loan balance will not grow due to unpaid interest. 
• Loan forgiveness is available after 30 years of qualifying payments. 
• Eligible for Public Service Loan Forgiveness (PSLF) if all other requirements are met. 

Key Dates to Know if You Received Your Student Loans Before July 1, 2026 

Before July 1, 2026: Act Now if You Have Parent PLUS Loans. To stay eligible for forgiveness programs like Income-Driven Repayment Forgiveness (IDRF) or Public Service Loan Forgiveness (PSLF), you must: 

• Consolidate your Parent PLUS loan into a Direct Consolidation Loan 
• Enroll in the Income-Contingent Repayment (ICR) plan 
• Complete both steps before July 1, 2026 (Some of these rules are still being finalized and subject to change.) 
• After this date, new or reconsolidated Parent PLUS Loans will only qualify for the Standard Repayment Plan, which does not offer forgiveness options. 

Before July 1, 2028: Current Borrowers Can Enroll in Existing IDR Plans 

If your loans were disbursed before July 1, 2026, you can still enroll in or stay on these current IDR plans until July 1, 2028: 

• Income-Based Repayment (IBR) 
• Pay As You Earn (PAYE) 
• Income-Contingent Repayment (ICR) 
• After this date, PAYE and ICR will sunset. IBR will remain an option. 

Income Based Repayment (IBR) (Modified Version)  

• No income eligibility test required. 
• Monthly payment cap remains in place. 
• 15% of discretionary income if you have any loan disbursed before July 1, 2014, with forgiveness after 25 years of qualifying payments. 
• 10% of discretionary income if you are a new borrower whose first loan was disbursed on or after July 1, 2014, with forgiveness after 20 years. 
• Not available to borrowers with loans disbursed on or after July 1, 2026. 

Existing borrowers in SAVE, PAYE, or ICR must transition to RAP or IBR by July 1, 2028, or else default to RAP.  

For Borrowers Currently in the SAVE Plan 

On August 1, 2025, interest resumed accruing for borrowers in SAVE forbearance. Borrowers will not have to make payments while they are in the SAVE Forbearance, but interest will accrue and loan balances will grow. You can choose to stay in the SAVE program for now and accrue interest on your loans or you can switch to a different income-driven repayment plan: IBR, PAYE, or ICR (if eligible). Important caveat: PAYE and ICR will only remain available until 2028 for borrowers who took out loans before July 1, 2026. Borrowers taking out loans after that date will not have access to these plans. This means you will need to switch again if you enroll in PAYE or ICR. 

The Department of Education has signaled that SAVE forbearance will end soon, though the exact date remains uncertain and may depend on ongoing litigation. All borrowers currently relying on the SAVE forbearance will eventually need to switch to a different repayment plan. Fow now, you should: 

• Monitor your loan servicer account regularly to stay informed about when the forbearance may end. 
• Use a repayment calculator (such as the Loan Simulator on studentaid.gov) to compare your options and determine which plan best fits your needs. 
• Apply to switch repayment plans now or before the forbearance officially ends. When you apply, you may receive an automatic 60-day processing forbearance, giving you more time before payments resume. 

Where to get help: Get Free Financial Counseling at a NYC Financial Empowerment Center. 

Know that in these challenging times, your voices matter, and my offices are here to assist you. Please visit my website at Nadler.House.gov or reach out to my offices at:

District Office: 212-367-7350  

Washington, D.C.: 202-225-5635 

Sincerely,

JERROLD NADLER

Member of Congress