The Big Beautiful Bill was signed into law by President Trump on July 4, 2025. The BBB is a complex budget reconciliation law (a law that follows a special procedure for more simplified passage) that contains over a thousand pages and hundreds of provisions. But how does it affect your big beautiful workplace?
Dependent Care
The BBB impacts Dependent Care Employee Flexible Spending Accounts. The employee contribution limit will increase to $7,500 beginning in 2026. You need to update your employee plans and communications.
Health Savings Accounts
Health Savings Accounts now have more options as to how pre-tax dollars may be used. One key area is telehealth coverage. Also, employees enrolled in ACA marketplace plans known as bronze or catastrophic plans will become eligible to contribute to HSAs. Finally, HSA funds will be allowed for some direct primary care with limits of $150 per month for individuals and $300 for families.
Immigration Enforcement
The BBB increases ICE funding from $10 billion to over $100 billion by 2029. ICE likely will become the biggest federal law enforcement agency. Included is approximately $30 billion for new ICE agents. No doubt there will be a dramatic increase in employer I-9 audits and workplace ICE raids. (See our recent presentation on ICE enforcement here.)
Medicaid
For the first time, the BBB adds minimum work requirements for Medicaid recipients. Individuals ages 19 to 64 on Medicaid are required to work a minimum of 80 hours per month....
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