Policy Update: 7/8/25
Sasha@iaje.us
For New Staff: What is the Reconciliation Bill?
Congress has passed a budget reconciliation bill, which allows for expedited consideration of certain tax, spending, and debt limit legislation. This process enables lawmakers to make significant budget-related changes with a simple majority vote in the Senate, bypassing the filibuster. This new bill includes major updates affecting federal funding, tax policies, and public benefit programs like SNAP, Medicaid, Medicare, and the ACA.
Summary of Key Policy Changes and Timelines
1. Department of Homeland Security (DHS) Funding
DHS funding becomes immediately available.
Funds are authorized through September 2029.
2. Tax Code and Medical Benefit Changes
Changes to the federal tax code and certain medical benefit structures will be delayed.
These changes are expected to phase in gradually over the next several years.
Nutrition Assistance (SNAP)
Eligibility changes for SNAP take effect immediately upon passage of the law.
Cuts to SNAP benefits will not take effect until December 2026.
Health Coverage Programs
Medicaid and CHIP
Eligibility changes begin on October 1, 2026.
Cuts to Medicaid take effect in December 2026.
Medicare
Eligibility changes take effect immediately upon passage of the law.
Individuals already enrolled as of July 4, 2025, may remain in the program for an additional 18 months (through January 2027).
Affordable Care Act (ACA) Changes
ACA premium tax credit eligibility changes will apply to taxable years beginning December 31, 2026.
ACA exchange access will expand to lawfully present immigrants earning below 100% of the federal poverty level starting in taxable years beginning December 31, 2025.
Continuity of Coverage
Individuals already enrolled in Medicare or other impacted programs as of July 4, 2025 will retain their benefits for 18 months under current eligibility rules.
Lawfully present immigrants who currently do not qualify for ACA coverage will gain access starting in the 2025 tax year, Access to the ACA exchanges for lawfully present immigrants earning less than 100% of the federal poverty level will be effective in taxable years beginning December 31, 2025.
Key West Florida Commission managed to terminate their 287g agreement with ICE
(HAS BEEN REVERSED)
