Big Beautiful Bill Is Now Law: Here’s What It Means for Military Families

President Trump’s “Big Beautiful Bill” has officially been signed into law, and it includes sweeping changes across defense spending, healthcare, taxes, and financial protections. While headlines focus on larger military investments, NMFA continues to dig into the complexities of these changes and the real-life impact they will have on service members and their families.

Here’s a breakdown of what we know so far:

Military Family Quality of Life

The Department of Defense will receive $150 billion in additional funding, primarily allocated to weapons acquisition, shipbuilding, and the development of the “Golden Dome” defense system. However, within that funding package is roughly $9 billion set aside specifically for service member and military family quality of life initiatives—programs that already exist and are receiving a temporary funding boost as part of the reconciliation process, including:

• $2.9 billion to supplement Basic Allowance for Housing (BAH).
• $100 million in Department of Defense Impact Aid to support public schools serving large numbers of military children.
• Increased investment in child care fee assistance.
• Upgrades to barracks and privatized family housing.
• Additional funding for military spouse professional fee assistance.
• More support for the military health system, though specific breakdowns are unknown at this time.

Healthcare for Special Needs Families

The bill includes significant reductions to Medicaid, the federal program that provides health care to many low-income Americans. While most military families rely on TRICARE for their healthcare needs, we are concerned about the impact of Medicaid cuts on special needs military families, who often rely on Medicaid to obtain services that TRICARE doesn’t cover. Military families already face long wait lists to obtain services through Medicaid, and cuts to the program may make those wait lists even longer.

SNAP Requirements

Also included in the new legislation are funding cuts to the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps. We know that far too many military families struggle to put food on the table, but many aren’t able to qualify for SNAP because BAH is included in eligibility calculations. We are concerned that cuts to the program will force states to tighten their eligibility requirements, making it even harder for military families in need to qualify.

While relatively few military families receive SNAP benefits, the program is a lifeline for many veterans and their families. It often takes six months for veterans in transition to find work, and during that time, SNAP can help put food on the table for the whole family. We are disappointed that the bill reinstates work requirements for veterans to be able to qualify for SNAP benefits

Consumer Protection Takes a Hit

The bill significantly slashed the Consumer Financial Protection Bureau (CFPB) budget, including its Office of Servicemember Affairs, which is tasked with protecting military families from financial fraud or predatory lending.

NMFA regularly hears from families who rely on CFPB to help clear up inaccurate credit reports, deal with lenders refusing to follow the protections of the Service Members Civil Relief Act and cut through the red tape that can often happen in a relationship with a bad lender. Just last year, the Supreme Court voted to uphold the funding mechanism that allows CFPB to operate. With fewer staff, the CFPB will have limited resources to investigate complaints or take action, which could leave military families open to scams and financial abuse with limited recourse.

Tax Changes: Bigger Child Tax Credit (But With Limits)

The legislation makes the 2018 tax brackets permanent and increases the Child Tax Credit from $2,000 to $2,200 per child. This sounds like good news but might not be for military families. The full credit is only available to families who have enough taxable income to qualify. Since many types of military pay (i.e., BAH, BAS, etc.) aren’t taxable, we’re concerned that some military families may not qualify for the full benefit. (And yes, you read concerned that that: Your BAH might count for when you need SNAP benefits, but it might not be counted when you need a tax credit.)

Bottom Line

This is a huge piece of legislation, and a lot of it will have to play out for us to understand how exactly it will be enacted, practiced, and impact you. But we’re not going to just wait and see — NMFA continues to dig into what this new law means for military families, especially those with unique financial, healthcare, and special needs concerns.

You are at the heart of everything we do. Tell us:

What concerns do you have about how this new legislation could affect your military family?