On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill Act” into law—a wide-reaching piece of legislation that touches everything from tax rates and healthcare to education, housing, and family benefits.

For LGBTQIA+ individuals and families, some of these changes may create new planning opportunities, while others may require a closer look at how you structure your finances. Because LGBTQIA+ households often navigate unique legal, family, and income dynamics, understanding how these changes intersect with your broader financial goals is essential. Below, we break down key provisions of the bill and explore how they may factor into financial decision-making in the months and years ahead.

Planning Consideration:
Review your past tax returns to determine whether itemizing still makes sense or if the new standard deduction offers more value. If you live in a high-tax state, the expanded SALT cap may offer meaningful savings, especially for LGBTQIA+ couples who file jointly. Coordinate with a financial planner or tax professional to update withholding, optimize charitable giving strategies, and ensure these changes are factored into your broader financial plan.

2.  No Tax on Tips, Overtime, Social Security:

Federal income tax is eliminated on tips, overtime pay, and Social Security income. This provision is designed to benefit service workers, hourly employees, and retirees by increasing their after-tax income. Just keep in mind that phaseouts do apply, so wealthier taxpayers will likely still owe tax.  Also, these provisions are temporary and set to expire at the end of 2028.

Planning Consideration:
This provision may benefit LGBTQIA+ family members who work in occupations that customarily receive tips. Current law sunsets these benefits on December 31st of 2028 unless extended.

Family Planning and Childcare

3. Expanded Dependent Credit 

The child and dependent care tax credit has been expanded, increasing the cap on eligible expenses, while the paid leave tax credit is now permanent. Together, these changes are designed to ease the financial burden of caregiving for working families.

Planning Consideration:
This credit may benefit LGBTQIA+ households that include multigenerational families or dependents who fall outside traditional definitions. The bill also makes the adoption tax credit partially refundable.  Ensure all qualifying dependents are documented appropriately to receive the full benefit.

4. Introduction of Trump Savings Accounts

Each eligible newborn’s account receives a one-time initial deposit of $1,000 from the government to help kickstart savings for their future. Parents (and others) can contribute up to $5,000 annually—all funds that can benefit from tax-deferred growth. Funds can be withdrawn for approved life expenses—such as first-time home purchases, education costs, or caregiving responsibilities—without penalty.

Planning Consideration:
This account may provide an avenue to make tax-deferred contributions for children. The accounts are not means-tested and are offered to families across all income levels.  However, the benefit will sunset in 2028.  A planner can help determine how this might fit into your broader savings strategy.

Healthcare and Benefits

5. Expanded HSA eligibility

The bill significantly expands and enhances access to HSAs.   Funds can be used for a wide array of health-related expenses, including mental health, fertility treatments, and gender-affirming care.

Planning Consideration:
This could be a valuable savings and tax-planning tool, especially for LGBTQIA+ individuals with high out-of-pocket health costs or those pursuing family-building options. Consider integrating HSAs into your broader healthcare and savings strategy.

6. Preservation of Medicaid Coverage for Gender-Affirming Care 

The bill preserves Medicaid coverage for gender-affirming care by excluding a proposed ban, ensuring continued access to essential treatment for transgender individuals. Keep in mind, legislation is subject to change over time, so it’s important to continue to stay informed and be prepared to make any necessary adjustments.   

Planning Consideration:
If you rely on Medicaid or community-based health centers for inclusive care, now is a good time to review your healthcare network and identify potential service gaps. Consider setting aside reserves for unexpected out-of-pocket costs or exploring supplemental insurance options. A financial planner can help integrate these healthcare needs into your broader financial strategy.

7. Cuts to Medicaid and SNAP Funding 

The bill includes broader cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which could impact lower-income LGBTQIA+ individuals who rely on these programs.

Planning Consideration:
If you or members of your family rely on these services, begin planning for potential changes in coverage or support. Community-based resources and advocacy may become even more important.

Housing and Community Support

8. Mortgage Insurance Deductibility

Borrowers can now permanently deduct mortgage insurance premiums (including PMI, FHA MIP, VA funding fees, and USDA guarantee fees), subject to income limits.

Planning Consideration:
This can be helpful for LGBTQIA+ buyers making low down payments—often first-time or first-generation buyers—by reducing the after-tax cost of homeownership.

9. Military Spending and LGBTQIA+ Service Members 

Increased defense spending may improve benefits or support for military families. However, with a history of potentially exclusionary policies, it’s important to stay informed of ongoing changes that could affect access to benefits.  

Planning Consideration:
LGBTQIA+ service members should monitor changes to benefit programs and stay connected with support networks that specialize in military family financial planning.

Education and Employment

10. Changes to 529 Education Accounts 

The bill makes several major changes to 529 education savings plans:

• Raises the annual withdrawal limit for K-12 education from $10,000 to $20,000 per student.
• Expands the definition of “qualified expenses” to cover more K–12 costs, postsecondary credentials, and additional educational therapies (including for students with disabilities).
• Allows tax-free rollovers from 529 plans to ABLE accounts, increasing flexibility for families with individuals with disabilities.

Planning Consideration:
If you or your children are pursuing nontraditional education routes or managing existing debt, revisit your 529 strategy. The expanded flexibility may open new planning options.

11. Apprenticeship Program Expansion

• Registered Apprenticeship Grants: As part of a larger push to expand apprenticeship opportunities, the Department of Labor (DOL) announced nearly $84 million in State Apprenticeship Expansion Formula Grant Funding shortly before the bill’s passage. States and territories will use these funds to expand registered apprenticeships in both traditional and emerging industries, as outlined and supported by the new law.
• Workforce Pell Grants: The bill introduces a new provision allowing Pell Grants to fund short-term workforce training and credential programs. Eligible programs must offer 150–600 hours of instruction across 8 to 15 weeks and lead to recognized, portable credentials in high-skill, high-wage, or in-demand fields. This is seen as a significant expansion of federal support for workforce and apprenticeship-style training, increasing access and flexibility for learners who may prefer alternatives to traditional degree programs.
• 529 Savings Plan Expansion: The bill expands the definition of qualified education expenses under 529 savings plans. This now includes additional costs related to postsecondary credential and education programs, many of which are associated with technical and apprenticeship training. This makes it easier for individuals to use tax-advantaged savings for non-degree credentials that are often connected to apprenticeships

Planning Consideration:
If you or a family member are considering a trade apprenticeship, factor in the reduced cost of education and earlier career entry when mapping out long-term goals. With lower student debt and earlier income, you may have an opportunity to begin retirement savings sooner or prioritize homeownership. Incorporate these timelines into your financial plan to maximize early-career compounding.

Final Thoughts 

While the “One Big Beautiful Bill Act” introduces a wide range of changes, the effect on LGBTQIA+ households will depend on your specific circumstances—from how you earn income to how you plan your family and prepare for retirement. Some provisions may offer new tools for tax and healthcare planning; others may prompt a conversation about adjusting your financial strategy.

As always, financial planning is most effective when it’s tailored to your life. If you’re unsure how these updates may affect you or want to explore new opportunities, speak with a fiduciary advisor who understands your goals, your household, and your broader financial picture.

Connect with us to schedule a personalized consultation to ensure your financial plan is aligned with your current needs and goals.