Premiums rise ~$2,000–$3,500/yr

Deductibles ~$4,000–$5,000

Medical debt ~$1,000–$2,500/yr,often carried at 20–30% APR 

Impact - Severe

Eligibility tightened; recertification & work rules expanded; coverage gaps 

Loss of near-zero-cost coverage forces households to absorb $6,000–$8,000/yr in replacement costs or forgo care → ER bills, collections, or untreated illness 

No major caps or relief

Out-of-pocket $600–$1,200/yr, commonly financed with revolving credit

Section 8 / HUD growth capped

Rent burden rises $1,500–$3,000/yr for affected households 

Rent burden rises; reliance on cards or personal loans

No rate relief; deficits pressure yields

Mortgage rates stay high

Ownership delayed or impossible

Work rules & benefit tightening

Everyone must re-apply

Benefit losses $1,200–$2,500/yr 

Grocery gaps filled with credit cards

No household offset

Electricity +6.7–7.4% increase

Gas ~9%+ increase

Electric bills ~30% higher than ~2021 → short-term borrowing

Forgiveness & repayment relief narrowed 

People with federal student loans

~42 million 

Borrowers forgiven through past programs

~5.3 million 

Total forgiven debt

~$180 billion–$190 billion

Median forgiven per person (approx.)

~$20,000

Impact - Severe

No APR caps or relief

20–30% APRs

Payments mostly go to interest

No restructuring

7–14%+ APRs on depreciating assets

Typical payment $150–$300/month higher vs pre-2022

Impact - Severe

No hardship or modification programs

Delinquencies at highest since 2009

Repossessions +20–30%  increase

Post-repo debt often $5k–$10k+

HELOC = Home Equity Line of Credit

No intervention

12–14M households exposed

Rates reset from ~4% → 8.5–10.5

Payments +$200–$500/mo, often as amortization begins

Credit standards tighter

40–45% of borrowers locked out

Personal loan APRs 14–21%

Balance transfers rarer

Bankruptcies +20–25% increase

COLA lags real costs

Avg benefit ≈ $1,900/mo

Purchasing power declines yearly

Impact - Severe

Stricter reviews; no real increase

SSDI ≈ $1,540/mo

SSI ≤ $943/mo 

Any delay risks eviction & shutoffs

People who live off investments keep more of what they earn than people who work for a paycheck — and big companies often pay less tax than their own workers. 

• Investment income (stocks, funds):

  • Taxed around 15–20%

  • So $100 earned → $80–85 kept
    
    

• Wages (paychecks):

  • Federal + payroll taxes often total 30–35%

  • So $100 earned → $65–70 kept
    
    

• Corporations:

  • Legal rate: 21%

  • Actual rate: often 10–14%, sometimes near zero

  • Many large companies pay less tax than their employees do
    
    

Why this matters for everyday people

• When investment income and corporate profits are lightly taxed:

  • The government borrows more

  • Interest rates stay higher

  • Support programs get cut
    
    

• Households don’t see the benefit — they see higher bills and debt

People who live off investments keep more of what they earn than people who work for a paycheck — and big companies often pay less tax than their own workers. 

Impact - Severe

The numbers

• U.S. federal debt before: ~$33.2 trillion

• Added by the bill: +$1.4 trillion

• New total federal debt: ~$34.6 trillion

So the bill takes total U.S. debt from about $33.2T → about $34.6T.

U.S. debt  

Current ballpark (2025–early 2026)

• U.S. federal debt: ≈ $34.5–$34.7 trillion

• U.S. GDP: ≈ $27.5–$28.0 trillion
  
  

Debt-to-GDP ratio

34.6/27.7 = Approx 1.2527.734.6​≈1.25

➡️ Yes: U.S. federal debt is about 125% of GDP

Why this ratio matters 

• GDP ≈ the country’s annual income

• Debt ≈ the country’s credit card balance
  
  

So this means:

The U.S. owes about 25% more than it earns in an entire year.

That’s historically high outside of wartime.

Why it’s not an immediate collapse (but not “fine”)

Why markets haven’t blown up yet

• Dollar is still the global reserve currency

• Treasuries still function as global collateral

• U.S. can issue debt in its own currency
  
  

Why pressure is building

• Interest costs now rise faster than GDP

• Foreign buyers (China, Japan) are less price-insensitive

• More debt now directly pushes rates higher

• Households, not government, are absorbing the shock
  
  

Ramifications/household:

→ ~$10,500 more debt per household

→ plus $350–$465 per year in added interest costs economy-wide

Why: The system is squeezing monthly cash, not rewarding “good behavior.”

Do this now:

• List only essentials: rent, utilities, food, transportation, medicine

• Cut or pause anything that is not essential, even temporarily

• If you’re short each month, stop using credit cards for basics unless it’s the only option
  
  

Simple rule:

If it doesn’t keep you housed, fed, working, or healthy — pause it.

Why: 20–30% APR debt grows faster than wages or inflation.

Do this now:

• Pay extra (even small amounts) toward the highest-APR balance

• Avoid BNPL for food, gas, or utilities — that’s a warning sign

• If you can’t lower balances after 3 months, talk to a nonprofit credit counselor early (before default)
  
  

Simple rule:

High-interest debt is an emergency, not “normal life.”

Why: One shock (car, medical, hours cut) pushes people into default.

Do this now:

• Aim for $500–$1,000 in cash savings first

• Keep it separate from spending money

• Even $10–$25 per paycheck counts
  
  

Simple rule:

Cash buys time. Time prevents panic decisions.