Industry News

On July 3, 2025, the Groom Law Group released its publication, One Big Beautiful Bill: The Benefits Provisions. The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. In this publication, the Groom Law Group provides a chart that summarizes the House and Senate proposals as well as the OBBBA final provisions and effective dates.

The budget reconciliation package included tax incentives related to paid family leave, employer-provided child care, telehealth services and education benefits, among others. Several tax credits that were temporary under the Tax Cuts and Jobs Act of 2017 are now permanent, which generally may result in more employers offering benefits related to those tax credits.

There were numerous benefits-related provisions included in the final version. Notably, the new law does not change the tax incentives for retirement savings or cap the exclusion for employer-sponsored health insurance. However, it does include other benefit-related provisions, such as changes to Health Savings Accounts (HSAs), High-Deductible Health Plans (HDHPs), fringe benefits, education expenses, compensation-related provisions in the form of tips and overtime wages, and executive compensation. In addition, the Act creates new tax-preferred “Trump Accounts” for children and provides the Office of Management and Budget with $100 million for deregulatory activities.

The chart is available here.