Policy

OBBBA Benefits Changes 2026: What's Changing for SNAP, Medicaid & More

June 30, 2026 · 5 min read

The One Big Beautiful Budget Act (OBBBA) made sweeping changes to federal benefit programs. Key changes include SNAP work requirement expansion, Medicaid structural changes, an ABLE account age expansion to 46, and new childcare provisions. Here's what changed and what it means for your benefits.

SNAP changes under OBBBA

The OBBBA expanded SNAP work requirements and made structural changes to cost-sharing:

• Expanded work requirements: Work requirements (typically 20 hours/week of work, training, or volunteering) were extended to a broader age range of able-bodied adults without dependents. Previously applied to ages 18–54; OBBBA now extends the requirement up to age 64, and newly applies it to parents whose youngest child is 14–17.
• State cost-sharing: States are required to contribute more toward SNAP costs in future years, which may affect how aggressively states administer the program.
• Broad income limits unchanged: The 130% FPL gross income limit for SNAP eligibility remains in place as of mid-2026.

ABLE account expansion

This is one of the most significant positive changes for people with disabilities:

• Age of onset extended to 46: Previously, you had to have a disability that began before age 26 to open an ABLE account. OBBBA extends this to age 46 — allowing millions more people to qualify.
• Annual contribution limit: $20,000/year (2026) from all sources combined.
• SSI exclusion: Balances up to $100,000 are excluded from SSI resource limits.
• Medicaid exclusion: ABLE account funds are not counted as assets for Medicaid eligibility.

Childcare and family provisions

• Dependent Care FSA increased: The pre-tax Dependent Care FSA limit was increased to $7,500/household (from $5,000) — the first increase since 1986 — allowing working parents to set aside more pre-tax income for childcare costs.
• Child Tax Credit: The OBBBA set the Child Tax Credit at $2,200 per child, with up to $1,700 refundable.

Tax credits terminated by OBBBA

The OBBBA (P.L. 119-21, signed July 4, 2025) ended several clean-energy tax credits. If you were planning to claim these, they are no longer available:

• Home energy efficiency credit (25C): Terminated. No longer available for qualifying home improvements.
• Residential clean energy credit (25D, solar): Terminated. No longer available for new solar installations.
• EV tax credit (30D): Terminated for vehicles acquired after September 30, 2025. If you purchased a qualifying EV on or before that date, you may still claim the credit for that purchase; vehicles acquired after are not eligible.

Other tax provisions

• Standard deduction increased: $16,100 for single filers and $32,200 for married filing jointly in 2026.
• ABLE account contribution limit: Raised to $20,000/year (from $18,000).

Medicaid-related changes

The OBBBA included provisions affecting Medicaid funding structures:

• Changes to federal matching rate (FMAP) formulas that affect how much federal vs. state money funds Medicaid in different states.
• Provisions around Medicaid eligibility verification requirements for adults in expansion states, potentially affecting how frequently states must verify income.
• Work requirements for certain adult Medicaid populations are under discussion but implementation varies by state and is subject to federal waiver approvals.

As of mid-2026, core Medicaid eligibility at 138% FPL remains in place in expansion states. Contact your state Medicaid agency for the most current rules.

Common questions

What is the One Big Beautiful Budget Act (OBBBA)?

A major federal budget reconciliation bill passed in 2025 that made significant changes to SNAP, Medicaid, ABLE accounts, childcare tax provisions, and other federal programs.

How does the OBBBA change SNAP?

Expanded work requirements (now up to age 64 for able-bodied adults without dependents, and newly applied to parents of children 14–17) and modified state cost-sharing. Income limits remain at 130% FPL gross as of mid-2026.

What is the ABLE age expansion under OBBBA?

The disability onset age for ABLE account eligibility expanded from 26 to 46. Millions more people with disabilities can now open ABLE accounts and save up to $20,000/year without affecting SSI or Medicaid.

How does OBBBA affect Medicaid?

Changes to FMAP formulas and potential future work requirements for some populations. Core 138% FPL income limit remains in expansion states as of mid-2026. Check your state agency for current rules.

Did OBBBA end any tax credits?

Yes — OBBBA terminated the home energy efficiency credit (25C), the residential clean energy/solar credit (25D), and the EV tax credit (30D) for vehicles acquired after September 30, 2025. These are no longer available.