The Republican tax bill, approved by the U.S. House of Representatives, is expected to have a significant impact on people's finances. According to an analysis by the Congressional Budget Office (CBO), the poorest Americans could lose approximately $1,600 each year, while the wealthiest households might see an average annual gain of $12,000. Middle-income households, however, could experience a more modest increase of about $500 to $1,000 annually. The proposed reductions affecting low-income households are due to cuts in social support programs, including Medicaid and the Supplemental Nutrition Assistance Program. The bill also suggests expanding work requirements for food assistance eligibility and introducing new "community engagement requirements" for Medicaid. Some Republicans, such as Treasury Secretary Scott Bessent, have disputed the CBO's findings, arguing that failing to pass the bill could result in economic problems. Nevertheless, the CBO has stated that the cost of the tax bill would be covered by income from tariffs.