One Big Beautiful Bill Passes: What It Means for Florida’s Taxes, Benefits, and Business
Florida Enters a New Economic Chapter
On July 4, 2025, former President Donald Trump signed the One Big Beautiful Bill into law, officially titled H.R. 1 (Public Law 119‑21). This landmark legislation reshapes taxes, healthcare programs, and federal funding with far-reaching consequences. For Florida residents and businesses, the changes are complex—but Square Accounting is here to help you navigate them with clarity and precision.
Major Tax Changes for Florida: Key Takeaways
Extended Trump-Era Tax Cuts
Section 199A (20% deduction for pass-through income) continues through 2034.
Immediate 100% expensing for equipment and property is reinstated.
Estate tax exemption indexed for inflation—benefiting high-net-worth Floridians.
Square Accounting Insight: These provisions offer substantial relief to LLCs, S-corps, and family businesses. We recommend reviewing entity structures to maximize deductions.
Higher Standard Deduction for Seniors
Qualifying Floridians over 65 will see an additional $6,000 deduction, shielding more retirement income from federal taxes.
Medicaid Cuts and Coverage Losses in Florida
Work Requirements for Medicaid
Starting in 2027, adults aged 19–64 must verify 80 hours of work or volunteer activity each month to maintain coverage. Florida’s Agency for Health Care Administration will bear the brunt of eligibility enforcement.
Millions at Risk of Losing Coverage
CBO estimates up to 11.8 million Americans could lose Medicaid access. Florida’s rural and low-income counties are particularly exposed.
Square Accounting Tip: If you operate a healthcare practice or nonprofit, prepare for coverage gaps in your patient base. Consider financial impact models now.
SNAP (Food Stamp) Reductions
Florida Will Inherit More Cost Burden
Beginning in 2028, Florida must cover up to 15% of SNAP program costs. That could mean state-level benefit reductions or stricter eligibility enforcement.
Food Insecurity Expected to Rise
With an estimated 3 million households nationwide losing full SNAP benefits, food banks and support programs will likely see increased demand.
Gender-Affirming Care Restrictions
An amendment to the law now prohibits Medicaid and CHIP from covering any gender-affirming care, regardless of age. For trans and intersex individuals in Florida, this federally mandated rollback sharply reduces healthcare access.
Square Accounting Note: Healthcare providers should prepare for compliance audits and possible insurance adjustments related to this new regulation.
Business Growth Opportunities in Florida
New Small Business Tax Incentives
Continued pass-through deductions
Increased capital investment expensing
R&D tax credit enhancements
Manufacturing and Onshoring Support
Federal incentives now favor businesses that relocate supply chains back to U.S. soil. Florida’s logistics infrastructure positions it well to attract new investment.
Tax Strategy Tip: Our team can help you assess eligibility for manufacturing deductions, energy credit replacements, or cost segregation planning.
Rural Health Fund: A Limited Lifeline
While the bill includes a $50 billion rural hospital fund, most of Florida’s Medicaid-heavy providers will still face financial pressure. Closures or consolidations are expected, especially in counties already underserved.
Immigration Enforcement Escalates
Florida will see an infusion of federal enforcement resources. The Department of Homeland Security’s budget expands by over $170 billion, triggering expanded deportation operations and detention facilities.
Climate & Energy Rollbacks
The bill eliminates clean energy tax credits and promotes coal infrastructure. Environmental advocates say this puts Florida’s coastline and ecosystem at further risk, especially with rising sea levels.
Square Accounting Perspective: Companies pursuing green tax strategies or ESG goals should review portfolios immediately to adapt to new federal priorities.
Federal Deficit Forecast: What’s the Long-Term Risk?
The Congressional Budget Office projects the bill will add $2.8 trillion to the national debt by 2034. Critics warn that future spending cuts—or tax hikes—are inevitable.
Implementation Timeline for Florida
2025–2026: Planning and regulatory rulemaking
2027: Major Medicaid and SNAP enforcement begins
2028: State cost-sharing for SNAP activates
2030–2034: Full rollout of tax and enforcement programs
Planning Tip: Now is the time to conduct tax forecasting and benefit eligibility audits. Square Accounting offers customized risk assessments for families and businesses.
Legal and Policy Backlash Brewing
Advocacy groups are preparing legal challenges to Medicaid restrictions and gender care bans. Florida’s political leaders are split, with some praising tax relief and others denouncing the social impact.
Conclusion: Adapt and Strategize With Square Accounting
Florida stands at a fiscal crossroads. While tax cuts and business incentives present growth opportunities, Medicaid rollbacks, SNAP reductions, and enforcement surges could destabilize vulnerable communities.
Square Accounting is committed to helping you understand these changes—and leverage them wisely. Whether you’re a small business owner, family planner, or nonprofit leader, our tax professionals are here to ensure you stay compliant, protected, and financially strong.
Contact Square Accounting
Schedule a consultation today to discuss how the One Big Beautiful Bill impacts your taxes, benefits, or business strategy.
Frequently Asked Questions (FAQ)
What is the One Big Beautiful Bill and how does it affect Florida?
The One Big Beautiful Bill (H.R. 1) is a sweeping federal law passed in July 2025. It extends tax cuts, slashes Medicaid and SNAP funding, and boosts immigration enforcement. For Florida, it means lower taxes for many residents and businesses—but also significant cuts to healthcare and food assistance programs.
Will Florida taxpayers save money under the One Big Beautiful Bill?
Yes, many Florida taxpayers—especially small business owners and retirees—will benefit from extended Trump-era tax cuts, including the 20% pass-through deduction and higher standard deductions for seniors. However, savings vary by income level.
How does the One Big Beautiful Bill change Medicaid in Florida?
The bill introduces mandatory 80-hour monthly work requirements for Medicaid recipients ages 19–64 starting in 2027. Florida could see hundreds of thousands of people lose coverage, particularly in rural and low-income areas.
What happens to SNAP (food stamp) benefits in Florida?
SNAP funding will be reduced, and beginning in 2028, Florida must cover up to 15% of program costs. This may lead to stricter eligibility checks and smaller benefits for vulnerable families across the state.
Is gender-affirming care still covered by Medicaid in Florida?
No. The One Big Beautiful Bill bans Medicaid and CHIP from covering any gender-affirming care, regardless of age. This affects trans and intersex individuals in Florida who rely on public health programs for hormone therapy or related services.
What tax changes should Florida small businesses know about?
Florida businesses can continue to deduct 20% of qualified income and expense 100% of certain investments immediately. The bill also enhances R&D tax credits and incentivizes domestic manufacturing.
How will the bill impact rural hospitals in Florida?
While a $50 billion rural health fund was created, it may not be enough to offset deep Medicaid cuts. Florida’s rural hospitals face increased financial risk, especially in underserved counties.
What enforcement changes will Florida see under the new law?
The bill significantly increases federal spending on border security and deportation. Florida is expected to see expanded ICE operations and detention infrastructure, impacting immigrant communities and local policy enforcement.
Is the One Big Beautiful Bill good or bad for Florida’s economy?
It depends. Tax cuts and business incentives may stimulate growth, but cuts to Medicaid, SNAP, and healthcare access could create instability for lower-income Floridians. Long-term effects will depend on how the state implements and responds to the law.
How can Square Accounting help me navigate these changes?
Square Accounting offers expert tax planning, business structuring, and benefits analysis tailored to Florida’s evolving regulatory landscape. We help families, entrepreneurs, and nonprofits understand and adapt to new laws like the One Big Beautiful Bill.
