TUCSON, Ariz. (KVOA) – As the new year begins, several federal changes are now in effect, potentially impacting the finances of many Americans. These changes include adjustments to Social Security benefits, healthcare costs, and more.
Social Security recipients will see a 2.8% cost of living increase. However, Medicare Part B premiums are also rising by nearly $18 per month, one of the largest increases in the program’s history. With inflation factored in, some seniors might find themselves financially strained.
Cynthia Cox, Vice President and Director of the KFF Program on the Affordable Care Act, said, “We’re expecting that on average premium payments are going to more than double.” This increase comes as pandemic-era subsidies for Obamacare have ended.
This tax season marks the first with changes from a bill signed in July. It includes higher standard and SALT deductions, along with new breaks for seniors, car loan interest, tips, and overtime. David Urban, a Republican strategist, emphasized, “Those very important things that put more money in working class people’s pockets.”
Additionally, a proclamation issued Wednesday delays tariff hikes on some furniture, kitchen cabinets, and vanities that were supposed to start on January 1.
Lastly, President Trump’s travel ban has expanded to include 39 countries. Larry Madowo, an international correspondent for CNN, explained, “The American complaint is that these countries pose national security, national security and public safety threats to the United States.”
As these changes take effect, Americans are encouraged to review their finances to understand how they may be impacted.