As of January 2026, several significant federal changes from the Trump administration's "One Big Beautiful Bill" (OBBB) and various executive actions have officially taken effect.

By: Eye On Inglewood Staff Writer

www.eyeoninglewood.com

1. Federal Tax & Financial Changes No Federal Tax on Tips and Overtime:

Income earned from tips and overtime starting January 1, 2025, is now officially exempt from federal income tax in 2026. Workers can deduct up to $25,000 in cash and electronic tips.

Child Tax Credit Expansion: The credit has increased for 2026, allowing parents to receive tax credits for up to 50% of eligible childcare expenses, with caps rising to $3,000 for one child and $6,000 for two or more.

2. Clean Vehicle Credit Expirations:

As of 2026, several electric vehicle tax credits are no longer available, including the New Clean Vehicle Credit (30D), Used Clean Vehicle Credit (25E), and Qualified Commercial Clean Vehicle Credit (45W), all of which ended for acquisitions after September 30, 2025.

3. Education & Healthcare Student Loan Caps and Program Eliminations:

Effective July 2026, ParentPLUS loans are capped at $65,000 per student, and the GradPlus program is eliminated.

4. College Funding Restrictions:

Colleges may now be cut off from federal student loan programs if their graduates do not earn more than an average adult with only a high school diploma.

Pell Grant Expansion: Eligibility for Pell Grants has been expanded to include short-term job-training programs from accredited providers.

5. Higher Endowment Taxes:

Tax rates for private college endowments have shifted from a flat 1.4% to a tiered system reaching as high as 8% based on endowment size.

6. Immigration & National Security Expanded Travel Ban:

A presidential proclamation effective January 1, 2026, has modified and expanded the list of countries subject to entry restrictions.

7. Fentanyl Classification:

The HALT Fentanyl Act permanently classifies fentanyl-related substances as Schedule I controlled substances, triggering mandatory minimum prison terms for offenses. A related executive order designates fentanyl as a Weapon of Mass Destruction.

Southern Border Suspension: A standing order prohibits entry at the southern border for those deemed to be part of an "invasion" and requires all entrants to provide extensive medical and criminal history.

8. Technology & Regulation AI Safety and Transparency:

New protections for whistleblowers reporting AI-related safety risks take effect January 1, 2026.

9. Deregulation Mandate:

The administration’s "10-for-1" rule requires federal agencies to eliminate ten existing regulations for every one new regulation introduced.

10. 6G Wireless Race:

A December 2025 memorandum prioritizes federal resources for winning the global 6G technology race.