One, Big, Beautiful Bill Act: What Upstate New Yorkers Need to Know
In July 2025, Congress passed the One Big Beautiful Bill Act (“OBBBA”), one of the largest federal laws in recent memory. It impacts a huge range of issues, including: health care, taxes, retirement accounts, savings programs, business incentives, and more.
Families, seniors, farmers, and small business owners across Upstate New York may find that provisions under OBBBA will have a real impact on everyday planning, finances, and even the ability to pass on land and businesses to the next generation.
Below we will highlight the most important changes and explain what they could mean for you and your loved ones.
1. Medicaid & Health Care
More Frequent Check-ins: There are many types of Medicaid, including Medicaid for long-term care (“community based” Medicaid for home care and “chronic care” Medicaid for nursing home care). Nearly all Medicaid recipients are subject to renewals. Starting December 31, 2026, states can increase the frequency of Medicaid renewals from once a year to once every six (6) months. States typically first seek to renew using electronic data available to them, but many recipients are required to submit renewal paperwork. This increases the risk of lapses in coverage due to common delays in paperwork processing. If you or a loved one is receiving Medicaid, our office can assist with these renewals. Please promptly notify us if you receive a renewal form.
Work Requirements for Low Income Medicaid Health Care Coverage: Starting January 1, 2027, most adults receiving Medicaid for health care coverage who are under sixty-five (65) years of age may now need to prove they are working, volunteering, or in training for at least eighty (80) hours a month to remain eligible (this is the “community engagement” requirement). There are some mandatory exemptions, for example: pregnant women, those with serious medical conditions, parents of a dependent child under 13 years of age or parents with a dependent child with a disability.
Possible new New Costs in New York: OBBBA now mandates cost sharing (up to $35 per service) for MAGI Medicaid recipients (those who receive Medicaid due to low income status). Cost sharing between States, the federal government, and recipients is not new. However, the changes under OBBBA mandate more cost sharing from recipients and decreases funding to the States.
⛰️ Upstate NY Impact: These combined changes make it harder to qualify for Medicaid, and easier to lose Medicaid coverage for those already enrolled.
2. Seniors & Long-Term Care
Bigger Federal Deduction: Seniors aged 65 or older now get a more substantial standard deduction on their federal tax return — up to $6,000 per person (or $12,000 per couple) on top of the regular deduction. This new bonus applies for tax years 2025 through 2028 and builds on the existing “extra” senior deduction that already gave a small bump to older taxpayers.
Medicaid Funding Pressures: OBBBA caps how much states can reimburse nursing homes and home care agencies using federal Medicaid dollars and limits certain established funding tools New York has used to supplement provider payments. These changes may shrink federal support for long-term care, and may increase pressure on already-strained facilities, especially in rural parts of Upstate New York.
Insurance Considerations: With Medicaid rules tightening, you might want to consider Medicaid planning sooner rather than later (as this might allow your Medicaid Asset Protection Trust to be “grandfathered in.”) Or, you may want to explore long-term care insurance or hybrid life insurance policies (ideally far in advance of retirement or health issues).
Reduced Coverage of Unpaid Medical Bills: Starting January 1, 2027, the period of retroactive coverage of unpaid medical bills of a long-term care Medicaid recipient will be reduced to 60 days (from 90 days).
⛰️ Upstate NY Impact: Older adults across Upstate New York could see meaningful savings on their federal tax returns under the new law. At the same time, limits on federal Medicaid reimbursements may strain nursing homes and home care agencies — particularly in rural counties where access is already limited. For individuals or families relying on Medicaid coverage, lapses or delays in Medicaid could result in financial stress. Together, these changes highlight the importance of planning ahead for future care needs, exploring long-term care insurance options, and considering Medicaid planning strategies well before care becomes necessary.
As of September 1, 2025, New York State has begun implementing more restrictive “activities of daily living (ADL) standards” (used to measure functional ability to determine eligibility), making it more difficult for applicants to receive home care for which they previously would have been eligible. Be aware that New York State may implement a 2020 rule change that would require a thirty (30) month lookback period for Community Based Home Care Medicaid (while the rule change has been repeatedly postponed, it has not been retracted).
3. Taxes & Estates
Federal Estate Taxes: Individuals can now pass on more than $15 million per person in 2026 (over $30 million for married couples in 2026) to heirs through their estate without owing federal estate tax.
New York’s Estate Tax Cliff: New York’s threshold remains much lower — $7.16 million per individual in 2025. Go just a little over, and the entire estate can be taxed.
Retirement Accounts: If a child or other non-spouse inherits your IRA, they must begin withdrawals every year and empty the account within 10 years. For retirees, required minimum distributions (RMDs) now begin at age 73 years of age.
Income Tax Brackets: The current federal income tax rates (10% to 37%) are no longer set to expire — they’ll stay in place unless Congress changes them again. This provides families with more stability when planning for the future.
Extra Deduction for some Seniors: Seniors aged 65 or older with income under $75,000 ($150,000 for couples) can now claim an additional $6,000 deduction on their federal tax return through 2028.
“Trump Accounts”: A new savings account for kids offers $1,000 for newborns (2026–2028) and annual contributions until age 18, then converts into an IRA. Be aware the tax benefits are limited compared to Roth IRAs or 529 plans.
⛰️ Upstate NY Impact: While most families will not owe federal estate tax, many farms and small businesses in New York risk hitting the state’s lower threshold for NY State Estate Tax. Careful planning is needed to avoid surprise state-level estate taxes. If you are concerned about hitting the limit, contact us to review your current estate plan or to start planning. For Federal income taxes, seniors may see a reduction in taxes from a larger federal income tax deduction.
4. Overall Small Business Impacts
Lifetime Transfers: Higher federal exemptions make it easier to transfer land or business interests during life without paying federal gift tax — but New York’s 5 year Medicaid “look-back” period still applies. A 30 month look-back period for home care is likely to be implemented in the near future.
Click HERE to learn more about New York’s five-year lookback and planning for Medicaid Eligibility.
State & Local Tax Deductions: Families can now deduct up to $40,000 of state and local taxes on their federal return (up from the old $10,000 cap). For many New Yorkers, especially those with high property or income taxes, the higher deduction amount is still not enough to cover the full amount they pay. Certain business partnerships or S-corporations may consider utilizing New York State’s Pass-Through Entity Tax (PTET) election, which could result in a PTET credit on New York State income tax returns for partners, members or shareholders.
Small Business Stock Breaks: OBBBA tax benefits apply to certain C-corporation stock, allowing owners to exclude part — or even all — of the gain if they hold the stock for 3 to 5 years before selling.
Opportunity Zones: Special tax breaks continue for people who invest in designated “Opportunity Zone” areas. Under OBBBA provisions, there are added incentives for rural communities with fewer than 50,000 people. For Upstate New York, this could mean more investment flowing into local towns, farms, and small businesses, since many of our counties qualify as rural under these rules.
Business Write-offs: The federal deduction limit for buying business equipment has doubled to $2.5 million, and 100% bonus depreciation is back. This change allows businesses and farms to write off the full cost of new machinery in the year of purchase. However, New York does not follow this rule, so while federal taxes may drop in the first year, the same purchase must still be written off gradually on New York State returns.
Research Costs: Businesses can once again fully deduct domestic research and development expenses in the year they happen.
⛰️ Upstate NY impact: Business owners may benefit from new federal tax opportunities, but state rules (like the Medicaid look-back and estate tax cliff) mean timing and planning are everything. Rural communities may see new investment through Opportunity Zones, and farmers or business owners may benefit from larger deductions. But New York’s refusal to follow some federal rules (like bonus depreciation) means the savings may not be as large at the state level.
5. Farms and Agricultural Businesses
Higher Reference Prices for Key Crops: OBBBA raises the baseline “reference prices” used to calculate Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) payments. For example, corn’s reference price has increased to $4.42 per bushel, with similar boosts for soybeans, wheat, and cotton.
Automatic Coverage for 2025: For the 2025 crop year only, farmers will automatically receive whichever program (ARC-CO or PLC) offers the higher benefit—and no separate election is required.
Ongoing Escalation: Starting in 2031, reference prices will rise 0.5% per year (capped at 113% of the statutory price), providing gradual inflation protection for farm revenues.
Crop Insurance Improvements: Producers enrolled in ARC are now eligible to buy Supplemental Coverage Option (SCO) insurance, which had previously been available only to PLC participants. Premium discounts and new coverage tiers were added to make crop insurance more affordable and tailored to smaller or specialty operations.
Livestock & Specialty Crop Support: Livestock disaster assistance offers strengthened payment formulas and faster response triggers for federally declared disasters. Updated on-farm investment loan limits and interest structures now make it easier to finance grain bins, cold storage, or milk-handling upgrades.
⛰️ Upstate NY impact: For farmers across Upstate New York, these updates mean a slightly stronger safety net and more flexibility. Higher reference prices and expanded insurance options can help steady income when markets dip, but timing still matters—ARC and/or PLC payments often arrive a year later, and New York’s tax and depreciation rules don’t always match federal benefits. Careful coordination with your FSA office and tax advisor will help you capture the full advantage
Conclusion
The One Big Beautiful Bill Act reshapes much more than health care or Medicaid. It changes the rules for retirement accounts, taxes, business transfers, savings programs, and updates long-term farm safety-net programs, and more. Some of these changes create opportunities — like higher federal exemptions and expanded deductions. Others create new risks — like stricter Medicaid rules and a widening gap between federal estate tax limit and New York’s estate tax cliff.
The bottom line: planning ahead matters more than ever.
📝 Time for a Check-In?
Big changes like those in the One Big Beautiful Bill Act are a reminder that estate, business, and financial plans are never “set it and forget it.” Laws evolve, families change, and assets grow or shift.
It may be time to revisit your plan if:
Your estate documents pre-date 2021 and reference outdated formulas.
You’ve had major family changes (marriage, divorce, births, or deaths).
Your assets have grown or shifted (farm expansion, new business, property sales).
You’re unsure how OBBBA or New York’s estate tax cliff apply to you.
You want to confirm your trust provisions and beneficiary designations are still aligned.
You own farmland or a business and want to shield it from Medicaid spend-down or plan for smooth succession.
The Bottom Line
Reviewing your plan every few years — and especially after major federal or state law changes — is the best way to protect what you’ve built and ensure your plan still reflects your goals. At Harris-Pero Law, we can help you understand how these rules fit into your estate or business succession plan. And because these changes also affect taxes and investments, we encourage you to check in with your tax professional and financial advisor as part of the process.