From the Office of State Senator T. Travis Hackworth
Dear Friends and Neighbors,
I hope this letter finds you and your family well. I am writing to share an important update on a major piece of federal legislation recently passed in Washington, often affectionately called the “Big Beautiful Bill.”
Although this is federal policy, many of its provisions have a direct impact on working families, seniors, small businesses, and everyday citizens here in Southwest Virginia. I want to be sure you have a clear summary of what this legislation includes and how it could affect your household.
Highlights That Benefit Ordinary Americans
• No Tax on Tips & Overtime Pay:
Federal income taxes are now eliminated on tipped income up to $25,000 annually and overtime pay through 2028, providing tax relief to nearly 80 million hourly and tipped workers.
• Relief for Auto Buyers:
Families who purchase American-made vehicles can now deduct interest paid on auto loans, making transportation more affordable for all Americans.
• Permanent 2017 Tax Cuts:
This locks in tax cuts from 2017 that were set to expire, protecting Virginians from what would have been the largest tax increase in our nation’s history - some estimates at $4 trillion nationwide.
Middle-income households ($30,000–$80,000) will see about a 15% tax cut.
• Help for Seniors:
The standard deduction for seniors will rise by $6,000 for individuals earning up to $75,000 (or $150,000 for couples) through 2028, providing extra breathing room in retirement.
• Bigger Child Tax Credit:
The child tax credit is increasing to $2,200–$2,500 per child, depending on the final version, reducing tax burdens for working families.
• Newborn Savings Accounts:
Every newborn from 2025–2028 will receive a $1,000 investment account funded by the federal government, with parents able to contribute to the newborns account up to $5,000 annually, helping build future financial security for the next generation. This account will not be able to be accessed until they are 18 years old.
• Higher SALT Deduction:
The cap on state and local tax (SALT) deductions will rise from $10,000 to $40,000 for five years, benefiting many homeowners.
• Support for Small Businesses:
The bill makes 100% immediate expensing permanent, encouraging local businesses to invest and hire — projected to help secure over 7 million jobs nationwide.
Keeping Campaign Promises
This legislation also delivers on several national pledges and efficiency promises such as:
Completing ~700 additional miles of the border wall and expanding immigration enforcement. Elimination of Medicaid to 1.4 million undocumented immigrants.
Rolling back methane taxes and unlocking energy production on federal lands. Making America energy independent again.
Investing $153 billion to bolster national defense, shipbuilding, missile defense systems such as the Golden Dome.
Strengthening support for American farmers and increasing estate tax exemptions for family farms.
My Commitment to You
While these are federal issues they impact our constituents directly. Whether it’s increased take-home pay, higher deductions, or better support for small businesses, many families will see meaningful benefits.
I remain committed to communicating how changes impact our district, our seniors, and our low-income families.
As always, if my office can help you navigate state programs, please don’t hesitate to reach out. It’s my honor to serve you and our community.
May God bless you and your family, and may He continue to bless Southwest Virginia.
