Big Changes and Big Opportunities: Navigating the Employee Benefits Provisions of the One Big Beautiful Bill Act

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBB) into law, introducing major changes to employee benefits and executive compensation. Key provisions include expanded deduction limits for executive pay, increased contribution limits for dependent care FSAs, permanent telehealth coverage under HSAs, and the creation of new Trump Accounts—tax-advantaged investment accounts for minors. The law also modifies fringe benefits, including enhanced credits for childcare and student loan repayment programs. Employers should promptly assess which changes apply to their plans and coordinate with internal and external stakeholders to ensure compliance.