Finance expert Dave Ramsey is known for his direct, even blunt, opinions on financial matters. On a recent episode of “The Ramsey Show,” he weighed in on President Donald Trump’s “One Big Beautiful Bill” (OBBB) to let his listeners know which provisions he thinks are great, and which ones he doesn’t like.
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Right out of the gate, Ramsey expressed how he has come to expect that there “are some things that are good and some things that are not good,” which he called, essentially, business-as-usual for “Washington.”
Here’s what did not like or found mediocre about the bill.
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The Bad: ‘Trump’ Child Investment Accounts
The bill creates “Trump Accounts” seeded with $1,000, which are ostensibly a type of tax-advantaged savings account, for children who are U.S. citizens born after Dec. 31, 2024, and before Jan. 1, 2029. Parents and family members can contribute up to $5,000 a year in after-tax dollars up until the child’s 17th year. Employers could also contribute up to $2,500 to an employee’s account, untaxed. Any parent can open an account for their child, but only those noted above will receive the $1,000.
While it sounds good in theory, once you get into the weeds, Ramsey called it little more than “a free thousand dollars.”
That’s because while some money can grow tax-deferred in these accounts, its stipulations make it less financially beneficial than 529 educational plans or Roth IRAs, with a steep 10% early withdrawal penalty before age 59 1/2.
Ramsey called it “useless” and dubbed it “Political BS.”
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The Bad: The Charitable Deduction
Ramsey was also underwhelmed by the changes to the charitable contribution limits, which state that as of 2026, taxpayers who claim the standard deduction can write off $1,000 for single filers and $2,000 for those who file jointly.
In a few words, Ramsey said dryly, “Whoopee. No big deal.”
The Mediocre: No Taxes on Tips/Overtime With Limitations
While he praised Trump for keeping his campaign promise on not taxing tips or overtime, and said that these provisions can help Americans, he acknowledged that each of these provisions has limitations.
Both provisions are capped by income levels, are only good for three years (up to 2028) and have other stipulations that Americans will need to look closely at before calling them a win.
The Mediocre: Small Change, Not One Big Bill
As for many of the other little changes, from allowing more expenses to qualify for either health savings account funds or 529 plan funds, auto loan interest deductions, additional senior deductions and more, Ramsey is unimpressed. “There’s no big beautiful thing in here,” he said. “It’s a bunch of nickel and dime things. Not anything in here that’s going to change your life.”
However, there were a couple of items that Ramsey pointed out as positives.
The Good: 2017 Tax Cuts Made Permanent
The best piece of the bill, Ramsey suggested, is the fact that it made permanent the 2017 tax cuts from the Tax Cuts and Jobs Act (TJCA). In particular, he was pleased that it “raised the standard deduction super high.”
For the vast majority of Americans who do not itemize their taxes, a bigger standard deduction means paying fewer taxes. In addition, the OBBB increased the standard deduction another $1,500 for 2025 and will continue to increase adjusted for inflation.
The Good: Medicaid Reduction
Ramsey voiced support for one of the more controversial provisions, which, by the end of 2026, requires those who do not have children under the age of 14 to document 80 hours of work (which can also be volunteering or training) per month, for able bodied adults to be able to keep their Medicaid benefits.
Ramsey said, “You have to be doing something to get this welfare.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 4 Things Dave Ramsey Does Not Like About Trump’s ‘Big Beautiful Bill’
