Out-of-touch policies from Washington and Sacramento have left hardworking families in our community behind for far too long and made it harder to afford everyday essentials like groceries, gas and housing.

I’ve been pushing back and working hard on common-sense policies that would make life more affordable and combat rising living costs, tax hikes and persistent inflation.

That’s why I supported the historic funding package passed by Congress, which would deliver meaningful tax relief to working families in communities like ours.

I fought House leadership and the administration to increase the cap on deductions for state and local taxes, known as SALT, from $10,000 to $40,000 for middle class individuals, couples and families. This bill ensures families are not double taxed — putting more money back in their pockets.

The SALT cap increase I secured is welcome news for many working Californians and has been praised by firefighters, law enforcement, small-business owners and other hardworking Americans across the country. I also made sure we removed the SALT cap on deductions for certain small businesses. Without this provision, these small businesses would have seen a 2% tax increase.

In addition to increasing the SALT cap, the bill extends middle-class tax cuts that became law through the Tax Cuts and Jobs Act in 2017.

Without this extension, according to the House Ways and Means Committee, California’s 40th District would be at risk of a 17% tax hike on average. For a typical family of four earning the median income in our community, that would mean paying $3,930 more in taxes — roughly 19 weeks’ worth of groceries in Southern California.

For many families, the child tax credit would also have been cut in half, from $2,000 to $1,000 per child, if the middle-class tax cuts were not extended. Instead, the bill not only makes the child tax credit permanent but also increases the credit at $2,200 per child, lessening the financial burden that can come with raising a family.

According to the U.S. Chamber of Commerce, nearly 25,000 small and pass-through businesses across our district will see an increase of approximately $21,906,300 in their qualified business income deduction through the bill’s passage. This gives them the ability to expand their businesses, add jobs and create wealth right here in our community.

Additionally, this bill ensures Americans will not be taxed on tips or on overtime pay, and it allows seniors to take an additional $6,000 tax deduction to offset taxes on Social Security. These provisions are essential for the financial security of so many working Americans. The bill also makes historic investments in border security, our defense and our air traffic control system to boost shipbuilding capabilities, allow for safer and more efficient movement of aircraft in our skies, and ensure the brave men and women on the front lines have the tools to protect our nation’s freedoms.

There has been misinformation spreading about what this bill does, particularly regarding Medicaid. Let me be clear: This bill protects and strengthens Medicaid services for the most vulnerable American citizens who really need it, such as children, pregnant women, seniors and those with disabilities. In fact, Medicaid spending is projected to increase 20% over the next decade.

We must ensure Medicaid services go to those who need it. The bill also gives states the option to expand Medicaid home and community-based care services for people with developmental disabilities while ensuring those who are already eligible are not impacted.

The legislation also implements common-sense accountability measures for Medicaid. For example, if you’re an able-bodied adult between the ages of 19 and 64 who is currently on Medicaid, you simply must prove you’re working, volunteering or learning at least 20 hours each week. This means that an able-bodied adult must apply themselves for 20 hours a week, or for four hours per day, five days a week.

Since coming to Congress, making life more affordable has been my top priority. I remain focused on delivering real results that build upon what we have accomplished to make life more affordable for you and your family. The passage of this bill continues to move us in the right direction.

Young Kim represents California’s 40th Congressional District.