One Big Beautiful Bill Act
BILL PASSES THE HOUSE AND ON ITS WAY TO PRESIDENT TRUMP DESK TO SIGN FOR JULY 4,2025
249th anniversary of the United States
7/3/25
What's in:
- A revision to the Medicaid provider tax, which includes a fund to aid states' efforts to improve health care access for rural residents,
- Tweaked language revoking Medicare eligibility for certain non-citizen immigrants.
- A tweaked provision to pass food aid costs on to states by forcing them to share expenses for the Supplemental Nutrition Assistance Program, or SNAP.
- A new version of the GOP proposal to hollow out funding for theConsumer Financial Protection Bureau.
- A Republican proposal to place what's now being branded a "temporary pause" on state laws regulating AI.
Yes, but: Sen. Marsha Blackburn (R-Tenn.) plans to offer an amendment to strike a temporary pause on states passing AI regulations.
- It is likely to be adopted, given that other Republicans, including Sens. Josh Hawley (R-Mo.) and Rand Paul (R-Ky.), also are unhappy with the measure.
What's out:
- A revised version of a new tax on the litigation finance industry proposed by Sen. Thom Tillis (R-NC), one of two Republicans firmly opposed to the bill. Tillis announced Sunday he would not seek reelection next year.
- A proposal making gun silencers more easily accessible.
- A school voucher program section intended to help subsidize private and religious schools.
- Provisions meant to block the use of Medicaid funds for gender-affirming care and to severely limit non-citizen immigrants from receiving Medicaid, Medicare and CHIP coverage.
- Proposed restrictions on the ability of federal courts to issue nationwide injunctions and temporary restraining orders.
- An effort to repeal an EPA rule limiting air pollution emissions of passenger vehicles.
- A provision allowing project developers to bypass judicial environmental reviews if they pay a fee.
- A modified version of the REINS Act, which would increase congressional power over major regulations. It was a top priority for Sen. Mike Lee (R-Utah) and Republican leadership.
- Language to expand state and local officers' ability to carry out immigration enforcement and limits on grant funding for "sanctuary cities."
Reconciliation bill provisions must be ruled budget-related for the passage threshold to be 51 instead of 60 votes.
Fiscal conservatives
Some conservatives have criticised the bill, saying it would inflate the country’s enormous debt.
The CBO estimated that the Senate version would raise the national debt by $3.3 trillion from 2025 to 2034. Under the House version, the CBO estimated a $2.4 trillion increase in the debt over a decade.
The current US national debt stands above $36 trillion and represents 122 percent of the country’s gross domestic product (GDP).
More than 71 million low-income Americans were enrolled in Medicaid for health insurance as of March.
Food stamp recipients
The Senate version of the bill proposes slashing the food stamps programme, called the Supplemental Nutrition Assistance Program (SNAP), by $68.6bn over a decade, according to an analysis by the nonpartisan Congressional Budget Office (CBO).
Food stamps help low-income families buy food. In the 2023 fiscal year, 42.1 million people per month benefitted from the programme, according to the US Department of Agriculture.
Medicaid beneficiaries
The Senate version of the bill proposes federal funding cuts by $930bn to Medicaid, the largest US programme providing healthcare to low-income people. These are cuts to budget outlays by 2034.
The bill says that starting in 2026, able-bodied adults below the age of 65 will be required to work 80 hours a month to continue to receive Medicaid, with the exception of those who have dependent children.
What’s next?
The bill now returns to the House of Representatives, which must debate and vote on it.
On May 22, the Republican-controlled House of Representatives passed an earlier version of the bill in a 215-214 vote.
That bill has been revised by the Senate, and both chambers of Congress must pass the same legislation for it to become law. Republicans hold 220 seats and Democrats hold 212 in the House.
If the compromise bill is passed, it would advance to Trump, who is expected to sign it into law.
Who would benefit from the bill?
The groups who would benefit include:
High-income households
The bill would extend tax cuts that Trump introduced during his first term. While he has pitched this as a gain for the American people, some will benefit more than others.
More than a third of the total cuts would go to households with an annual income of $460,000 or more. About 57 percent of the tax cuts would go to households with a yearly income of $217,000 or more.
According to an analysis by the nonpartisan Tax Policy Center, the Senate bill would slash taxes on average by about $2,600 per household in 2026. “High-income households would receive much more generous tax benefits,” its analysis said.
Families with children
If the bill does not pass, the child tax credit, currently at $2,000 per child per year, would drop to $1,000 in 2026.
However, if the current version of the Senate bill passes, the child tax credit will permanently increase to $2,200. This is a smaller increase than the $2,500 in the version of the bill that the House approved.
Traditional car manufacturers
Makers of traditional petrol-driven cars could benefit from the bill because the Senate version seeks to end the tax credit for purchases of electric vehicles (EVs), worth up to $7,500, starting on September 30.
This could decrease consumer demand for EVs, levelling the playing field for cars that run on petrol or diesel.
Workers who receive tips
Tips will not be taxed if the bill passes.
Currently, workers – whether waiters or other service providers – are required to report all tips in excess of $20 a month to their employers, and those additional earnings are taxed.
This bill would end that.
___________________
Federal income taxes
The One Big Beautiful Bill Act (OBBBA) makes permanent the lower tax brackets with revised income thresholds established by the TCJA.
OBBBA also makes the standard deduction, which was roughly doubled under the TCJA, permanent ahead of its scheduled expiration this year. The bill also increases the deduction by $750 for individuals, $1,500 for married couples, and $1,125 for a head of household, effective in the 2025 tax year. About 90% of federal taxpayers use the standard deduction rather than itemizing deductions.
OBBBA restores the immediate 100% expensing of capital investment that was temporarily permitted under the TCJA and applies it retroactively to investments made on or after Jan. 19, 2025, the day before President Trump's inauguration.
The provision for capital investment expensing is permanent under OBBBA, and the cap on the maximum a taxpayer can expense is increased to $2.5 million under the bill.
Small business deduction
OBBBA makes permanent the 20% deduction for small businesses, including sole proprietorships, partnerships and S corporations to deduct up to 20% of their qualified business income, plus 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income.
It would also create a new inflation-adjusted minimum deduction of $400 for taxpayers with at least $1,000 in qualified business income to ensure eligible small business owners can access an enhanced baseline deduction.
Retiree tax relief
OBBBA provides a $6,000 bonus deduction for taxpayers 65 and older on top of the standard deduction available to all taxpayers and in addition to the existing extra standard deduction of $2,000 for single filers and $1,600 per qualifying spouse for joint filers 65 and up.
- The $6,000 bonus deduction is temporary and would be in effect through 2028. It phases out for higher-income retirees, with the full deduction available to individuals with incomes up to $75,000 or $150,000 for joint filers. It phases out entirely for individuals earning over $175,000 and couples earning $250,000.
The provision was devised as an alternative to the proposal to eliminate taxes on Social Security benefits outright, instead offsetting some of what they owe based on their income levels.
Tips and overtime
While the bill stops short of fully eliminating federal income taxes on tipped income and overtime as discussed on the campaign trail, it does create new deductions that will provide relief to such workers through 2028, when they're set to expire.
Tipped workers such as restaurant servers, barbers and drivers would be able to deduct up to $25,000 in qualified tips.
Additionally, the bill creates an above-the-line income deduction for overtime premium payments of up to $12,500 for hourly workers who work overtime.
What's in:
- A revision to the Medicaid provider tax, which includes a fund to aid states' efforts to improve health care access for rural residents,
- Tweaked language revoking Medicare eligibility for certain non-citizen immigrants.
- A tweaked provision to pass food aid costs on to states by forcing them to share expenses for the Supplemental Nutrition Assistance Program, or SNAP.
- A new version of the GOP proposal to hollow out funding for theConsumer Financial Protection Bureau.
- A Republican proposal to place what's now being branded a "temporary pause" on state laws regulating AI.
Yes, but: Sen. Marsha Blackburn (R-Tenn.) plans to offer an amendment to strike a temporary pause on states passing AI regulations.
- It is likely to be adopted, given that other Republicans, including Sens. Josh Hawley (R-Mo.) and Rand Paul (R-Ky.), also are unhappy with the measure.
What's out:
- A revised version of a new tax on the litigation finance industry proposed by Sen. Thom Tillis (R-NC), one of two Republicans firmly opposed to the bill. Tillis announced Sunday he would not seek reelection next year.
- A proposal making gun silencers more easily accessible.
- A school voucher program section intended to help subsidize private and religious schools.
- Provisions meant to block the use of Medicaid funds for gender-affirming care and to severely limit non-citizen immigrants from receiving Medicaid, Medicare and CHIP coverage.
- Proposed restrictions on the ability of federal courts to issue nationwide injunctions and temporary restraining orders.
- An effort to repeal an EPA rule limiting air pollution emissions of passenger vehicles.
- A provision allowing project developers to bypass judicial environmental reviews if they pay a fee.
- A modified version of the REINS Act, which would increase congressional power over major regulations. It was a top priority for Sen. Mike Lee (R-Utah) and Republican leadership.
- Language to expand state and local officers' ability to carry out immigration enforcement and limits on grant funding for "sanctuary cities."
Reconciliation bill provisions must be ruled budget-related for the passage threshold to be 51 instead of 60 votes.
Fiscal conservatives
Some conservatives have criticised the bill, saying it would inflate the country’s enormous debt.
The CBO estimated that the Senate version would raise the national debt by $3.3 trillion from 2025 to 2034. Under the House version, the CBO estimated a $2.4 trillion increase in the debt over a decade.
The current US national debt stands above $36 trillion and represents 122 percent of the country’s gross domestic product (GDP).
More than 71 million low-income Americans were enrolled in Medicaid for health insurance as of March.
Food stamp recipients
The Senate version of the bill proposes slashing the food stamps programme, called the Supplemental Nutrition Assistance Program (SNAP), by $68.6bn over a decade, according to an analysis by the nonpartisan Congressional Budget Office (CBO).
Food stamps help low-income families buy food. In the 2023 fiscal year, 42.1 million people per month benefitted from the programme, according to the US Department of Agriculture.
Medicaid beneficiaries
The Senate version of the bill proposes federal funding cuts by $930bn to Medicaid, the largest US programme providing healthcare to low-income people. These are cuts to budget outlays by 2034.
The bill says that starting in 2026, able-bodied adults below the age of 65 will be required to work 80 hours a month to continue to receive Medicaid, with the exception of those who have dependent children.
What’s next?
The bill now returns to the House of Representatives, which must debate and vote on it.
On May 22, the Republican-controlled House of Representatives passed an earlier version of the bill in a 215-214 vote.
That bill has been revised by the Senate, and both chambers of Congress must pass the same legislation for it to become law. Republicans hold 220 seats and Democrats hold 212 in the House.
If the compromise bill is passed, it would advance to Trump, who is expected to sign it into law.
Who would benefit from the bill?
The groups who would benefit include:
High-income households
The bill would extend tax cuts that Trump introduced during his first term. While he has pitched this as a gain for the American people, some will benefit more than others.
More than a third of the total cuts would go to households with an annual income of $460,000 or more. About 57 percent of the tax cuts would go to households with a yearly income of $217,000 or more.
According to an analysis by the nonpartisan Tax Policy Center, the Senate bill would slash taxes on average by about $2,600 per household in 2026. “High-income households would receive much more generous tax benefits,” its analysis said.
Families with children
If the bill does not pass, the child tax credit, currently at $2,000 per child per year, would drop to $1,000 in 2026.
However, if the current version of the Senate bill passes, the child tax credit will permanently increase to $2,200. This is a smaller increase than the $2,500 in the version of the bill that the House approved.
Traditional car manufacturers
Makers of traditional petrol-driven cars could benefit from the bill because the Senate version seeks to end the tax credit for purchases of electric vehicles (EVs), worth up to $7,500, starting on September 30.
This could decrease consumer demand for EVs, levelling the playing field for cars that run on petrol or diesel.
Workers who receive tips
Tips will not be taxed if the bill passes.
Currently, workers – whether waiters or other service providers – are required to report all tips in excess of $20 a month to their employers, and those additional earnings are taxed.
This bill would end that.
6/27/25
ONE BIG BEAUTIFUL BILL ACT
_______
May 20, 2025.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed
_______
Mr. Arrington, from the Committee on Budget,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1]
The Committee on the Budget, to whom reconciliation
recommendations were submitted pursuant to title II of H. Con.
Res. 14, the concurrent resolution on the budget for fiscal
year 2025, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
Introduction by the Committee on the Budget
This legislation is the principal vehicle to advance
President Trump's America First agenda. - It delivers tax relief
for Americans- reforms entitlement programs to ensure they are
serving the most vulnerable,- keeps our nation safe, - and rolls back burdensome, expansive government regulations.
The gross federal debt is currently $36.2 trillion--121
percent of GDP.
According to the nonpartisan Congressional
Budget Office (CBO), it is projected to increase to $59.2 trillion in 2035--134.8 percent of GDP.
The fiscal year 2025
deficit is projected to be $1.9 trillion and CBO projects that
by 2035 the annual deficit will have grown to $2.5 trillion.
As the Nation's debt and deficits have grown so has
interest spending.
- Interest spending this year is estimated to be $952 billion or 3.2 percent of GDP and exceeds what we spend
each year on our military. CBO estimates that over the decade
interest spending will total $13.8 trillion and consume up to forty percent of all individual income taxes. These interest
payments provide no benefits and finance no government service
or operations. Instead, they divert resources from true needs.
Spending is also estimated to explode, from $7 trillion
annually in 2025 to $10.6 trillion in 2035. As a share of the
economy, future spending is estimated to average 24.9 percent
over the next thirty years, well above the historic average of
21.1 percent. Revenues, in contrast, increase as a percentage
of GDP, growing from the historical average of 17.3 percent to
an average of 18.6 percent over the next three decades.
Excessive spending, not insufficient revenue, explains the
surge in annual deficits.
The Concurrent Resolution on the Budget for Fiscal Year
2025, H. Con. Res. 14, provided the framework to implement
President Trump's America First agenda and reduce spending by
at least $1.5 trillion over fiscal years 2025 through 2034.
Pursuant to section 310 of the Congressional Budget Act of
1974, the Committee on the Budget binds together the
submissions from the 11 instructed authorizing committees,
without substantive revision, and reports the reconciliation
bill to the House of Representatives.
This reconciliation bill contains the legislative
recommendations marked up by the 11 authorizing committees of
the House of Representatives pursuant to the reconciliation
instructions included in H. Con. Res. 14, the Concurrent
Resolution on the Budget for Fiscal Year 2025. These
legislative recommendations were transmitted to the Committee
on the Budget. CBO has confirmed that ten of the eleven
submissions satisfied the instructions for the House
authorizing committees instructed in H. Con. Res. 14. Although
the House Committee on Armed Services exceeded its instruction,
the legislative recommendations transmitted by the House
Committee on Armed Services comply with the instruction given
to the Senate Committee on Armed Services in H. Con. Res. 14.Trump's plan to slash 'woke' foreign aid, NPR funds clears House as Senate battle looms
https://www.foxnews.com/politics/trumps-plan-slash-woke-foreign-aid-npr-funds-clears-house-senate-battle-looms
What’s inside the One Big Beautiful Bill Act?
The following provisions were all part of the original TCJA and would become a permanent part of the tax code if the House-passed Act is enacted with no changes.
- The 7 tax brackets as defined by the original 2017 TCJA with a top rate of 37% for higher earners and a bottom rate of 10% for lower earners will remain the same.
- The mortgage interest deduction would remain at its current limit of $750,000 in mortgage debt. It had been reduced from a threshold of $1 million of mortgage debt in 2017.
- The SALT deduction, capped at $10,000 for all filers in 2017, would increase to $40,000 ($20,000 for married people filing separate returns).
- The standard deduction, which doubled in 2017, would be made permanent, with a one-year inflation adjustment and a temporary increase of $1,000 for single filers and $2,000 for couples who are married filing jointly. For 2026 these amounts would be $16,200 for single filers and $32,600 for married filers.
- The lifetime gift and estate tax exclusions, which have more than doubled since 2017, would increase to $15 million for single filers from $13.99 million and to $30 million from $27.98 million for those who are married filing jointly. Going forward, the exclusions would be indexed to inflation.
- The Child Tax Credit (CTC) would increase by $500 to $2,500 until December 31, 2028 when it would revert to $2,000, but it would be indexed for inflation starting in 2026. The TCJA doubled the credit in 2017 from $1,000 and increased income phase-out thresholds to qualify for the credit. The increased income thresholds would also be maintained, as well as the credit for non-dependent children.
Find out more about this credit in Viewpoints: What is the Child Tax Credit?
- The repeal of the personal exemption deduction. Prior to TCJA, individuals who itemized could deduct up to $4,050 for themselves, a spouse, and each dependent. (While the personal deduction was repealed until December 31, 2025, the standard deduction and the CTC both doubled.) The personal exemption deduction will be eliminated permanently.
new saving account for parents
- Trump accounts. The bill proposes a savings account called the Trump account fundable up to $5,000 a year on an after-tax basis for children, so there is no upfront tax benefit. Contributions can be made by parents, relatives, or any other “taxable entity,” according to the legislation, until age 18, at which point half of the funds could be withdrawn and any gains would be taxed at the long-term capital gains tax rate, so long as the money is used for qualified expenses, which include education costs, the down payment on a first home, or as capital to start a small business. After age 30, the remainder of funds could be withdrawn for any purpose. Withdrawals would be taxed at ordinary income rates if spent for other purposes prior to age 30. Parents of newborns born between January 1, 2025, and January 1, 2028, would also qualify for $1,000 in federal seed money to start the account. Although not income restricted, Trump accounts are similar to Connecticut Baby Bonds, which invest $3,200 into accounts for newborns of lower income parents.
Also under consideration
- Expanded uses for health savings accounts (HSAs) and 529s. The bill would widen the types of health plans and participants eligible to use an HSA. It would also expand uses for an HSA for gym memberships and fitness reimbursement and allow participants in high-deductible health plans to receive services at on-site employer health clinics. Additionally, it would allow married couples who file taxes jointly to contribute catch-up contributions to the same HSA. Working seniors entitled to Medicare Part A and enrolled in a high-deductible health plan could also continue contributing to an HSA. The bill also proposes to expand uses of 529 funds to include things such as testing fees, tutoring outside the home, and educational therapies for students with disabilities, among other things. It would also allow for tax-free withdrawals for recognized postsecondary credential programs.
Learn more about spending from a 529 account.
Temporary provisions good for 4 years
In addition to the permanent provisions, the bill proposes numerous temporary deductions and credits good only for tax years 2025 through 2028. These are as follows.
No taxes on tips or overtime. The new tax bill would provide a temporary deduction for tipped income and hours worked in excess of a regular workweek hours for hourly employees. Tips would continue to be included in the base for FICA taxes (Social Security or Medicare tax).
An added senior tax deduction. People age 65 and older would get an additional $4,000 deduction per filer with modified adjusted gross income of $75,000 or less for single filers and $150,000 or less for married filers. Note: The enhanced deduction would be in addition to the $2,000 single filers and $3,200 married filers are currently able to deduct if they are 65 or older.
Deductible car loan interest. The tax bill allows for a deduction of up to $10,000 of loan interest for purchased vehicles whose final assembly took place in the US. The deduction would apply to single taxpayers with modified adjusted gross income of $100,000 or less ($200,000 or less for people who are married filing jointly).
What isn't in the One Big Beautiful Bill Act?
No taxes on Social Security. President Trump campaigned on eliminating taxes on Social Security benefits, which are taxable up to 85% for individuals with income of more than $34,000 or a couple with combined income of $44,000 or more. The $4,000 enhanced deduction for people who are 65 and older may help offset taxes on Social Security benefits for some individuals with income at these thresholds for the next 4 years.
Find out more about Social Security taxes in Viewpoints: Is Social Security taxable?
Keep info
For those that wanted a more comprehensive review of The One Big Beautiful Bill Act (H.R. 1), passed by the U.S. House on May 22, 2025, with a 215-214 vote and no Democratic support.
It is a sweeping budget reconciliation package delivering tax cuts, border security, and reforms for American families, farmers, and workers.
The Council of Economic Advisers estimates a 5% annual GDP increase, generating $4 trillion in additional revenue over 10 years, potentially making the bill deficit-neutral despite CBO projections of a $2.5-$5.1 trillion deficit increase, including $550 billion in interest costs.
Tax Relief for American Families and Workers
1. Historic Middle-Class Tax Cut: Permanently extends 2017 TCJA rates (10%, 12%, 22%, 24%, 32%, 35%, 37%), delivering up to $13,300 annual relief for families, $11,600 wage increases, and a 15% tax cut in 2025 for earners between $30,000-$80,000.
- No Tax on Tips: Above-the-line deduction for tip income (up to $160,000, inflation-adjusted) through 2028, boosting service workers’ pay.
- No Tax on Overtime Pay: Above-the-line deduction for overtime income (up to $160,000, inflation-adjusted) through 2028, supporting blue-collar workers.
- Car Loan Interest Deduction: Deduction up to $10,000 for interest on U.S.-made vehicle loans (2025-2028), phases out above $100,000/$200,000 income.
- Expanded Child Tax Credit (CTC): Increases CTC to $2,500 per child (2025-2028), then $2,000 with inflation adjustments, requires work-eligible SSNs.
- MAGA Savings Accounts for Children: $1,000 federal seed deposit for children born 2024-2028, $5,000 annual tax-free contributions, usable for education, home purchase, or at age 30.
- Standard Deduction Increase: Permanently raises standard deduction; adds $2,000 for joint filers, $1,500 for head of household, $1,000 for others (2025-2028).
- Tax Relief for Seniors: Adds $4,000 standard deduction for those 65+ (2025-2028), phases out at $150,000 (joint) or $75,000 (single). The cannot pass no tax on Social Security through the reconciliation process being used for this bill that only requires 51 Senate votes. That is why a $4,000 tax deduction was provided seniors. No tax on social security will require 60 Senate votes.
- Repeal of Alternative Minimum Tax (AMT): Eliminates AMT, simplifying taxes for high earners.
- Pass-Through Business Deduction: Increases Section 199A deduction to 23% from 20%, permanent, extends to business development company dividends.
- Bonus Depreciation: Extends 100% bonus depreciation, allows immediate R&D expensing, spurring investment.
- SALT Deduction Cap Adjustment: Raises SALT cap to $40,000 ($20,000 for married filing separately), phases out above $500,000 MAGI, permanent.
- SALT Denial for Professionals: Denies SALT deductions for pass-through entities in health, law, finance.
- HSA Expansion: Increases HSA contribution limits, extends eligibility to Medicare enrollees.
- Remittance Excise Tax: 3.5% tax on foreign remittances, refundable for valid SSN holders.
- Private University Endowment Tax: Tiered excise tax (up to 21%) for endowments over $2 million per student.
Protecting Family Farms and Small Businesses
17.Estate Tax Exemption Increase: Raises estate, gift, and generation-skipping tax exemption to $15 million (single), $30 million (married), inflation-adjusted, shielding family wealth.
- Major Tax Relief for Farmers: Prevents Biden-era estate tax cuts, delivers $10 billion in tax relief, saves 2 million family farms from forced sales.
- Farm Bill Modernization: Updates reference prices, provides $50 billion in crop insurance, $5 billion for trade promotion.
Border Security, Medicaid and Immigration Reform
- Border Security Overhaul: $46.5 billion for 701 miles of border wall, 18,000+ new ICE/CBP agents with pay raises, codifies Trump’s America First policies.
- Mass Deportation Funding: Authorizes 1 million deportations annually, $6.9 billion for detention (10,000 beds) and removal.
- Operation Lone Star Reimbursement: Funds Texas for border security costs.
- Visa and Immigration Fees: Visa integrity fee, increased employment authorization/diversity visa fees to fund enforcement.
- Unaccompanied Minors: Increases capacity for unaccompanied alien children by 2,000 beds.
Healthcare and Social Program Reforms
- Medicaid Protected for Americans: Ends Medicaid for 1.4 million non-citizens, imposes 80-hour monthly work requirements (2026), saves $987.8 billion, preserves coverage for seniors, veterans, needy.
- Medicaid Eligibility Restrictions: Limits to U.S. citizens, permanent residents, certain Cuban nationals, or Compact of Free Association individuals.
- Medicaid Home Value Cap: Excludes recipients with homes valued over $1 million.
- Medicaid Funding Restrictions: Prohibits funds to Planned Parenthood, gender transition therapies/procedures for minors and adults.
- ACA Premium Tax Credit Limits: Requires pre-enrollment verification, disallows credits for special enrollment based on income alone.
- SNAP Work Requirements: Extends work requirements to age 64, reduces state exemptions to 1%, saves $238.2 billion.
- SNAP Cost-Sharing: States cover 5% of benefits (2028), 75% of administrative costs.
- Standard Utility Allowance Limit: Restricts SNAP utility allowance to elderly/disabled households.
National Defense and Military Strength
- Military Pay and Benefits: Raises service member pay, expands housing, healthcare, family assistance.
- Golden Dome Missile Defense: $150 billion for Trump’s missile defense shield, rebuilds stockpiles, naval strength.
- Defense Enhancements: Funds shipbuilding, air superiority, munitions, nuclear deterrence, Pacific deterrence.
- Intelligence Operations: Increases funding for cyber, counter-terrorism.
Energy Independence and Natural Resources
- Restoring Energy Independence: Expands oil/gas leasing on 10 million acres, reverses methane fee, cuts green mandates.
- Public Land Sales: Authorizes Nevada/Utah land sales ($5 billion), funds $13 billion for water storage.
- Clean Energy Credit Phase-Out: Phases out clean electricity credits by 2031, repeals EV/residential credits post-2025.
Second Amendment and Deregulation
- Silencer Deregulation: Removes suppressors from National Firearms Act, eliminates $200 tax stamp, requires Form 4473 checks.
- AI Regulation Limits: Prohibits state AI regulations for 10 years, $10 billion for AI development.
- Free Tax Filing Website Elimination: Repeals government’s free tax filing program.
Infrastructure and Modernization
- Air Travel Modernization: $15 billion to overhaul air traffic control, improves safety, efficiency.
- Coast Guard Enhancements: $5 billion for new assets, including icebreakers.
45. Kennedy Center Funding: $7.2 million through 2029.
Education and Workforce Reforms
- Student Loan Reforms: Replaces SAVE plan, caps undergraduate loans at $57,500, prevents debt cancellation.
47. Pell Grant Changes: Reduces funding by $20 billion, introduces risk-sharing grants.
48. Federal Employee Reforms: Increases retirement contributions by 1%, eliminates FERS supplement, saves $40 billion.
Government Efficiency and Spending Cuts
- 1.6 Trillion Spending Cut: Largest mandatory cut in 30 years, eliminates DEI programs, climate handouts, bureaucratic waste, protects Medicare/Social Security.
51. Limits Rogue Federal Judges: Prohibits courts from enforcing contempt orders without bonds, curbing activist injunctions, restoring checks and balances.
52. FEHB Audit: Mandates audit of Federal Employees Health Benefits, saves $11 billion.
Financial and Regulatory Reforms
53. CFPB Funding Cap: Limits Consumer Financial Protection Bureau funding to $500 million annually, saves $3 billion.
54. PCAOB Fee Redirection: Redirects Public Company Accounting Oversight Board fees to Treasury, generates $1 billion.
55. Green Program Rescission: Cancels $1.2 billion in green retrofit programs, redirecting funds.
Economic and Fiscal Impact
• Council of Economic Advisers Estimate: 5% annual GDP growth, $4 trillion in additional revenue over 10 years, potentially making the bill deficit-neutral.
• CBO Estimate: $2.5-$5.1 trillion deficit increase, including $550 billion interest, due to tax cuts outweighing savings.
• Economic Growth: 5% GDP increase, 7 million new jobs, uplifting rural and working-class America.
Senate Outlook
The bill faces Senate challenges. Calls for no dilution underscore its America First priorities, but amendments are likely.
This bill delivers tax relief, border security, farm protections, Second Amendment victories, and major spending cuts, unanimously opposed by Democrats. With a projected 5% GDP growth generating $4 trillion, it may be deficit-neutral, now headed to the Senate.
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