Trump’s Major Tax Bill Cleared by House: Key Details Revealed

WASHINGTON — In a significant development for President Donald Trump’s agenda, House Republicans passed a comprehensive legislative package early Thursday. This legislation, which combines tax cuts, spending reductions, and border security funding, marks a pivotal moment in shaping the party’s fiscal policies.

Titled the “One Big Beautiful Bill Act,” the extensive bill exceeds 1,000 pages. It came after months of deliberation within House committees. To secure passage, Republicans amended key provisions. This included increasing the state and local tax deduction, aimed at centrist party members, and tightening work requirements for Medicaid to address concerns over spending.

As the bill moves to the Senate, further adjustments are anticipated. A centerpiece of the package is a bid to make individual income and estate tax cuts from 2017 permanent. Additionally, Trump’s 2024 campaign promises are included, such as exempting tips and overtime pay from taxation.

To offset potential revenue losses, the bill proposes phasing out clean energy tax credits enacted under President Biden. The tax reforms are projected to cost around $3.8 trillion. Notably, the legislation raises the standard deduction temporarily: $1,000 for individuals and $2,000 for joint filers, effective through 2028.

Furthermore, the child tax credit would see a temporary increase to $2,500 between 2025 and 2028. The estate tax exemption would rise to $15 million and adjust for inflation. Notably, the controversial state and local tax (SALT) deduction cap would increase to $40,000 for lower-income brackets, gradually decreasing for higher earners over the next decade.

In a separate initiative, the bill imposes new work requirements for food assistance and Medicaid. Spending on the Supplemental Nutrition Assistance Program (SNAP) is set to decrease by $267 billion over ten years. Additionally, Republicans propose raising the work requirements age for food assistance from 54 to 64.

Similarly, Medicaid eligibility would incorporate new work engagement requirements, mandating 80 hours of activities per month for able-bodied adults. Critics argue that these changes could lead to millions losing health care coverage, with the Congressional Budget Office estimating approximately 8.6 million could be affected over the next decade.

The legislation also contains provisions eliminating a $200 tax on gun silencers, a move backed by the National Rifle Association. Conversely, it seeks to prevent Medicaid funding for Planned Parenthood, a decision opposed by Democrats who emphasize the importance of the organization’s health services.

Another notable feature of the bill is the establishment of “Trump” accounts, initially dubbed “MAGA” accounts. These savings accounts, aimed at children born between 2024 and 2028, would provide an initial $1,000 from the federal government, with parents able to contribute further funds for education and home purchases.

On immigration, the package proposes $46.5 billion for border security and includes a $1,000 application fee for asylum seekers. This plan aligns with measures to remove 1 million immigrants annually and house 100,000 individuals in detention facilities.

Additionally, nearly $150 billion would be allocated for the Defense Department, including funds earmarked for a proposed missile defense shield and other national security measures.

A comprehensive restructuring of the student loan program is also on the table, aiming for $330 billion in budget savings. Changes would replace existing repayment plans with two new options, and a tax increase on certain university endowments is anticipated.

This sweeping legislative package reflects House Republicans’ dedication to advancing Trump’s policy agenda, but its fate in the Senate remains uncertain.