President Trump's "One Big, Beautiful Bill" Has Passed: Here's What's Inside
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House Republicans made last-minute changes to their legislation, known as the "one big, beautiful bill," to gain support from different factions within the party. After an all-night session, the bill passed narrowly, 215-214, and will now go to the Senate for further amendments.
Here are the key points of the legislation:
1. Tax Cuts and Extensions:
The bill primarily extends President Trump's 2017 tax cuts, which are set to expire at the end of the year. It includes temporary tax exemptions for tips and overtime for service workers, deductions on auto loans for U.S.-made cars, and a temporary increase in the child tax credit. A new tax on remittances, now lowered to 3.5%, has also been added.
2. Medicaid Changes:
The legislation imposes work requirements for able-bodied adults without children to qualify for Medicaid, increases eligibility checks, and restricts funding for undocumented immigrants and gender transition services.
3. Increased SALT Deduction:
The cap on the State and Local Tax (SALT) deduction increases from $10,000 to $40,000 for households earning up to $500,000. This change aims to benefit middle-class homeowners, especially in high-tax states.
4. Border Security Funding:
The bill allocates significant funds for border security, including $46.5 billion for the border wall and additional resources for hiring Border Patrol agents. It also implements a $1,000 fee for asylum seekers.
5. Child Savings Accounts:
The legislation introduces "Trump accounts," which are $1,000 savings accounts for children born between 2024 and 2028, with additional annual contributions allowed by parents. Funds can be used for education or home purchases.
6. SNAP Restrictions:
The age limit for able-bodied adults without children to qualify for SNAP benefits would rise from 54 to 64, along with a shift of more costs to the states.
7. Rollback of Clean Energy Programs:
The bill rolls back some clean energy tax credits, requiring new renewable energy projects to begin construction quickly and imposing fees on electric and hybrid vehicles.
8. Debt Ceiling Increase:
To address an impending deadline, the bill raises the national debt ceiling by $4 trillion, allowing the government to meet its financial obligations without needing bipartisan support.
This bill represents a significant step in shaping President Trump's second-term agenda, with various provisions expected to spark debate in the Senate.