The House passed the legislation in a 215–214 vote. It now heads to the Senate.
House Republicans passed the One Big Beautiful Bill Act to implement President Donald Trump’s agenda in an early morning session on May 22.
The legislative package, totaling more than 1,000 pages, wraps in provisions that touch almost every area of federal policy and spending, ranging from tax cuts to Medicaid to the border.
Though it makes spending cuts across several sectors of the federal government, the Congressional Budget Office (CBO) has projected the bill would add $3.8 trillion to the deficit over 10 years.
Following its approval by the House—which advanced the legislation in a 215–214 party-line vote—the bill now heads to the Senate for consideration.
Here’s what’s inside the megabill.
| Tax Cuts | SALT Deduction |
| Tax Hike on Endowments | Medicaid |
| States to Bear More of SNAP | Defense Boosted |
| Border Security and Immigration | Federal Pension Cuts |
| Clean Energy Tax Credits | Debt Limit |
Tax Cuts
Under the bill, the tax cuts included in the 2017 Tax Cuts and Jobs Act will be permanently extended, heading off a scheduled expiration at the end of the year.
Tax rates for the lowest income bracket will remain at 10 percent, gradually increasing to a 37 percent rate on top marginal earners. It also features additional tax breaks, such as a $2,000 increase to the standard deduction for joint filers, bringing it to $32,000 through 2028.
The legislation would also make earnings from overtime wages and tips tax-free, fulfilling a key promise made by Trump during the 2024 election. In addition, it allows for a temporary deduction of up to $10,000 in car loan interest payments for American-made automobiles.
It would also make the $2,000 child tax credit permanent and temporarily raise the limit to $2,500 per child through 2028.
According to the tax-writing House Ways and Means Committee, making the 2017 tax cuts permanent would protect the average taxpayer from a 22 percent tax increase and provide an extra $1,300 tax cut for the average family.
SALT Deduction
The State and Local Tax (SALT) deduction has been a thorny issue for House Speaker Mike Johnson (R-La.) and Republican lawmakers from blue states.
The original proposal included raising the SALT deduction limit from $10,000 to $30,000 for joint filers earning under $400,000.
Following a contentious debate, however, the SALT deduction is raised to $40,000 for people making less than $500,000 per year, starting in 2025.
By Joseph Lord, Lawrence Wilson, Andrew Moran and Ryan Morgan
