Following a late-night frenzy, President Trump’s ambitious second-term agenda—a “one big, beautiful bill”—passed the House by just one vote. House Republicans made some last-minute adjustments to appease everyone. The bill now goes to the Senate. But here’s a quick rundown on what this giant package contains and how it could impact you.
Tax cuts and new breaks
The bill’s core is extensions of Trump’s 2017 tax breaks, which were about to expire. The extensions—and some new loopholes—are the lion’s share of the bill’s price tag.
If you’re in the service industry, working at a restaurant, bar, or beauty shop, you may welcome the fact that tips will be exempt from taxes until 2028. The bill also temporarily repeals taxes on overtime payments to the end of 2028.
Got an American-made vehicle?
You could be able to deduct up to $10,000 in interest on your car loan. And parents will have a temporary boost of $500 to the child tax credit, to $2,500, through 2028.
Even a surprise change for gun owners: the bill eliminates the $200 tax on gun silencers that has been around since 1934.
A new tax on money sent abroad
The bill includes an added 3.5% tax on remittances—money that foreigners send back to relatives overseas. It’s down from the proposed 5%, but it’s still an added cost for a lot of immigrants who assist in supporting family members at home.
Medicaid work requirements
One of the bill’s most controversial elements is the transition of Medicaid. Non-disabled adults and young kids (under age 7) would need to satisfy work requirements to be eligible. These would be implemented by the close of 2026.
The bill also toughens eligibility screenings, reduces funding to states for serving undocumented immigrants, and bars coverage for gender transition procedures.
Higher deduction for state and local taxes (SALT)
Now you can only exclude no more than $10,000 of state and local taxes on your federal return. The limit will jump to $40,000 for married couples who earn up to $500,000—a big win for taxpayers living in high-tax states like California and New York.
Border security gets a boost
The bill spends significant money on border security—$46.5 billion on the wall, $4.1 billion to hire additional Border Patrol officers, and over $2 billion in retention bonuses to keep them. It also charges a $1,000 fee on asylum requests.
Highly recommended read: What is the GENIUS Act, the cryptocurrency regulation that has taken a step forward in the Senate and is closer to passing with Democratic…
“Trump accounts” for kids
New parents, take heed: if your kid is born between 2024 and 2028, the government will deposit $1,000 in a “Trump account” in his or her name. You can add up to $5,000 annually. Your child can use the money at age 18 to go to college, receive job training, or buy a first home.
Stricter food stamp rules
Childless adults aged 18-64 would subsequently be compelled to work to be eligible for food stamps—above the current 54-year upper limit. States would also have to pay a higher portion of the cost.
Reducing clean energy incentives
The bill curtails Biden-era clean energy policies. Tax incentives for renewable energy facilities would be phased in sooner, except for nuclear development.
Raising the debt ceiling
To avoid a financial crisis, the bill also includes a $4 trillion debt limit hike. This move enables Republicans to avoid negotiating with Democrats by bundling it as part of this larger package.
It’s a packed and contentious bill, and now everyone is waiting to see what changes are coming next in the Senate.
