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In a razor-thin 215-214 vote, House Republicans passed a landmark piece of legislation Thursday that advances the core of President Donald Trump’s domestic agenda: trillions in tax cuts, tougher work requirements for safety net programs like Medicaid and SNAP, and a $4 trillion increase in the nation’s debt ceiling.
The 1,000+ page bill delivers on major conservative policy goals, but its passage came only after days of tense negotiations, including a high-stakes White House meeting between Trump, House Speaker Mike Johnson (R-La.), and skeptical GOP holdouts.
“Today the House has passed generational, truly nation-shaping legislation,” Johnson said after the vote, adding that Democrats opposed “lower taxes, stronger borders, and energy dominance.”
While House passage marks a milestone, the legislation faces steep hurdles in the Senate, where even some Republicans have raised concerns about the scale and scope of the changes.
What’s in the Bill:
💸 $3.8 Trillion in Tax Cuts
The bill extends the 2017 Trump tax cuts, which are set to expire at the end of this year, avoiding tax increases for most households. The cuts include:
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No federal tax on tips or overtime (2026–2028)
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Deductions for car loan interest (only for U.S.-made vehicles)
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Expanded child tax credit: $2,500 through 2028, then $2,000 with inflation indexing
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Higher standard deduction through 2028
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New $4,000 deduction for seniors (phased out for higher earners)
🏠 SALT Deduction Expansion
To appease blue-state Republicans, the bill raises the state and local tax (SALT) deduction cap from $10,000 to $40,000 for joint filers with incomes under $500,000 — a major win for lawmakers from high-tax states like New York and California.
🩺 Medicaid Overhaul
Medicaid, the health program for low-income Americans, faces major structural changes:
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New work requirements (80 hours/month for childless adults without disabilities starting in 2026)
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More frequent eligibility checks (every six months)
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Tighter income and residency verification
GOP leaders claim the changes would save hundreds of billions, but critics warn it may push millions off the rolls.
🥫 SNAP Work Rules
The Supplemental Nutrition Assistance Program (SNAP), which aids more than 40 million Americans, would see:
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State funding increases
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Mandatory work requirements for able-bodied adults without dependents
Analysts project millions could lose benefits, sparking concerns among moderate Republicans.
💳 Debt Ceiling Raised by $4 Trillion
The bill raises the U.S. borrowing limit by $4 trillion, a necessary move to avoid a catastrophic default. Treasury Secretary Scott Bessent warned that failure to act could exhaust government funds as early as August.
“Lifting the cap doesn’t authorize new spending,” Johnson emphasized. “It ensures the government can meet its obligations.”
What’s Next?
Though the bill fulfills key promises Trump made on the campaign trail — including not taxing tips, increasing child tax credits, and restoring SALT — its future in the Senate remains uncertain.
Senate Republicans have already flagged several elements as non-starters, from the scale of the tax cuts to the work requirements on essential welfare programs. Meanwhile, Democrats have vowed to block any legislation that slashes aid or imposes burdens on low-income Americans.
