In a narrow 215-214 vote, the U.S. House of Representatives has passed a sweeping tax and spending package, delivering a significant political victory to President Donald Trump and the Republican Party. The over 1,000-page legislation, dubbed the “One Big Beautiful Bill Act,” now heads to the Senate for further consideration.
This multi-faceted bill includes changes to federal tax policy, benefits programs like Medicaid and SNAP, and a hike in the national debt ceiling. While praised by Trump supporters, the legislation is also drawing criticism from Democrats and advocates for low-income Americans.
Key Features of the Bill
1. Social Security Tax Promise Falls Short
Although President Trump campaigned on eliminating taxes on Social Security income, the bill stops short of this. Instead, it increases the standard deduction by up to $4,000 for seniors over 65, applicable from 2025 to 2028. The deduction phases out for joint filers earning above $150,000 and individuals earning over $75,000.
2. New Medicaid Work and Verification Rules
To offset the cost of tax cuts, the bill introduces stricter Medicaid requirements. Beginning in December 2026, childless adults without disabilities must work at least 80 hours per month to qualify. Additionally, Medicaid re-enrollment will now occur every six months instead of annually, with stricter income and residency checks.
3. SALT Deduction Cap Raised
The controversial cap on state and local tax (SALT) deductions has been raised. Previously capped at $10,000 under the 2017 Trump-era tax law, the new bill increases the limit to $40,000 for married couples earning up to $500,000 — a move aimed at appeasing lawmakers from high-tax urban states.
4. Changes to SNAP Benefits
The Supplemental Nutrition Assistance Program (SNAP), which supports over 40 million Americans, will now require increased contributions from individual states. The bill also introduces new work requirements for childless, able-bodied SNAP recipients with no dependents.
5. Tax Relief for Tips and Overtime
Fulfilling another campaign promise, the bill eliminates federal taxes on tips and overtime pay. This is expected to benefit workers in the service and gig economies. Also included is a provision allowing Americans to deduct interest on car loans — but only for vehicles manufactured in the U.S.
6. Expanded Child Tax Credit
The child tax credit will rise from $2,000 to $2,500 through 2028. Eligibility is restricted to individuals with valid Social Security numbers.
7. Debt Ceiling Raised by $4 Trillion
A major component of the bill is the proposed $4 trillion increase in the national debt ceiling. This move is designed to allow the federal government to continue funding previously approved programs and obligations without disruption.
What Comes Next?
The bill now heads to the Senate, where lawmakers may seek to revise or block certain provisions. Several senators have already indicated potential amendments. Should any changes be made, the bill would return to the House for another vote.
President Trump has urged swift action:
“It’s time for our friends in the United States Senate to get to work and send this bill to my desk as soon as possible,” he posted on social media.
Democratic Pushback
Democrats have strongly opposed the legislation, criticizing the Medicaid and SNAP reforms as harmful to vulnerable populations. House Minority Leader Hakeem Jeffries labeled the bill a “reckless and regressive GOP tax scam,” vowing to challenge it ahead of the 2026 midterm elections.
As the Senate prepares to deliberate, Trump’s “big, beautiful bill” has become a flashpoint in the national debate over tax policy, federal spending, and social welfare. With sweeping changes in store, the legislation may shape America’s economic direction for years to come.
