The U.S. House of Representatives has passed a wide-ranging legislative package that includes significant changes to tax policy, federal benefit programs, and government spending. The final vote was 215 in favor and 214 against.
The legislation aims to balance various priorities within the majority party, from reducing the national deficit to adjusting tax policies to benefit constituents in high-tax states.
Key elements of the bill include an extension of the 2017 tax cuts, new work requirements for programs like Medicaid and SNAP, and an increase in the national debt limit.
Extensive intra-party negotiations preceded the vote. Former President Donald Trump expressed strong support for the bill, calling it a historic legislative achievement.
Highlights of the legislation:
Tax cuts: The bill proposes around $3.8 trillion in tax reductions, mainly by extending the 2017 tax cuts set to expire at the end of the year.
Temporary tax changes: Measures include eliminating taxes on overtime between 2026 and 2028, allowing deductions for interest on U.S.-made vehicle loans, and increasing the child tax credit to $2,500 until 2028. There’s also a proposed $4,000 additional deduction for seniors over 65, subject to income thresholds.
Medicaid reforms: Starting in late 2026, childless, non-disabled adults would need to work 80 hours per month to qualify. Enrollment would shift to biannual updates with additional income and residency checks.
SNAP modifications: The bill mandates work requirements for certain able-bodied adults without dependents and increases the state funding share. Some independent assessments suggest that these changes could reduce program participation.
SALT deduction adjustment: The cap on the state and local tax deduction would increase from $10,000 to $40,000 for married couples earning up to $500,000.
Debt ceiling increase: The bill includes a $4 trillion increase to the federal debt limit, allowing the government to meet existing financial obligations previously authorized by Congress.
While passage in the House represents a significant milestone, the legislation must now proceed to the Senate, where further scrutiny and modifications are expected.
