What’s Included in Trump’s 'Big' Tax and Immigration Bill That House Republicans Are Struggling to Pass
Speaker Mike Johnson Races to Rally Support Before a Crucial Wednesday Vote
Former President Donald Trump is pressing Republicans to advance his massive spending legislation, while also criticizing what he calls “grandstanders” holding up progress.
After meeting with House Republicans on Tuesday to discuss the proposed legislation—officially named the “One Big, Beautiful Bill Act”—Trump described the gathering as a “meeting of love” as he exited Capitol Hill.
The expansive bill aims to fulfill a broad array of Trump’s campaign vows, ranging from tax policy changes to ramped-up border protection. As GOP lawmakers continue negotiating final details, the bill remains under review by the nonpartisan Congressional Budget Office (CBO) and is expected to undergo significant revisions in the Senate.
Below is a breakdown of what the bill could mean for everyday Americans, based on early assessments:
Projected Impacts of the Legislation
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Potential Medicaid Losses: Over 8 million individuals may lose their Medicaid coverage, per estimates from a CBO analysis requested by House Democrats. Republicans assert the focus is on able-bodied adults and undocumented immigrants, though others may also be affected.
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SNAP Cuts: The bill proposes a reduction of approximately $230 billion in Supplemental Nutrition Assistance Program (SNAP) funding over ten years. This could narrow access to the program, which currently serves about 1 in 8 Americans monthly.
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2017 Tax Cuts Extension: The legislation seeks to extend tax cuts initially enacted under Trump in 2017.
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Tax Relief on Tips and Overtime: Delivers on Trump’s promise to eliminate federal taxes on tips and overtime pay.
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Border Wall Funding: Allocates $50 billion to restart construction on the southern border wall.
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Defense Investment: Includes about $150 billion in defense expenditures, covering shipbuilding and funding for the “Golden Dome” missile defense system.
Please note: The effects described above are based on early evaluations. The final bill text and CBO scoring are still in development and subject to change.
Revisions to Medicaid: Work Mandates and Eligibility Rules
According to Republican lawmakers, a core goal is reducing “waste, fraud, and abuse” in the Medicaid system to generate substantial savings over the next decade.
Democrats’ estimates suggest over 8 million people could be affected, although that figure is not final. The CBO has yet to release its official report, and the bill itself is still being adjusted.
Under current language, the bill enforces work requirements for able-bodied Medicaid recipients between the ages of 19 and 64, who have no dependents. These individuals would be required to work at least 80 hours per month.
States would also be required to reassess eligibility every six months for all Medicaid participants.
Additionally, the legislation would bar undocumented immigrants from Medicaid access—potentially removing coverage from around 1.4 million recipients, according to White House figures.
As written, these work mandates wouldn’t take effect until 2029, after Trump leaves office. However, some conservative lawmakers are lobbying to move that timeline forward to 2026 or 2027.
Other Medicaid changes include:
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Increased copays for individuals whose income exceeds the federal poverty level (around $15,500/year for singles). In some cases, an extra $35 copay would be charged.
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Enhanced documentation requirements for income and residency verification, intended to reduce double-enrollment across states. Critics warn this could disproportionately burden seniors and individuals who may struggle with paperwork demands.
Deep Cuts to SNAP Benefits
SNAP, formerly known as the food stamps program, helps tens of millions of low-income Americans purchase groceries. In 2024 alone, roughly 42 million people received monthly benefits.
Under the new bill:
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Adults aged 55–64 and even children would face additional work requirements to qualify.
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Starting in 2028, states would be required to cover at least 5% of SNAP costs, shifting part of the program’s funding burden from the federal government. Currently, the program is 100% federally funded.
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The proposed $230 billion in SNAP reductions could also affect school meal programs, forcing families to reapply for aid and altering federal reimbursement processes to school districts.
Tax Relief for Workers
A major campaign pledge from Trump is included: a tax exemption for tips and overtime earnings.
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Workers earning under $160,000 annually would be exempt from paying federal income taxes on tipped wages and overtime.
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This benefit would expire in 2028, shortly after the next presidential election.
Expanding and Cementing the 2017 Tax Cuts
The bill would make the Trump-era 2017 Tax Cuts and Jobs Act permanent, a move that some fiscal conservatives argue could add trillions to the national debt over the coming decade.
Notably:
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The proposal does not include any tax increases on high-income earners.
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Last week, Trump commented, “**The proposal shouldn’t raise taxes on the wealthy—**but I’m OK if they do!!!”
MAGA Savings Accounts for Children
A new initiative in the bill would introduce “MAGA Savings Accounts”:
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Parents would be allowed to contribute up to $5,000 per year per child.
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A pilot program would start each account with $1,000 as an initial deposit.
Raising the SALT Cap
Trump has frequently promised to eliminate the state and local tax (SALT) deduction cap, which was first imposed by his 2017 tax law.
The current version of the bill proposes:
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Raising the deduction limit from $10,000 to $30,000 for joint filers earning less than $400,000/year.
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Some House Republicans—particularly from high-tax states like New York and California—are advocating for an even higher limit.
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Hardline conservatives argue that raising the SALT cap will further inflate the deficit.
Border Security and Immigration Policy Overhaul
The bill outlines an aggressive strategy for immigration enforcement, including:
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$50 billion allocated to resume construction of the U.S.-Mexico border wall.
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$4 billion to hire 3,000 Border Patrol agents and 5,000 customs officers.
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$2.1 billion for signing and retention bonuses to secure staffing levels.
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10,000 new positions for Immigration and Customs Enforcement (ICE) officers and investigators.
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A first-ever $1,000 asylum application fee, marking a major change in U.S. asylum policy.
A Massive Debt Ceiling Increase
To accompany the spending proposals, the bill also seeks to raise the statutory debt ceiling by $4 trillion.
Treasury Secretary Scott Bessent has urged Congress to act before the end of July, warning of financial consequences if the borrowing limit is not increased in time.
Trump’s Push Meets Internal GOP Resistance
Despite Trump’s vocal push for unity, House Republicans remain deeply divided over aspects of the bill. Negotiations are ongoing as lawmakers seek to align the bill’s final provisions with both conservative demands and political realities.
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