Trump’s “Beautiful” 1,000-Page Bill: What’s Really Inside?
WASHINGTON (AP) — The House Republicans are nearing approval of
President Donald Trump’s
Tax incentives, reduced expenditures, and enhanced border control measures as Speaker Mike Johnson tries to push through the legislation despite united Democratic resistance by Memorial Day.
House committees have been working for months on the legislation, which spans over 1,000 pages and is named the “One Big Beautiful Bill Act,” a reference to Trump.
The rift within the GOP has diminished yet persists, with fiscal conservatives concerned that the legislation does not sufficiently limit Medicaid expenditures. Meanwhile, Republican lawmakers representing closely contested swing districts fear their voters might lose access to healthcare and nutritional support programs.
Democrats state they will oppose what House Democratic Leader Hakeem Jeffries refers to as “this extremist and harmful legislation.”
Here’s an overview of what has been included and excluded from the legislative package up until now:
Reductions in taxes for people and companies
Republicans aim to make the individual income and estate tax reductions from Trump’s initial term in 2017 permanent, along with implementing pledges he made during his 2024 campaign to avoid taxing tips, overtime pay, and interest on certain car loans.
In an effort to partly compensate for the reduced income, Republicans suggest eliminating or accelerating the phase-out of the clean energy tax incentives enacted under President Joe Biden’s tenure. This adjustment helps lower the total expense of the taxation segment to approximately $3.8 trillion.
The legislation features a provisional enhancement in the basic deduction—a $1,000 rise for single taxpayers, raising it to $16,000 for those filing individually, along with a $2,000 increment for married couples who file jointly, elevating their total to $32,000. This deduction lowers the portion of your income that will be taxed.
Additionally, there is a provisional boost of $500 in the child tax credit, raising it to $2,500 from 2025 until 2028. After this period, it will revert to $2,000 and adjust according to inflation adjustments.
The threshold for estate taxes increases to $15 million and will be adjusted for inflation moving ahead.
The most challenging issue during the talks has revolved around increasing the state and local tax deduction, which currently tops out at $10,000. This matter has been particularly important to representatives from New York. An initial deal has been struck to boost this “SALT” limit to $40,000 for individuals earning up to $500,000 annually, after which the cap would gradually decrease for higher earners.
Many of the measures Trump pledged during his campaign were intended to be provisional, effective throughout his time in office. The tax relief for tips, overtime, and auto loans will terminate by the end of 2028. Similarly, an additional $4,000 standard deduction for senior citizens will lapse at that same point.
Across different business tax clauses, small enterprises such as partnerships and S corporations can deduct 23% from their qualifying business income for taxation purposes. Previously, this deduction was set at 20%.
Companies will have the temporary option to immediately deduct all expenses related to domestic research and development activities undertaken during the year, as well as the costs associated with machinery, equipment, and other eligible assets. This incentive aims to motivate businesses to invest in measures that boost their productivity.
Parents and elderly individuals must meet work conditions to qualify for food aid.
The House Republicans aim to cut expenditures on food assistance, referred to as the Supplemental Nutrition and Assistance Program, by approximately $267 billion over a decade.
States would shoulder 5% of benefit costs, beginning in fiscal 2028, and 75% of the administrative costs. Currently, states pay none of the benefit and half of the administration costs.
Republicans are also broadening the work prerequisites for receiving food assistance. According to present legislation, able-bodied individuals without children have to meet these work conditions up to the age of 54; however, this threshold would shift to 64 under the proposed bill.
Additionally, certain parents who are presently excused from work obligations until their children reach 18 years old would now be subject to different conditions: they would only remain exempt if they are taking care of a dependent child younger than 7 years old.
And updated employment conditions for Medicaid
A focal point of
the package
is almost $700 billion in decreased expenditures from the Medicaid program, as estimated by the CBO.
In order to qualify for Medicaid, individuals must meet new “community involvement criteria,” which include engaging in at least 80 hours each month in employment, education, or community service. This mandate applies specifically to capable adults who do not have children dependent on them. These conditions will only take effect starting January 1, 2029, following President Trump’s term. Additionally, people would now need to confirm their eligibility for the program two times annually instead of just once.
Republicans aim to achieve savings through implementing new work requirements. However, Democrats caution that as a result, millions of Americans could lose their coverage.
According to an analysis by the non-partisan Congressional Budget Office, the proposed measures would lead to a decrease of at least 7.6 million individuals having healthcare coverage due to modifications in Medicaid, with potential additional reductions resulting from alterations to the Affordable Care Act.
No taxation on firearm suppressors, no funding for Planned Parenthood, and additional measures
Republicans are utilizing this package to benefit their supporters and undermine their political opponents.
This measure would remove a $200 tax on firearm suppressors which was established when Congress enacted the National Firearms Act back in 1934. The abolition of this tax enjoys support from the NRA.
The group Giffords, which works to reduce gun violence, said silencers make it more difficult to recognize the sound of gunfire and locate the source of gunshots, impairing the ability of law enforcement to respond to active shooters.
Republicans aim to prevent Medicaid funding from supporting Planned Parenthood, an organization that offers abortion services. Democrats argue that cutting off these funds would make it more difficult for millions of individuals to receive essential health services such as cancer screenings, Pap tests, and contraception.
‘Make America Great Again’ teens get $1,000 savings accounts
MAGA” stands for Trump’s catchphrase, “Make America Great Again.” However, here it represents “Monetary Advances for Growth and Advancement.
For parents or legal guardians opening new “MAGA” accounts for their children, the federal government will provide a one-time contribution of $1,000 for infants born from January 1, 2024, through December 31, 2028.
Households might contribute an additional $5,000 annually, with account owners not permitted to withdraw funds until they reach 18 years old. Subsequently, they would be able to use up to half of the amount for expenses related to further education, vocational training, or buying their first house. By the time the account holder turns 30, they gain unrestricted access to the entire sum within the account for whatever reason they choose.
Funding for Trump’s large-scale deportation initiative
The proposed law would allocate $46.5 billion to restart the building of Trump’s barrier along the U.S.-Mexico border, as well as additional funds for the deportation initiatives.
The budget includes $4 billion to employ an extra 3,000 new Border Patrol agents along with 5,000 new customs officers, and $2.1 billion allocated for sign-on and retention incentives. Additionally, funding has been set aside for hiring 10,000 more Immigration and Customs Enforcement officers and investigators.
This involves significant alterations to immigration rules, introducing a $1,000 charge for those applying for asylum — a measure the country has not previously implemented, aligning it closely with only a handful of nations like Australia and Iran.
In summary, the objective is to decrease immigration numbers to 1 million per year and accommodate 100,000 individuals in detention facilities.
More funds for the Pentagon and Trump’s ‘Golden Dome’
There’s also nearly
with $150 billion
for defense spending and national security initiatives.
This proposal includes $25 billion for Trump’s “Golden Dome for America,” an ambitious anti-missile system, $21 billion to replenish the country’s stock of ammunition, $34 billion to increase the size of the navy through additional ship construction, and around $5 billion for enhancing border security measures.
This amount also encompasses $9 billion for enhancing the quality of life for service members, covering areas such as housing, healthcare, and additional compensation.
Taxes on university endowments and a revamp of student loan system
A complete overhaul of the student loan program is essential for this legislation, offering
$330 billion in budget reductions and savings
.
This proposal aims to substitute all current student loan repayment options with only two choices: a basic plan where payments are distributed evenly across 10 to 25 years, and an “assistance” plan which typically offers fewer benefits compared to what it would supersede.
Among other changes, the bill would repeal Biden-era regulations that made it easier for borrowers to get loans canceled if their colleges defrauded them or closed suddenly.
Some university endowments could face a tax hike of up to 21%.
Increased drilling and mining activities on federal territories
To generate revenue,
one section
Would permit expanded leasing of public land for activities such as drilling, mining, and logging, while streamlining processes to facilitate greater development through faster governmental clearances.
Royalty rates paid by companies to extract oil, gas and coal would be cut, reversing Biden’s attempts to
curb fossil fuels
to help address climate change.
As an afterthought, Republicans added a clause permitting the sale of hundreds of thousands of acres of public land in Nevada and Utah, which sparked anger among Democrats and environmental groups.
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Collin Binkley and Mary Clare Jalonick from The Associated Press in Washington, along with Matthew Brown in Billings, Montana, provided contributions for this report.
Lisa Mascaro and Kevin Freking from The Associated Press