tax break

WASHINGTON — Republicans muscled President Trump’s tax and spending cut bill through the House on Thursday, the final step necessary to get the bill to his desk by the GOP’s self-imposed deadline of July 4th.

At nearly 900 pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations.

Democrats united against the legislation, but were powerless to stop it as long as Republicans stayed united. The Senate passed the bill, with Vice President JD Vance casting the tiebreaking vote. The House passed an earlier iteration of the bill in May with just one vote to spare. It passed the final version 218-214.

Here’s what’s in the bill:

Tax cuts are the priority

Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump’s first term expire. The legislation contains about $4.5 trillion in tax cuts.

The existing tax rates and brackets would become permanent under the bill, solidifying the tax cuts approved in Trump’s first term.

It temporarily would add new tax deductions on tip, overtime and auto loans. There’s also a $6,000 deduction for older adults who earn no more than $75,000 a year, a nod to his pledge to end taxes on Social Security benefits.

It would boost the $2,000 child tax credit to $2,200. Millions of families at lower income levels would not get the full credit.

A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years. It’s a provision important to New York and other high tax states, though the House wanted it to last for 10 years.

There are scores of business-related tax cuts, including allowing businesses to immediately write off 100% of the cost of equipment and research. Proponents say this will boost economic growth.

The wealthiest households would see a $12,000 increase from the legislation, and the bill would cost the poorest people $1,600 a year, mainly due to reductions in Medicaid and food aid, according to the nonpartisan Congressional Budget Office analysis of the House’s version.

Money for deportations, a border wall and the Golden Dome

The bill would provide some $350 billion for Trump’s border and national security agenda, including for the U.S.-Mexico border wall and for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in U.S. history.

Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 signing bonuses and a surge of Border Patrol officers, as well. The goal is to deport some 1 million people per year.

To help pay for it, immigrants would face various new fees, including when seeking asylum protections.

For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security.

How to pay for it? Cuts to Medicaid and other programs

To help partly offset the lost tax revenue and new spending, Republicans aim to cut back on Medicaid and food assistance for people below the poverty line .

Republicans argue they are trying to right-size the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse.

The package includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older people up to age 65. Parents of children 14 and older would have to meet the program’s work requirements.

There’s also a proposed new $35 co-payment that can be charged to patients using Medicaid services.

More than 71 million people rely on Medicaid, which expanded under Obama’s Affordable Care Act, and 40 million use the Supplemental Nutrition Assistance Program. Most already work, according to analysts.

The Congressional Budget Office estimates that 11.8 million more Americans would become uninsured by 2034 if the bill became law and 3 million more would not qualify for food stamps, also known as SNAP benefits.

Republicans are looking to have states pick up some of the cost for SNAP benefits. Currently, the federal government funds all benefit costs. Under the bill, states beginning in 2028 will be required to contribute a set percentage of those costs if their payment error rate exceeds 6%. Payment errors include both underpayments and overpayments.

But the Senate bill temporarily delays the start date of that cost-sharing for states with the highest SNAP error rates. Alaska has the highest error rate in the nation at nearly 25%, according to Department of Agriculture data. Sen. Lisa Murkowsk (R-Alaska) had fought for the exception. She was a decisive vote in getting the bill through the Senate.

A ‘death sentence’ for clean energy?

Republicans are proposing to dramatically roll back tax breaks designed to boost clean energy projects fueled by renewable sources such as energy and wind. The tax breaks were a central component of President Biden’s 2022 landmark bill focused on addressing climate change and lowering health care costs.

Sen. Ron Wyden (D-Ore.) went so far as to call the GOP provisions a “death sentence for America’s wind and solar industries and an inevitable hike in utility bills.”

A tax break for people who buy new or used electric vehicles would expire on Sept. 30 of this year, instead of at the end of 2032 under current law.

Meanwhile, a tax credit for the production of critical materials will be expanded to include metallurgical coal used in steelmaking.

Trump savings accounts and so, so much more

A number of extra provisions reflect other GOP priorities.

The bill creates a new children’s savings program, called Trump Accounts, with a potential $1,000 deposit from the Treasury.

The Senate provided $40 million to establish Trump’s long-sought “National Garden of American Heroes.”

There’s a new excise tax on university endowments and a new tax on remittances, or transfers of money that people in the U.S. send abroad. The tax is equal to 1% of the transfer.

A $200 tax on gun silencers and short-barreled rifles and shotguns was eliminated.

One provision bars for one year Medicaid payments to family planning providers that provide abortions, namely Planned Parenthood.

Another section expands the Radiation Exposure Compensation Act, a hard-fought provision from GOP Sen. Josh Hawley of Missouri, for those impacted by nuclear development and testing.

Billions would go for the Artemis moon mission and for the exploration of Mars, while $88 million is earmarked for a pandemic response accountability committee.

Additionally, a provision would increase the nation’s debt limit, by $5 trillion, to allow continued borrowing to pay already accrued bills.

Last-minute changes

The Senate overwhelmingly revolted against a proposal meant to deter states from regulating artificial intelligence. Republican governors across the country asked for the moratorium to be removed and the Senate voted to do so with a resounding 99-1 vote.

A provision was thrown in at the final hours that will provide $10 billion annually to rural hospitals for five years, or $50 billion in total. The Senate bill had originally provided $25 billion for the program, but that number was upped to win over holdout GOP senators and a coalition of House Republicans warning that reduced Medicaid provider taxes would hurt rural hospitals.

The amended bill also stripped out a new tax on wind and solar projects that use a certain percentage of components from China.

What’s the final cost?

Altogether, the Congressional Budget Office projects that the bill would increase federal deficits over the next 10 years by nearly $3.3 trillion from 2025 to 2034.

Or not, depending on how one does the math.

Senate Republicans are proposing a unique strategy of not counting the existing tax breaks as a new cost because those breaks are already “current policy.” Republican senators say the Senate Budget Committee chairman has the authority to set the baseline for the preferred approach.

Under the alternative Senate GOP view, the bill would reduce deficits by almost half a trillion dollars over the coming decade, the CBO said.

Democrats say this is “magic math” that obscures the true costs of the tax breaks. Some nonpartisan groups worried about the country’s fiscal trajectory are siding with Democrats in that regard. The Committee for a Responsible Federal Budget says Senate Republicans were employing an “accounting gimmick that would make Enron executives blush.”

Freking and Mascaro write for the Associated Press.

WASHINGTON — Two-term Republican Sen. Thom Tillis of North Carolina said Sunday that he will not seek reelection next year, an abrupt announcement that came one day after he staked out his opposition to President Trump’s tax and spending package because of its reductions to healthcare programs.

His decision creates a political opportunity for Democrats seeking to bolster their numbers in the 2026 midterm elections, creating a wide-open Senate race in a state that has long been a contested battleground. It could also make Tillis a wild card in a party where few lawmakers are willing to risk Trump’s retribution by opposing his agenda or actions. Trump had already been threatening him with a primary challenge.

“In Washington over the last few years, it’s become increasingly evident that leaders who are willing to embrace bipartisanship, compromise, and demonstrate independent thinking are becoming an endangered species,” Tillis said in a lengthy statement Sunday.

Tillis, who would have been up for a third term in 2026, said he was proud of his career in public service but acknowledged the difficult political environment for those who buck their party and go it alone.

“I look forward to having the pure freedom to call the balls and strikes as I see fit and representing the great people of North Carolina to the best of my ability,” Tillis said in a statement.

Republicans hold a 53-47 edge in the Senate.

Trump, in social media posts, had berated Tillis for being one of two Republican senators who voted Saturday night against advancing the massive bill.

The Republican president accused Tillis of seeking publicity with his “no” vote and threatened to campaign against him next year. Trump also accused Tillis of doing nothing to help his constituents after last year’s devastating floods.

“Tillis is a talker and complainer, NOT A DOER,” Trump wrote.

The North Carolina Republican Party chairman, Jason Simmons, said the party wishes Tillis well and “will hold this seat for Republicans in 2026.”

Sen. Tim Scott of South Carolina, the chairman of the campaign arm for Senate Republicans, did not mention Tillis in a statement but said the party’s winning streak in North Carolina will continue. Scott noted that Trump won the state three times.

Democrats expressed confidence about their prospects.

Former Rep. Wiley Nickel, who announced his candidacy for the Senate seat in April, said he was ready for any Republican challenger.

“I’ve flipped a tough seat before and we’re going to do it again,” Nickel said in a statement.

Some said Tillis’ decision is another sign of the dramatic transformation of the Republican Party under Trump, with few lawmakers critical of the president or his agenda remaining in office.

It “proves there is no space within the Republican Party to dissent over taking healthcare away from 11.8 million people,” said Lauren French, spokesperson for the Senate Majority PAC, a political committee aligned with the chamber’s Democratic members.

Tillis rose to prominence in North Carolina when, as a second-term state House member, he quit his IBM consultant job and led the GOP’s recruitment and fundraising efforts in the chamber for the 2010 elections. Republicans won majorities in the House and Senate for the first time in 140 years.

Tillis was later elected as state House speaker and helped enact conservative policies on taxes, gun rights, regulations and abortion while serving in the role for four years. He also helped push a state constitutional referendum to ban same-sex marriage, which was approved by voters in 2012 but was ultimately struck down by the courts as unconstitutional.

In 2014, Tillis helped flip control of the U.S. Senate to the GOP after narrowly defeating Democratic Sen. Kay Hagan. During his more than a decade in office, he championed issues such as mental health and substance abuse recovery, Medicaid expansion and support for veterans.

As a more moderate Republican, Tillis became known for his willingness to work across the aisle on some issues. That got him into trouble with his party at times, notably in 2023 when North Carolina Republicans voted to censure him over several matters, including his challenges to certain immigration policies and his gun policy record.

“Sometimes those bipartisan initiatives got me into trouble with my own party,” Tillis said in his statement Sunday, “but I wouldn’t have changed a single one.”

Swenson writes for the Associated Press. AP writers Lisa Mascaro and Joey Cappelletti in Washington and Makiya Seminera in Raleigh, N.C., contributed to this report.

WASHINGTON — Senate Republicans on Monday proposed deeper Medicaid cuts, including new work requirements for parents of teens, as a way to offset the costs of making President Trump’s tax breaks more permanent in draft legislation unveiled for his “Big Beautiful Bill.”

The proposals from Republicans keep in place the current $10,000 deduction of state and local taxes, called SALT, drawing quick blowback from GOP lawmakers from New York and other high-tax states, who fought for a $40,000 cap in the House-passed bill. Senators insisted negotiations continue.

The Senate draft also enhances Trump’s proposed new tax break for seniors, with a bigger $6,000 deduction for low- to moderate-income senior households earning no more than $75,000 a year for singles, $150,000 for couples.

All told, the text unveiled by the Senate Finance Committee’s Republicans provides the most comprehensive look yet at changes the GOP senators want to make to the 1,000-page package approved by House Republicans last month. GOP leaders are pushing to fast-track the bill for a vote by Trump’s Fourth of July deadline.

Sen. Mike Crapo (R-Idaho), the chairman, said the proposal would prevent a tax hike and achieve “significant savings” by slashing green energy funds “and targeting waste, fraud and abuse.”

It comes as Americans broadly support levels of funding for popular safety net programs, according to the poll from the Associated Press-NORC Center for Public Affairs Research. Many Americans see Medicaid and food assistance programs as underfunded.

What’s in the “Big Beautiful Bill” so far

Trump’s “Big Beautiful Bill” is the centerpiece of his domestic policy agenda, a hodgepodge of GOP priorities that Republicans are trying to swiftly pass over unified opposition from Democrats — a tall order for the slow-moving Senate.

Fundamental to the package is the extension of some $4.5 trillion in tax breaks approved during his first term, in 2017, that are expiring this year if Congress fails to act. There are also new ones, including no taxes on tips, as well as more than $1 trillion in program cuts.

After the House passed its version, the nonpartisan Congressional Budget Office estimated the bill would add $2.4 trillion to the nation’s deficits over the decade, and leave 10.9 million more people without health insurance, due largely to the proposed new work requirements and other changes.

The biggest tax breaks, some $12,000 a year, would go to the wealthiest households, CBO said, while the poorest would see a tax hike of roughly $1,600. Middle-income households would see tax breaks of $500 to $1,000 a year, CBO said.

Both the House and Senate packages are eyeing a massive $350-billion buildup of Homeland Security and Pentagon funds, including some $175 billion for Trump’s mass deportation efforts, such as the hiring of 10,000 more officers for Immigration and Customs Enforcement, or ICE.

This comes as protests over deporting migrants have erupted nationwide — including the stunning handcuffing of Sen. Alex Padilla last week in Los Angeles — and as deficit hawks such as Kentucky Sen. Rand Paul are questioning the vast spending on Homeland Security.

Senate Democratic Leader Charles E. Schumer warned that the Senate GOP’s draft “cuts to Medicaid are deeper and more devastating than even the Republican House’s disaster of a bill.”

Trade-offs in bill risk GOP support

As the package now moves to the Senate, the changes to Medicaid, SALT and green energy programs are part of a series of trade-offs GOP leaders are making as they try to push the package to passage with their slim majorities, with almost no votes to spare.

But criticism of the Senate’s version came quickly after House Speaker Mike Johnson warned senators of making substantial changes.

“We have been crystal clear that the SALT deal we negotiated in good faith with the Speaker and the White House must remain in the final bill,” the co-chairs of the House SALT caucus, Reps. Young Kim (R-Calif.) and Andrew Garbarino (R-N.Y.), said in a joint statement Monday.

Republican Rep. Nicole Malliotakis of New York posted on X that the $10,000 cap in the Senate bill was not only insulting, but a “slap in the face to the Republican districts that delivered our majority and trifecta” with the White House.

Medicaid and green energy cuts

Some of the largest cost savings in the package come from the GOP plan to impose new work requirements on able-bodied single adults, ages 18 to 64 and without dependents, who receive Medicaid, the health care program used by 80 million Americans.

While the House first proposed the new Medicaid work requirement, it exempted parents with dependents. The Senate’s version broadens the requirement to include parents of children older than 14, as part of their effort to combat waste in the program and push personal responsibility.

Already, the Republicans had proposed expanding work requirements in the Supplemental Nutrition Assistance Program, known as SNAP, to include older Americans up to age 64 and parents of school-age children older than 10. The House had imposed the requirement on parents of children older than 7.

People would need to work 80 hours a month or be engaged in a community service program to qualify.

One Republican, Missouri Sen. Josh Hawley, has joined a few others pushing to save Medicaid from steep cuts — including to the so-called provider tax that almost all states levy on hospitals as a way to help fund their programs.

The Senate plan proposes phasing down that provider tax, which is now up to 6%. Starting in 2027, the Senate looks to gradually lower that threshold until it reaches 3.5% in 2031, with exceptions for nursing homes and intermediate care facilities.

Hawley slammed the Senate bill’s changes on the provider tax. “This needs a lot of work. It’s really concerning and I’m really surprised by it,” he said. “Rural hospitals are going to be in bad shape.”

The Senate also keeps in place the House’s proposed new $35-per-service co-pay imposed on some Medicaid patients who earn more than the poverty line, which is about $32,000 a year for a family of four, with exceptions for some primary, prenatal, pediatric and emergency room care.

And Senate Republicans are seeking a slower phaseout of some Biden-era green energy tax breaks to allow continued develop of wind, solar and other projects that the most conservative Republicans in Congress want to end more quickly. Tax breaks for electric vehicles would be immediately eliminated.

Conservative Republicans say the cuts overall don’t go far enough, and they oppose the bill’s provision to raise the national debt limit by $5 trillion to allow more borrowing to pay the bills.

“We’ve got a ways to go on this one,” said Sen. Ron Johnson (R-Wis.).

Mascaro and Freking write for the Associated Press. AP writers Mary Clare Jalonick and Matthew Daly contributed to this report.

WASHINGTON — President Trump wants his “big, beautiful” bill of tax breaks and spending cuts on his desk to be signed into law by the Fourth of July, and he’s pushing the slow-rolling Senate to make it happen sooner rather than later.

Trump met with Senate Majority Leader John Thune at the White House early this week and has been dialing senators for one-on-one chats, using both the carrot and stick to nudge, badger and encourage them to act. But it’s still a long road ahead for the 1,000-page-plus package.

“His question to me was, How do you think the bill’s going to go in the Senate?” Sen. Josh Hawley (R-Mo.) said about his call with Trump. “Do you think there’s going to be problems?”

It’s a potentially tumultuous three-week sprint for senators preparing to put their own imprint on the massive Republican package that cleared the House late last month by a single vote. The senators have been meeting for weeks behind closed doors, including as they returned to Washington late Monday, to revise the package ahead of what is expected to be a similarly narrow vote in the Senate.

“Passing THE ONE, BIG, BEAUTIFUL BILL is a Historic Opportunity to turn our Country around,” Trump posted on social media. He urged them Monday “to work as fast as they can to get this Bill to MY DESK before the Fourth of JULY.”

Thune, like House Speaker Mike Johnson, has few votes to spare from the Senate’s slim, 53-seat GOP majority. Democrats are waging an all-out political assault on GOP proposals to cut Medicaid, food stamps and green energy investments to help pay for more than $4.5 trillion in tax cuts — with many lawmakers being hammered at boisterous town halls back home.

“It’d be nice if we could have everybody on board to do it, but, you know, individual members are going to stake out their positions,” Thune said Tuesday.

“But in the end, we have to succeed. Failure’s not an option. We’ve got to get to 51. So we’ll figure out the path forward to do that over the next couple of weeks.”

At its core, the package seeks to extend the tax cuts approved in 2017, during Trump’s first term at the White House, and add new ones the president campaigned on, including no taxes on tips and others. It also includes a massive build-up of $350 billion for border security, deportations and national security.

To defray the lost tax revenue to the government and avoid piling onto the nation’s $36-trillion debt load, Republicans want to reduce federal spending by imposing work requirements for some Americans who rely on government safety net services. Estimates are 8.6 million people would no longer have healthcare and nearly 4 million would lose Supplemental Nutritional Assistance Program benefits.

The package also would raise the nation’s debt limit by $4 trillion to allow more borrowing to pay the bills.

Senate Democratic Leader Chuck Schumer said Trump’s bill “is ugly to its very core.”

Schumer said Tuesday it’s a “lie” that the cuts won’t hurt Americans. “Behind the smoke and mirrors lies a cruel and draconian truth: tax breaks for the ultra-wealthy paid for by gutting healthcare for millions of Americans,” said the New York senator.

The nonpartisan Congressional Budget Office is expected to soon provide an overall analysis of the package’s impacts on the government balance sheets, particular its rising annual deficits. But Republicans are ready to blast those findings from the congressional scorekeeper as flawed.

Trump on Tuesday switched to tougher tactics, deriding the holdout Republican senators to get on board.

The president laid into Kentucky Sen. Rand Paul, the libertarian-leaning deficit hawk who has made a career of arguing against government spending. Paul wants the package’s $4-trillion increase to the debt ceiling out of the bill.

“Rand votes NO on everything, but never has any practical or constructive ideas. His ideas are actually crazy (losers!).” Trump posted.

The July 4 deadline is not only aspirational for the president, it’s all but mandatory for his Treasury Department. Treasury Secretary Scott Bessent has warned Congress that the nation will run out of money to pay its bills if the debt ceiling, now at $36 trillion, is not lifted by mid-July or early August to allow more borrowing. Bessent has also been meeting behind closed doors with senators and GOP leadership.

Thune acknowledged Tuesday that lifting the debt ceiling is not up for debate.

“It’s got to be done,” the South Dakota senator said.

The road ahead is also a test for Thune, who, like Johnson, is a newer leader in Congress and among the many Republicans adjusting their own priorities with Trump’s return to the White House.

While Johnson has warned against massive changes to the package, Thune faces demands from his senators for adjustments.

To make most of the tax cuts permanent — particularly the business tax breaks that are the Senate priorities — senators may shave some of Trump’s proposed new tax breaks on automobile loans or overtime pay, which are policies less prized by some senators.

There are also discussions about altering the $40,000 cap that the House proposed for state and local deductions, known as SALT, which are important to lawmakers in high-tax New York, California and other states, but less so among GOP senators.

“We’re having all those discussions,” said Sen. Thom Tillis (R-N.C.), another key voice in the debate.

Hawley is among a group of senators, including Maine’s Susan Collins and Alaska’s Lisa Murkowski, who have raised concerns about the Medicaid changes that could boot people from health insurance.

A potential copay of up to $35 for Medicaid services that was part of the House package, as well as a termination of a provider tax that many states rely on to help fund rural hospitals, have also raised concerns.

“The best way to not be accused of cutting Medicaid is to not cut Medicaid,” Hawley said.

Collins said she is reviewing the details.

There’s also a House provision that would allow the auction of spectrum bandwidth that some senators oppose.

Mascaro and Jalonick write for the Associated Press. AP writer Matt Brown contributed to this report.

WASHINGTON — In a massive setback, House Republicans failed Friday to push their big package of tax breaks and spending cuts through the Budget Committee, as a handful of conservatives joined all Democrats in a stunning vote against it.

The hard-right lawmakers are insisting on steeper spending cuts to Medicaid and the Biden-era green energy tax breaks, among other changes, before they will give their support to President Trump’s “big beautiful bill.” They warn the tax cuts alone would pile onto the nation’s $36-trillion debt.

The failed vote, 16-21, stalls, for now, House Speaker Mike Johnson’s push to have the package approved next week. But the holdout lawmakers vowed to stay all weekend to negotiate changes as the president is returning to Washington from the Middle East.

“Something needs to change or you’re not going to get my support,” said Rep. Chip Roy (R-Texas).

Tallying a whopping 1,116 pages, the One Big Beautiful Bill Act, named with a nod to Trump, is teetering at a critical moment. Conservatives are holding out for steeper cuts to Medicaid and other programs to help offset the costs of the tax breaks. But at the same time, lawmakers from high-tax states including New York and California are demanding a deeper tax deduction, known as SALT, for their constituents.

Johnson has insisted Republicans are on track to pass the bill, which he believes will inject a dose of stability into a wavering economy.

Democrats slammed the package, but they will be powerless to stop it if Republicans are united. They emphasized that millions of people would lose their health coverage if the bill passes while the wealthiest Americans would reap enormous tax cuts. They also said it would increase future deficits.

“That is bad economics. It is unconscionable,” said Rep. Brendan Boyle of Pennsylvania, the top Democratic lawmaker on the panel.

The Budget panel is one of the final stops before the package is sent to the full House floor for a vote, which is expected as soon as next week. Typically, the job of the Budget Committee is more administrative as it compiles the work of 11 committees that drew up various parts of the big bill.

But Friday’s meeting proved momentous. Republicans hold a slim majority in the House and have just a few votes to spare to advance the measure, including on the Budget Committee.

Four Republican conservatives initially voted against the package — Roy and Reps. Ralph Norman of South Carolina, Josh Brecheen of Oklahoma and Andrew Clyde of Georgia. Then one, Rep. Lloyd Smucker of Pennsylvania, switched his vote to no.

The conservative holdouts from the Freedom Caucus are insisting on deeper cuts — particularly to Medicaid. They want new work requirements for aid recipients to start immediately, rather than on Jan. 1, 2029, as the package proposes.

Roy complained that the legislation front-loads new tax cuts and spending while back-loading the savings.

“We are writing checks we cannot cash, and our children are going to pay the price,” Roy said.

“Sadly,” added Norman, “I’m a hard no until we get this ironed out.”

At the same time, the New Yorkers have been unrelenting in their demand for a much larger SALT deduction than what is proposed in the bill, which could send the overall cost of the package skyrocketing.

As it stands, the bill proposes tripling what’s currently a $10,000 cap on the state and local tax deduction, increasing it to $30,000 for joint filers with incomes up to $400,000 a year.

Rep. Nick LaLota, one of the New York lawmakers leading the SALT effort, said they have proposed a deduction of $62,000 for single filers and $124,000 for joint filers.

The conservatives and the New Yorkers are at odds, each jockeying for their priorities as Johnson labors to keep the package on track to pass the House by Memorial Day and then onto the Senate.

“This is always what happens when you have a big bill like this,” said Majority Leader Steve Scalise (R-La.). “There’s always final details to work out all the way up until the last minute. So we’re going to keep working. There’s a lot of work to be done.”

At its core, the sprawling package extends the existing income tax cuts that were approved during Trump’s first term, in 2017, and adds new ones that the president campaigned on in 2024, including no taxes on tips, overtime pay and some auto loans.

It increases some tax breaks for middle-income earners, including a bolstered standard deduction of $32,000 for joint filers and a temporary $500 boost to the child tax credit, bringing it to $2,500.

It also provides an infusion of $350 billion for Trump’s deportation agenda and to bolster the Pentagon.

To offset more than $5 million in lost revenue, the package proposes rolling back other tax breaks, namely the green energy tax credits approved as part of President Biden’s Inflation Reduction Act. Some conservatives want those to end immediately.

The package also seeks to cover the costs by slashing more than $1 trillion from healthcare and food assistance programs over the course of a decade, in part by imposing work requirements on able-bodied adults.

Certain Medicaid recipients would need to engage in 80 hours a month of work or other community options to receive healthcare. Older Americans receiving food aid through the Supplemental Nutrition Assistance Program, known as SNAP, would also see the program’s current work requirement for able-bodied participants without dependents extended to include those ages 55-64. States would also be required to shoulder a greater share of the program’s cost.

The nonpartisan Congressional Budget Office estimates at least 7.6 million fewer people with health insurance and about 3 million a month fewer SNAP recipients with the changes.

Mocking the name of the bill, Rep. Pramila Jayapal (D-Wash.) called it “one big, beautiful betrayal.”

“To pay for it,” Democratic Rep. Morgan McGarvey said, “kids in Kentucky will go hungry, nursing homes and hospitals will close, and millions of Americans will be kicked off their health insurance. It’s wrong.”

Mascaro and Freking write for the Associated Press. AP writer Leah Askarinam contributed to this report.

WASHINGTON — House Republicans proposed sweeping tax breaks Monday in President Trump’s big priority bill, tallying at least $4.9 trillion in costs so far, partly paid for with cuts to Medicaid, food stamps and green energy programs used by millions of Americans.

The House Ways and Means Committee named its package “THE ONE, BIG, BEAUTIFUL BILL” in all capital letters, a nod to Trump himself. It seeks to extend the tax breaks approved during Trump’s first term — and boost the standard deduction, child tax credit and estate tax exemption — while adding new tax breaks on tipped wages, overtime pay, Social Security benefits and auto loans that Trump promised during his campaign for the White House.

There’s also a tripling of the state and local tax deduction, called SALT, from $10,000 up to $30,000 for couples, which certain high-tax state GOP lawmakers from New York and California already rejected as too meager. Private universities would be hit with a hefty new tax on their endowments, as much as 21%, as the Trump administration goes after the Ivy League and other campuses. And one unusual provision would terminate the tax-exempt status of groups the State Department says support “terrorists,” which civil society advocates warn is a way to potentially punish those at odds with the Trump administration.

Overall, the package is touching off the biggest political debate over taxes, spending and the nation’s priorities in nearly a decade. Not since 2017 has Congress wrestled with legislation as this, when Republicans approved the Trump tax cuts but also failed to repeal and replace the Affordable Care Act, or Obamacare. The cost assessments are only preliminary, and expected to soar.

“Republicans need to UNIFY,” Trump posted on social media before departing for a trip to the Middle East.

Trump said when he returns to Washington, “we will work together on any and all outstanding issues, but there shouldn’t be many — The Bill is GREAT. We have no alternative, WE MUST WIN!”

But one key Republican, Sen. Josh Hawley of Missouri, implored his party not to impair Medicaid, arguing that cutting healthcare to pay for tax breaks is both “morally wrong and politically suicidal.”

“If Republicans want to be a working-class party — if we want to be a majority party — we must ignore calls to cut Medicaid and start delivering on America’s promise for America’s working people,” Hawley wrote in the New York Times.

Late Monday, the House Agriculture Committee released its proposals — cutting $290 billion from federal nutrition programs, in part by shifting costs to the states and requiring able-bodied adults without dependents to fulfill work requirements until they are 64 years old, rather than 54, to qualify for food aid.

Round-the-clock work ahead

As Republicans race toward House Speaker Mike Johnson’s Memorial Day deadline to pass Trump’s big bill, they are preparing to flood the zone with round-the-clock public hearings starting Tuesday and stitch the various sections together in what will become a massive package.

The politics ahead are uncertain. The bipartisan Joint Committee on Taxation said Monday that tax breaks would reduce revenue by $4.9 trillion over the decade — and that was before Trump’s new tax breaks were included.

Texas Rep. Chip Roy, a member of the conservative House Freedom Caucus, warned the price tag could climb to $20 trillion, piling onto the deficits and debt.

“I sure hope House & Senate leadership are coming up with a backup plan,” Roy posted on social media, “…. because I’m not here to rack up an additional $20 trillion in debt over 10 years.”

House Republicans have been huddling behind closed doors, working out final provisions in the 389-page tax portion of the package.

The legislation proposes to boost the standard deduction many Americans use by $2,000, to $32,000 per household, and increase the child tax credit from $2,000 to $2,500 for four years. It adds a new requirement focused on preventing undocumented immigrants from benefiting from the credit even if the children are U.S. citizens, which the Center on Budget and Policy Priorities, a liberal think tank, estimates would affect 4.5 million children who are U.S. citizens or lawful residents.

It would also increase the estate tax exemption, which is now $14 million, to $15 million and index future increases to inflation.

As for the president’s promises, the legislation includes Trump’s “no taxes on tips” pledge, providing a deduction for those workers in service industry and other jobs that have traditionally relied on tips. It directs the Treasury secretary to issue guidance to avoid businesses gaming the system.

The package also provides tax relief for automobile shoppers with a temporary deduction of up to $10,000 on car loan interest, applying the benefit only for those vehicles where the final assembly occurred in the United States. The tax break would expire at the end of Trump’s term.

For seniors, there would be a bolstered $4,000 deduction on Social Security wages for those with adjusted incomes no higher than $75,000 for individuals and $150,000 for couples.

But one hard-fought provision, the deduction for state and local taxes known as SALT, appears to be a work in progress. The legislation proposes lifting the cap to $15,000 for single filers and $30,000 for couples, but with a reduction at higher incomes — about $200,000 for singles and $400,000 for couples.

“Still a hell no,” wrote Rep. Nick LaLota (R-N.Y.) on social media.

Battle over Medicaid, food aid

Meanwhile, dozens of House Republicans have told Johnson and GOP leaders they will not support cuts to Medicaid, which provides some 70 million Americans with healthcare, nor to green energy tax breaks that businesses back home have been relying on to invest in new wind, solar and renewable projects.

All told, 11 committees in the House have been compiling their sections of the package as Republicans seek at least $1.5 trillion in savings to help cover the cost of preserving the 2017 tax breaks, which are expiring at the end of the year.

The final section from the Agriculture Committee proposed cutting the Supplemental Nutrition and Assistance Program, known as SNAP, by expanding work requirements, limiting future expansions of the program and forcing states to shoulder more of the cost.

Along with new work requirements for older Americans, it would also require some parents of children older than 7 to work to qualify, down from 18 years old. Only areas with unemployment rates over 10% would be eligible for waivers.

Some Republicans have already balked at the increased costs to the states, which would be required to contribute at least 5% of the cost of SNAP allotments beginning in 2028.

At the same time, the legislation would invest $60 billion in new money for agriculture programs, sending aid to farmers.

On Sunday, House Republicans on the Energy and Commerce Committee unveiled the cost-saving centerpiece of the package, with at least $880 billion in cuts largely to Medicaid to help cover the cost of the tax breaks.

While Republicans insist they are simply rooting out “waste, fraud and abuse” to generate savings with new work and eligibility requirements, Democrats warn that millions of Americans will lose coverage. In the 15 years since Obamacare became law, Medicaid has only expanded as most states have tapped into federal funds.

A preliminary estimate from the nonpartisan Congressional Budget Office said the proposals would reduce the number of people with healthcare by 8.6 million.

To be eligible for Medicaid, there would be new “community engagement requirements” of at least 80 hours per month of work, education or service for able-bodied adults without dependents. People would also have to verify their eligibility to be in the program twice a year, rather than just once.

There are substantial cuts proposed for green energy programs and tax breaks, rolling back climate-change strategies from the Biden-era Inflation Reduction Act.

Mascaro and Freking write for the Associated Press. AP writers Amanda Seitz, Leah Askarinam and Mary Clare Jalonick contributed to this report.