Trump's "Beautiful" 1,000-Page Bill: What's Really Inside?

WASHINGTON (AP) — The House Republicans are nearing approval for a new measure. President Donald Trump's Tax incentives, expenditure reductions, and enhanced border control measures as Speaker Mike Johnson strives to get the legislation approved despite the cohesive Democratic resistance by Memorial Day.

House committees have been working for several 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 lessened somewhat but still persists, with fiscal conservatives concerned that the bill does not sufficiently limit Medicaid expenditures. Meanwhile, Republican lawmakers representing closely contested swing districts fear that their voters may lose crucial healthcare coverage and nutritional support.

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 permanently maintain the individual income and estate tax reductions implemented during Trump's initial term in 2017, along with introducing policies he pledged during his 2024 campaign, such as avoiding taxes on tips, overtime, and certain types of auto loan interest.

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 administration. This adjustment helps lower the total expense of the taxation segment to roughly $3.8 trillion.

The legislation features a provisional enhancement in the basic deduction — an increment of $1,000 for single taxpayers, which raises it to $16,000 for those filing individually, along with a $2,000 uplift for married couples filing jointly, elevating this threshold to $32,000. This reduction lowers the portion of your earnings that will be taxed.

Additionally, there’s 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 with inflation thereafter.

The threshold for estate taxes increases to $15 million and will be adjusted for inflation moving ahead.

The most challenging issue during the discussions has revolved around increasing the limit for the state and local tax deduction, which is currently set at $10,000. This matter has been particularly important to representatives from New York. An initial deal has been made to boost this "SALT" cap to $40,000 for individuals earning up to $500,000 annually; however, the ceiling would decrease gradually for those with income exceeding that amount.

Many of the measures Trump pledged during his campaign were intended to be provisional, valid primarily throughout his tenure in office. The tax relief for gratuities, overtime, and auto financing will sunset at the conclusion of 2028. Similarly, an additional $4,000 standard deduction for senior citizens is set to expire then as well.

Across multiple business tax provisions, small enterprises such as partnerships and S corporations can deduct 23% from their qualifying business income for tax 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 same year. Additionally, this incentive extends to the full expensing of expenditures for machinery, equipment, and eligible assets. Such provisions aim to motivate businesses to boost their productivity through investment.

Parents and elderly individuals must meet work conditions to qualify for food aid.

Republican members of the House aim to cut expenditures for food assistance programs, referred to as the Supplemental Nutrition and Assistance Program, by approximately $267 billion throughout a decade.

Starting in fiscal year 2028, states would be responsible for covering 5% of the benefit expenses, along with shouldering 75% of the administrative costs. At present, they do not contribute anything towards the benefits but cover only half of the administrative costs.

Republicans are also broadening the work prerequisites for receiving food assistance. According to present legislation, capable individuals without children have to meet these job conditions up to the age of 54; however, this limit would be extended to 64 years old 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.

And updated employment conditions for Medicaid

A focal point of the package amounts to approximately $700 billion in decreased expenditures from the Medicaid program, as reported by the CBO.

In order to qualify for Medicaid, individuals must meet new "community involvement criteria," which entail engaging in at least 80 hours each month in activities such as employment, education, or community service. This stipulation will only come into effect starting January 1, 2029, following President Trump’s term. Additionally, people would need to confirm their qualification status for the program biannually instead of annually.

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 nonpartisan 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 stemming from alterations to the Affordable Care Act.

No tax on firearm suppressors, no funding for Planned Parenthood, and more

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 money from being used for Planned Parenthood, an entity that offers abortion services. Democrats argue that cutting funding would make it more difficult for millions of people to receive essential health services such as cancer screenings, Pap tests, and contraception.

'MAGA' children get $1,000 savings accounts

MAGA" stands for Trump's catchphrase, "Make America Great Again." However, here it signifies "Money Accounts for Growth and Advancement.

For parents or 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 the 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 enforcing deportations.

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 recruitment 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 individuals 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 deport 1 million immigrants each year and detain 100,000 individuals in 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.

It would allocate $25 billion for Trump’s “Golden Dome for America,” a long-awaited missile defense 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.

It also encompasses $9 billion for enhancing the quality of life for service members, covering areas such as housing, healthcare, and special pays.

Taxation of university endowments and restructuring 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 .

The proposal aims to substitute all current student loan repayment plans with only two options: a standard choice featuring monthly payments extended over 10 to 25 years, and a "repayment assistance" plan which typically offers fewer benefits compared to what exists presently.

The legislation would also overturn rules established during the Biden administration that simplified the process for borrowers to have their loans forgiven if they were victims of fraud at their schools or if the institutions shut down unexpectedly.

A tax hike of up to 21% could be imposed on certain university endowments.

Increased drilling and mining activities on federal lands

To generate revenue, one section Would enable expanded leasing of public land for activities such as drilling, mining, and logging, while streamlining processes to facilitate greater development through faster governmental approval procedures.

The royalty fees charged to firms for extracting oil, natural gas, and coal would be reduced, overturning Biden’s efforts in this area. curb fossil fuels to assist in tackling climate change.

As an afterthought, Republicans added a clause permitting the sale of hundreds of thousands of acres of federal 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 Frelinghausen from The Associated Press