The House of Representatives has passed President Donald Trump’s tax bill, called the “One Big Beautiful Bill Act.” He had earlier described it as “big” and “beautiful.” This marks a big legislative win for Republicans.

Next Stop: The Senate

Now, the bill moves to the Senate. It only needs a simple majority to pass. However, the Senate might still challenge some parts.

The House began the debate just before midnight. By morning, they passed the bill with a 215–214 vote. Every Democrat opposed it. Moreover, two Republicans — Thomas Massie and Warren Davidson — voted against it.

Republican leaders spent two months drafting the bill. In the final two days, they made last-minute changes. As a result, the bill now spans over 1,000 pages, with 42 pages of amendments. The content aims to satisfy both moderate and conservative Republicans.

Meanwhile, the House Rules Committee debated the bill for 21 hours. They worked hard to meet Speaker Mike Johnson’s Memorial Day deadline.

Although the House approved it, the Senate will now examine it under budget reconciliation rules. This allows them to pass it with a simple majority, avoiding a 60-vote threshold.

Key Tax Changes

The bill makes permanent the individual income and estate tax cuts from 2017. Additionally, it introduces new tax breaks promised by Trump during his 2024 campaign — such as no taxes on tips, overtime, and interest on car loans.

To reduce costs, Republicans propose cutting or removing several clean energy tax credits from President Biden’s policies. As a result, the tax portion would cost around $3.8 trillion.

Moreover, the bill increases the standard deduction by $1,000 for individuals and $2,000 for couples. So, individuals can deduct $16,000, and couples $32,000.

It also temporarily boosts the child tax credit by $500, raising it to $2,500 between 2025 and 2028. After that, it drops back to $2,000, but it will adjust for inflation.

In addition, the estate tax exemption rises to $15 million, also tied to inflation.

One key issue is the state and local tax (SALT) deduction. Currently, the cap is $10,000. This bill increases the cap to $40,000 for incomes under $500,000. Above that, the cap reduces gradually. These income levels and caps will rise 1% each year for a decade.

Notably, most of Trump’s proposed tax breaks are temporary. They will expire in 2028. These include tax breaks on tips, overtime, car loans, and a $4,000 standard deduction boost for seniors.

Tax Breaks for Small Businesses

The bill also supports small businesses. It increases a key deduction from 20% to 23% of qualified income. Furthermore, businesses can deduct the cost of equipment, research, and machinery in the year they buy them. This change encourages companies to invest more quickly.

Cuts to Food Assistance

To save money, the bill proposes cutting $267 billion from the Supplemental Nutrition Assistance Program (SNAP) over ten years. Starting in 2028, states would pay 5% of benefit costs and 75% of administrative costs. Currently, states pay none of the benefit cost and only half the admin cost.

Additionally, the bill raises work requirements. Today, able-bodied adults must work until age 54. The bill raises this to age 64.

Also, only parents with children under age 7 will be exempt. Right now, parents qualify until the child turns 18.

Medicaid Changes and Work Rules

The bill seeks to reduce Medicaid spending by nearly $700 billion, according to the Congressional Budget Office (CBO).

It introduces new work requirements. Able-bodied adults without children must work, study, or volunteer 80 hours per month, starting December 31, 2026. Moreover, they must verify eligibility twice per year, instead of once.

Republicans argue this will save money. On the other hand, Democrats warn it could cause harm. The CBO estimates 8.6 million people could lose coverage in 10 years.

Gun Silencer Tax and Planned Parenthood Cuts

The bill eliminates the $200 tax on gun silencers, which has existed since 1934. The National Rifle Association (NRA) supports this move. However, gun safety groups like Giffords warn it could make it harder to detect gunfire and protect people.

At the same time, the bill blocks Medicaid funding for Planned Parenthood. This organization provides abortion services, birth control, and cancer screenings. Critics say this move will harm access to basic women’s health care.

“Trump” Baby Accounts

The bill creates new savings accounts called “Trump” accounts (formerly “MAGA” accounts). Parents of babies born between Jan 1, 2024, and Dec 31, 2028, will receive $1,000 if they open an account.

Additionally, families can contribute up to $5,000 per year. Children can’t touch the money until age 18. At that point, they can use half the funds for education, job training, or a first home. At age 30, they can use the rest for anything.

Border Wall and Immigration Funding

The bill allocates $46.5 billion for border security and mass deportations. This includes:

• $4 billion for 3,000 Border Patrol and 5,000 customs officers

• $2.1 billion for hiring bonuses

• $10 billion for 10,000 new ICE agents and investigators

Additionally, the bill raises asylum barriers. Migrants must now pay a $1,000 fee to apply for asylum. Only a few countries, such as Australia and Iran, charge similar fees.

Republicans aim to deport 1 million people per year. They will also build enough detention space for 100,000 migrants.

Military Spending and the “Golden Dome”

The bill includes nearly $150 billion for the Defense Department. It funds:

• $25 billion for a new missile defense system called the “Golden Dome for America”

• $21 billion to refill ammunition stocks

• $34 billion for building more Navy ships

• $5 billion for border security

• $9 billion for better military housing, health care, and pay increases

Big Changes to Student Loans

The bill overhauls the student loan system. It aims to save $330 billion. It removes Biden-era rules that helped cancel student loans for borrowers whose schools closed or misled them. Instead, it offers just two repayment options — a standard plan (10 to 25 years) and a revised income-based plan that offers less help. Moreover, the bill adds a 21% tax on large university endowments.

More Drilling and Logging Allowed

Finally, the bill expands oil drilling, mining, and logging on public lands. It speeds up the approval process for these activities. It also lowers royalty rates for companies extracting coal, oil, and gas. This move reverses President Biden’s policies on fossil fuels.