Overview

• The legislation extends the 2017 Trump tax cuts, raises the SALT deduction cap to $40,000 for taxpayers earning under $500,000, and eliminates federal taxes on tips and overtime pay.
• It imposes major cuts to Medicaid and SNAP, including stricter work requirements, which the CBO estimates could lead to 8.6 million losing Medicaid coverage and $290 billion in SNAP reductions.
• The bill includes $150 billion each for border security and military spending, alongside funding increases for certain Republican-led states that declined Medicaid expansion.
• The Congressional Budget Office projects the bill would add $3.8 trillion to the federal deficit over the next decade, raising concerns among Senate Republicans about fiscal sustainability.
• Senate Republicans, including Sens. Ted Cruz and Susan Collins, have signaled they will push for changes to Medicaid cuts and deficit impacts, complicating the bill’s path to final approval.