Overview

• The law permanently extends the 2017 Tax Cuts and Jobs Act, adds new deductions for tips and overtime income, raises the SALT cap and prevents tax increases for roughly 62% of Americans starting in the 2025 tax year.
• The nonpartisan Congressional Budget Office projects the package will increase federal deficits by $3.4 trillion over the 2025–2034 period, marking one of the largest deficit expansions via tax policy in U.S. history.
• Social safety net reforms impose work requirements and defer $176 billion in Medicaid and SNAP savings for two years, effectively postponing planned reductions until 2027.
• Defense and security provisions commit $175 billion to a new 'Golden Dome' missile defense system and allocate $170 billion to immigration and border enforcement, including $45 billion for detention centers.
• Passed strictly along party lines through the Senate budget reconciliation process, the 50–50 tie was broken by Vice President J.D. Vance to overcome a filibuster threat.