A Look at the Key Items in Trump’s ‘Big, Beautiful Bill’

House Republicans have passed President Donald Trump’s ambitious tax and spending bill by a razor-thin margin of 215–214, marking a significant legislative victory for the administration. The more than 1,000-page bill includes sweeping tax cuts, federal benefits reforms, and a major increase to the national debt ceiling. It now moves to the Senate, where revisions are expected before final approval.

Here are the major elements included in the bill:

Social Security Deduction Expansion

While the bill stops short of eliminating taxes on Social Security income, it raises the standard deduction by up to $4,000 for individuals aged 65 and older from 2025 to 2028. The benefit begins to phase out for individuals earning over $75,000 and married couples earning over $150,000.

Stricter Medicaid Requirements

To fund the tax cuts, the bill introduces new restrictions on Medicaid. Starting December 2026, childless adults without disabilities must work at least 80 hours per month to qualify. Additionally, enrollees will be required to re-certify eligibility every six months, with expanded income and residency verification rules.

Higher SALT Deduction Cap

The bill raises the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for married couples earning up to $500,000—a major concession aimed at winning over Republicans from high-tax states.

Changes to SNAP (Food Assistance)

The legislation adds stricter work requirements for able-bodied recipients without dependents in the Supplemental Nutrition Assistance Program (SNAP), and shifts more financial responsibility for the program to individual states.

Tax Relief on Overtime and Tips

Fulfilling a key campaign promise, the bill eliminates federal taxes on overtime wages and tips, providing potential relief to millions of hourly workers.

Car Loan Interest Deduction

Americans will be allowed to deduct interest paid on car loans—but only for U.S.-made vehicles—encouraging domestic auto purchases.

Boosted Child Tax Credit

The child tax credit will increase from $2,000 to $2,500 through 2028, but will only apply to children with valid Social Security numbers.

Debt Ceiling Raised by $4 Trillion

The bill raises the federal debt ceiling to $4 trillion, allowing the government to continue funding existing programs and obligations. This provision, however, sparked concerns among fiscal conservatives and drew criticism over its long-term impact on national debt.

What’s Next?

The Senate is expected to review and potentially amend the bill. Any changes would send the legislation back to the House for another vote. President Trump has publicly urged swift Senate action, calling on lawmakers to deliver the bill to his desk “as soon as possible.”

Democrats have denounced the bill, particularly criticizing its impact on low-income Americans. House Minority Leader Hakeem Jeffries labeled it a “reckless, regressive and reprehensible GOP tax scam,” vowing to use the issue in the 2026 midterm elections.