Here's what's in the House GOP's sweeping tax and spending cuts package
The details of House Republicans' plans for their sweeping tax and spending cuts package – otherwise known asPresident Donald Trump's "big, beautiful bill" – are coming into view now that lawmakers have revealed many of the consequential and controversial proposals. The House Ways and Means Committee on Monday released their long-awaited plan to extend trillions of dollars in tax cuts that are set to expire at the end of this year, as well as add thetax cutsthat Trump promised during his 2024 campaign, including exempting tips from taxation. It would beef up some tax breaks – including the popular child tax credit – as well as add at least one relatively new idea, a "MAGA" savings account for kids. Overall, the proposal would cost a little more than $3.8 trillion over 10 years, according to a revised Joint Committee on Taxation score – below the Ways and Means Committee's target of at least $4 trillion. The House Energy and Commerce Committeeon Sunday unveiled the initial textof its contentious proposal to slash spending on Medicaid, though the measures did not slice as deeply into program as some conservative members would like. The plan would hit the committee's target of reducing the deficit by at least $880 million over a decade, according to an initial Congressional Budget Office analysis. The two committees' proposals aren't finalized yet and could still change before they are voted on by the panels, which is expected to take place in the coming days. The overall package aims to extend the GOP's 2017 Tax Cuts and Jobs Act, as well as to fulfill several of Trump's campaign promises. To help offset these tax reductions, the House is also looking for at least $1.5 trillion in spending cuts. Republicans are also signaling they will make good on other Trump campaign promises, such as significant investments in staffing at the US southern border, new systems to discourage immigration into the US and a gigantic new missile defense shield. Then there are other longtime GOP policy goals, such as an overhaul of the nation's outdated air traffic system, new fees targeting electric cars and a pivot away from federal student loans. Eleven House committees are working on pieces of the larger bill, which will then be assembled into the package. Speaker Mike Johnson hopes to vote on the legislation before Memorial Day — an ambitious deadline. The Senate, however, has different ideas of what should be in the package. The chamber also has stricter rules of what can be included since congressional Republicans are pushing the legislation through using the budget reconciliation process so they don't need Democratic support in the Senate. Here's what we know about the initial plans that some House committees have proposed for the legislative package: For the first time in Medicaid's 60-year history, certain recipients ages 19 to 64 would be required to work at least 80 hours a month to retain their benefits, according to an initial version of the Energy and Commerce Committee's plan. They could also meet the controversial mandate by engaging in community service, attending school or participating in a work program. The requirement, which would take effect in 2029, would not apply to parents, pregnant women, medically frail individuals and those with substance-abuse disorders, among others. Republicans have long sought to add work requirements to Medicaid, which provides health insurance to more than 71 million low-income Americans. The first Trump administrationgranted waiversto several states to implement such a mandate, but the efforts were halted byfederal courts. The mandate may result in millions of people losing their coverage, multiple analyses have shown. While many adults on Medicaid have jobs, they may have trouble meeting the reporting requirements, obtaining exemptions or landing enough hours each month to maintain their eligibility. The plan also mandates states to check Medicaid expansion recipients' eligibility every six months, instead of annually, and to require that certain low-income adults covered under Medicaid expansion pay for a portion of their care. Recipients would also have to prove they have US citizenship or legal immigration status. In addition, the plan would penalize states that have expanded Medicaid and that provide Medicaid coverage to undocumented immigrants using state funds. These states would see a 10% reduction in their federal matching funds for the expansion population. Several states, including California, New York, Utah and Illinois, cover undocumented children, adults or both in state health plans. And it would limit states' ability to levy taxes on health care providers, the revenue which states use to boost provider rates and fund health-related initiatives, among other uses. All but one state levy at least one type of provider tax, which some Republicans claim is a scheme by states to get more federal matching funds. However, the committee did not include several other controversial proposals that would have reduced the share of federal funds that states receive. The child tax credit would rise to $2,500, up from $2,000, per child from 2025 through 2028, under the Ways and Means Committee plan. Also, the measure would require that parents, in addition to the child, have Social Security numbers. Currently, parents can claim the credit if they have individual taxpayer identification numbers, which some noncitizens who are not eligible for Social Security numbers use to file federal taxes. The change would mean 2 million fewer children would be eligible next year, according to the JCT. The Ways and Means Committee plan would create a new "money account for growth and advancement," or MAGA account. The federal government would provide a one-time $1,000 credit to the accounts of children born from 2025 through 2028 who are US citizens at birth. The annual contribution limit to the tax-preferred accounts would be $5,000, and money could not be withdrawn before the beneficiary turns 18. After that, the funds could be used for higher education or a first-time home purchase, among other purposes, and taxed at capital gains rates. After a beneficiary turns 31, the account would cease to be a MAGA account. Certain taxpayers would be able to deduct the income they receive from tips on their tax returns, fulfilling a key Trump campaign promise, under the Ways and Means Committee plan. But it would only apply to occupations that traditionally receive tips, in an effort to prevent employers and workers from recharacterizing their income as tips to escape taxes. The Treasury secretary would be tasked with publishing a list of such jobs. Highly compensated individuals, who make more than $160,000 in 2025, would not qualify. The deduction would apply to 4 million tipped workers, according to a fact sheet from Rep. Jason Smith, the committee's chair. Likewise, many workers who receive overtime would not have to pay taxes on that extra compensation. It would apply to 80 million hourly workers, according to Smith. Both breaks would be available to taxpayers who do not itemize their deductions, who are the majority of Americans. However, the measures would only be in effect from 2025 through 2028. Senior citizens would receive a $4,000 increase to their standard deduction from 2025 through 2028, according to the Ways and Means Committee plan. But the benefit would start to phase out for individuals with incomes of more than $75,000 and couples with incomes double that amount. This measure is aimed at fulfilling Trump's promise to end taxes on Social Security benefits since lawmakers cannot include such a measure under the rules of budget reconciliation, which Republicans are using to advance the package without Democratic support in the Senate. The Ways and Means Committee is proposing a new temporary deduction for the interest on car loans, in keeping with Trump's campaign promise. Eligible taxpayers could deduct up to $10,000 in interest annually from 2025 through 2028. But the tax break would start to phase out for single filers earning more than $100,000 and married couples earning $200,000. It applies to taxpayers who get car loans starting in 2025 and who buy passenger vehicles that had their final assembly in the US. The Ways and Means Committee plan would temporarily boost the standard deduction by $1,000 for single filers and $2,000 for married couples. And it includes some measures that would benefit wealthy Americans. It would make permanent the larger estate tax exemption, which would be set at $15 million per person for 2026 and would be indexed to inflation thereafter. Plus, it would make permanent a special deduction for the owners of certain pass-through entities who pay their business taxes on their individual tax returns. It would beef up that deduction to 23%, up from 20%. These so-called pass-through businesses include partnerships, such as those formed by lawyers, doctors or investors. The Ways and Means Committee plan would also hike the current limit on state and local tax deductions to $30,000 annually for married couples, up from $10,000. But the full amount would be limited to those making $400,000 or less, before it starts to phase out. For single filers, the cap would be raised to $15,000 for those earning $200,000 or less, before phasing out. The change would take effect starting in 2026. Republican lawmakers from high-tax states, including California and New York, have been demanding an increase to the so-called SALT cap for years since it disproportionately hits their constituents. The limit mainly affects higher-income residents in those states. Four New York representatives said last week that raising the cap to only $30,000 was "insulting." Republicans introduced the cap as part of their 2017 tax cuts package as a way to help pay for the sweeping legislation. Trump had promised to eliminate the cap on the campaign trail last year, but doing so would be very costly. The Ways and Means Committee would restore a tax break from the 2017 tax package that allowed businesses to fully write off the cost of equipment in the first year it was purchased. The incentive has been phasing out since 2023. Also, the plan would once again allow businesses to write off the cost of research and development in the year it was incurred. The TCJA required that companies deduct those expenses over five years, starting in 2022. The two provisions would expire after 2029. However, the plan would limit writing off the purchases of professional sports teams. Some universities currently pay a 1.4% tax on the net investment income from their endowments. The Ways and Means Committee plan calls for raising that rate to as high as 21%, depending on the endowment's size. Similarly, private foundations would see their tax rate jump to as much as 10%, up from roughly 1.4%. The Ways and Means Committee's plan would also raise the debt ceiling by $4 trillion. Congress needs to raise the debt limitbefore its August recessto prevent the nation from defaulting on its obligations, Treasury Secretary Scott Bessent wrote to lawmakers last week. Under a plan released by the House Agriculture Committee on Monday, more food stamp recipients would have to work to qualify for benefits. Currently, adults ages 18 to 54 without dependent children can only receive food stamps for three months over a 36-month period unless they work 20 hours a week or are eligible for an exemption. The committee's plan would extend the work requirement to those ages 55 to 64, as well as to parents of children between the ages of 7 and 18. Plus it would curtail states' ability to receive work requirement waivers in difficult economic times, limiting them only to counties with unemployment rates above 10%. The measure would also require states to pay for a portion of the benefit costs – at least 5% – for the first time, starting in fiscal year 2028. States with higher payment error rates would have to shoulder more of the burden – as much as 25% of the costs for those with error rates of at least 10%. Plus, states would have to pick up 75% of the administrative costs, rather than 50%. Advocates quickly criticized the proposals, saying recipients could lose crucial food assistance and states would be on the hook for millions of dollars, which could lead them to cut benefits and eligibility. Some 42 million Americans are enrolled in the Supplemental Nutrition Assistance Program, or SNAP, the formal name for food stamps. The proposals from House Republicans would effectively deal a blow to the Inflation Reduction Act, former President Joe Biden's major clean energy law passed in 2022. The proposals would end consumer tax credits helping lower the cost of electric vehicles and buying energy efficient appliance, rooftop solar and insulation. It would also phase out tax credits that businesses could use to build new electricity generation like wind and solar, as well as clean energy sources that the Trump administration has voiced support for, including nuclear and geothermal energy. Tax credits that remain largely intact include one that would allow the oil and gas industry to capture and sequester the planet-warming pollution it emits. Elsewhere, the House Energy and Commerce committee proposed clawing back unspent IRA funds, targeting a $27 billion grant program at the Environmental Protection Agency and other EPA and Energy Department programs. Over 20 House Republicans have called for the preservation of several tax credits that would be killed by the proposed bill, with some saying it's a red line given how much money and jobs have come to their districts following the Inflation Reduction Act. Here's what we know about what other House committees have already voted to approve: The Education and Workforce Committee's plan would dramatically restructure the way students can borrow from the federal government for college, as well as make big changes to the popular Pell grant program. It is seeking to find about $330 billion worth of savings by limiting the federal role in the student borrowing process. The measure would cap the total amount of federal aid a student can receive annually at the "median cost of college" and end economic hardship and unemployment deferments. Plus, it would bar loan servicers from temporarily suspending student loan payments for more than nine months over a two-year period. The changes also include terminating the subsidized loan program for undergraduate students and the Graduate PLUS loan program for new borrowers, with a three-year exception for students with such loans. The plan would amend the maximum annual and aggregate loan limits for unsubsidized loans, as well as require undergraduate students to exhaust their unsubsidized loan options before their parents can take out Parent PLUS loans. In addition, the measure would terminate all income-contingent repayment plans — including Biden's SAVE plan, which has been blocked in federal court. Instead, borrowers would have a choice of a standard repayment plan or a repayment assistance plan based on borrowers' income. The committee is proposing alterations to the Pell grant program, including requiring students attend school at least half time and increasing the number of credit hours needed for full-time enrollment. But it would expand eligibility for such grants for students enrolled in short-term workforce programs. And the measure would create "skin-in-the-game accountability" for colleges participating in the Direct Loan program by requiring them to reimburse the Department of Education for a portion of loans that aren't fully repaid. It would also establish a "Promise" program to provide colleges with performance-based grants of up to $5,000 per federal student aid recipient. The colleges must provide students with a guaranteed maximum total price for their program of study based on income and financial needs categories. The formula would reward institutions for strong earnings outcomes, low tuition, and enrollment and graduation of low-income students. Immigrants applying for asylum and work authorization, as well as those applying for humanitarian parole and temporary protected status, would have to pay new or higher fees, under the House Judiciary Committee's plan. Asylum seekers and parolees would have to pay $1,000 to apply and $550 for an initial work permit, for instance. Plus, sponsors of unaccompanied children would have to pay up to $3,500. The measure also provides $45 billion to build new immigration detention facilities, including family detention centers, to allow the detention of at least 100,000 people a day, on average. It supports hiring 10,000 more Immigration and Customs Enforcement officers, including money for retention and signing bonuses for the agents, and provides funding for 1 million annual deportations through ground and air transportation. And it provides $1.3 billion to hire immigration judges and support staff, as well as to expand courtroom capacity. The House Homeland Security Committee is proposing tens of billions of dollars to bolster border security, including $46.5 billion to expand and modernize the border barrier system. Planned investments include the completion of 700 miles of primary wall, the construction of 900 miles of river barriers, and the replacement of 141 miles of vehicle and pedestrian barriers. The measure would also provide $5 billion to acquire, construct or improve Customs and Border Protection facilities. Plus, it would funnel $4.1 billion for the agency to hire and train 3,000 new Border Patrol agents, 5,000 new Office of Field Operations customs officers, 200 new Air and Marine Operations agents, 290 support staff, and eligible retired agents and officers. It would also invest $2 billion in annual retention bonuses and signing incentives. It would provide nearly $1.1 billion to strengthen technology to detect and disrupt the smuggling of illegal drugs and people into the US, and $2.7 billion for border surveillance technology, including tunnel detection capability and unmanned aircraft systems. And the plan includes $1 billion for security and planning for the 2028 Olympics in Los Angeles, as well as $625 million for the 2026 FIFA World Cup, which will be hosted by the US, Canada and Mexico. It would also provide $300 million for the Federal Emergency Management Agency for the reimbursement of extra law enforcement costs for protecting presidential residences. The plan approved by Republicans on the House Oversight Committee, which is tasked with cutting at least $50 billion in spending, would require federal employees to contribute more to their pensions and make other changes to their retirement benefits. The most significant measure would be raising the Federal Employees Retirement System contribution rate for many current civilian and postal employees to 4.4% of their salary. Those hired prior to 2014 generally contribute either 0.8% or 3.1%, while more recent hires generally already contribute 4.4%. For new, younger retirees, the plan would also eliminate the additional retirement annuity payment they would receive until they are eligible for Social Security benefits. And it would base retirees' pension payments on their average highest five earning years, instead of highest three years, as well as reduce retirement system contributions for employees who agree to serve "at will," giving them fewer job protections. Plus, the plan would institute a fee for employees' appeals to the Merit Systems Protection Board, which would be refunded to them if they win their appeal. And it would require a comprehensive audit of workers' dependents enrolled in the Federal Employees Health Benefits program, including the verification of marriage and birth certificates. Under the House Transportation Committee's plan, electric vehicles would have to pay an annual registration fee of $250 and hybrid vehicles would be assessed an annual fee of $100. The funds would be deposited into the Highway Trust Fund. But a proposal to levy a $20 annual tax on gas vehicles was dropped, after it faced swift pushback from conservatives. The committee's plan would also eliminate seven green programs authorized by the Democrats' 2022 Inflation Reduction Act, including the Low-Carbon Transportation Materials Grants Program and the Federal Aviation Administration's Alternative Fuel and Low-Emission Aviation Technology Program. The committee is tasked with providing $10 billion in savings. The House Transportation Committee would appropriate $12.5 billion for the modernization of the nation's air traffic control system. The funds would begin replacing outdated technology and enhance the hiring of air traffic controllers. The plan proposed by the House Financial Services Committee would limit the embattled Consumer Financial Protection Bureau's authority to draw funds from the Federal Reserve. Also, it would essentially eliminate the Public Company Accounting Oversight Board, which was established by Congress to oversee the audits of public companies, by shifting its responsibilities to the Securities and Exchange Commission and barring it from collecting fees from companies and brokers and dealers. The House Armed Services Committee is proposing to add roughly $150 billion to strengthen the nation's defense programs. The committee's plan includes nearly $25 billion for Trump's "Golden Dome" missile defense initiative, which calls for developing a space-based system and quickly accelerating defense capabilities against hypersonic threats. It would provide nearly $34 billion for ship building and more than $20 billion for munitions, including ramping up the domestic production of rare earth and critical minerals. Also, the measure would funnel more than $8.5 billion to improving service members' quality of life, including renovating military barracks, providing supplemental payments of the Basic Housing Allowance, expanding educational opportunities and child care fee assistance, and broadening professional licensure assistance programs for military spouses. The House Judiciary Committee's plan would defund the enforcement of contempt orders if the judge had previously not ordered the plaintiffs in the case to put up a security bond with a preliminary injunction or temporary restraining order granted in their favor. The goal is to stop frivolous lawsuits, according to a committee spokesperson. This story has been updated with additional developments. CNN's Ella Nilsen, Sarah Ferris, Manu Raju, Lauren Fox and Tierney Sneed contributed to this report. For more CNN news and newsletters create an account atCNN.com
Here's what's in the House GOP's sweeping tax and spending cuts package The details of House Republicans' plans for their sw...
