The bill extends Trump's tax cuts, raises the SALT deduction cap to $40,000 for incomes under $500,000, accelerates Medicaid work requirements to 2026, and cuts funding for Medicaid and food assistance programs.

The Congressional Budget Office estimates that the bill could result in 8.6 million people losing health care coverage over the next decade due to the Medicaid cuts and work requirement changes.

Committee for a Responsible Federal Budget

The bill passed narrowly in the House with a 215-214 vote, indicating significant divisions within the Republican party, although Speaker Mike Johnson expressed confidence in the bill's passage.

Committee for a Responsible Federal Budget

The bill raises the SALT deduction cap to $40,000 for incomes under $500,000 and permanently extends and enhances estate and gift tax exemption amounts, increasing them to $15 million for single filers and $30 million for married couples in 2026, with inflation indexing thereafter.

House Ways and Means Committee

The bill establishes a new tax credit for donations to scholarship-granting organizations, limited to $5,000 per individual annually, supporting education funding through charitable contributions.

Tax Foundation