House Passes Sweeping Tax and Spending Bill; Senate Changes Expected

House Republicans have passed a sweeping multitrillion-dollar tax and spending bill that enacts many of former President Donald Trump’s priorities, setting the stage for a contentious Senate debate expected to reshape key provisions.

The legislation, dubbed the “One Big Beautiful Bill Act,” cleared the House on May 22 following months of negotiation. It makes permanent the 2017 Trump-era tax cuts, introduces new tax breaks—including for tip income, overtime pay, and older Americans—and implements historic spending cuts to Medicaid, education, and other domestic programs.

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“This bill redirects money to the military and border security,” House leadership said during a post-vote press conference.

Senate Republicans are now weighing revisions, with lawmakers aiming to finalize the package by July 4 using the budget reconciliation process, which allows passage with a simple majority.

Policy analysts anticipate substantial debate over provisions such as the Medicaid cuts, changes to the child tax credit, and the cap on state and local tax (SALT) deductions.

“Overall, the [Senate] bill is not going to be that much different,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center. “But there will be a lot of debate” over specific items, he added.

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The House bill raises the SALT deduction cap to $40,000 for 2025, with a phase-out for incomes over $500,000. Analysts expect the Senate to favor a lower cap, potentially closer to the current $10,000 limit.

Any Senate revisions will require House approval, a potentially difficult step given the narrow Republican majority.