The One Big Beautiful Bill Act (H.R. 1), a 1,116-page budget reconciliation package, was reported out of the House Rules Committee on May 21, 2025, with an 8-4 vote, paving the way for a House floor vote. This legislation, embodying President Donald Trump’s domestic agenda, combines tax cuts, spending reductions, border security enhancements, and policy reforms to deliver on his 2024 campaign promises. The bill represents a bold push for economic growth and conservative priorities but faces challenges from GOP internal divisions and Democratic opposition. Below are the eight most significant changes in the final House version, based on verified data from sources like the Tax Foundation, House Rules Committee, PBS, The New York Times, and the Congressional Budget Office (CBO), as of May 22, 2025.
1. Permanent Extension of 2017 Tax Cuts and Jobs Act (TCJA)
The final House version permanently extends core TCJA provisions, including individual income tax rates (top rate at 37%), the doubled standard deduction, and increased alternative minimum tax (AMT) exemptions, preventing a $7.7 trillion tax hike if they expired in 2025, per the Tax Foundation. It also maintains the 20% qualified business income deduction (Section 199A) at 23%, lowering the effective rate to 28.49%, and makes it permanent, benefiting 26 million small businesses, per the Job Creators Network. This aligns with center-right goals of tax stability but adds $4.9 trillion to deficits before offsets, per the CBO.
2. Temporary Tax Relief for Individuals (2025–2028)
The bill includes temporary tax cuts expiring after Trump’s term, such as increasing the standard deduction to $32,000 for joint filers (from $24,000), $19,500 for heads of household, and $13,000 for others. It raises the child tax credit to $2,500 (from $2,000), adds a $1,000 newborn credit (2026–2029), and eliminates taxes on tips, overtime pay (excluding high earners), and auto loan interest, per Wipfli and the Tax Foundation. These measures, costing $3.8 trillion, target middle-class relief but draw criticism for their temporary nature and complexity, per the Tax Foundation.
3. State and Local Tax (SALT) Deduction Cap Increase
The SALT deduction cap is raised from $10,000 to $30,000 for joint filers earning under $400,000, made permanent, but phases down to $10,000 for incomes above $400,000, per Proskauer Tax Talks. This compromise addresses demands from blue-state Republicans like Rep. Nick LaLota (NY) but falls short of their push for a $62,000 cap, which would add $1 trillion to the deficit, per The New York Times. The change, a concession to moderates, risks alienating fiscal hawks like Rep. Chip Roy (TX).
4. Medicaid Reforms and Work Requirements
The bill accelerates Medicaid work requirements for able-bodied adults, now starting in 2027 instead of 2029, removing 10 million from enrollment, including 1.4 million non-citizens, saving $700 billion over a decade, per PBS and ABC News. It increases copays by $35 for beneficiaries above the federal poverty line ($15,500 for singles) and tightens income and residency verification to curb “double-dipping.” These reforms, a win for conservatives, sparked Democratic opposition, with Rep. Pramila Jayapal (WA) calling it a “betrayal,” per NPR.
5. Supplemental Nutrition Assistance Program (SNAP) Cuts
The bill tightens SNAP eligibility, shifting 5% of benefit costs and 75% of administrative costs to states and expanding work requirements to age 64, impacting 42 million recipients and saving $300 billion, per ABC News and The Guardian. Conservatives like Roy secured these changes, but moderates like Rep. Don Bacon (NE) express concerns about low-income families, per PBS, highlighting GOP tensions.
6. Border Security Investments
The final version allocates $46 billion for border security, funding 701 miles of border wall, 4,100 new Border Patrol agents, 10,000 ICE officers, and AI fentanyl scanners, targeting 1 million annual deportations, per the White House and ABC News. It reimburses states for immigration enforcement, a concession to conservatives, per The New York Times. This fulfills Trump’s campaign pledge but risks backlash from Hispanic voters (10% of Georgia’s electorate).
7. Repeal and Phase-Out of Green Energy Credits
The bill phases out Inflation Reduction Act (IRA) clean energy credits, including electric vehicle and residential energy efficiency credits, starting in 2028 and ending by 2031, saving $500 billion, per the Tax Foundation and Mintz. Conservatives, per Rep. Roy’s X post, secured a faster rollback than the initial draft, addressing “green new scam” subsidies, but the phase-out leaves room for future extensions, risking “extender” status, per the Tax Foundation.
8. Business Tax Incentives and R&D Expensing
The bill restores 100% bonus depreciation for qualified property (e.g., factories) placed in service from January 20, 2025, to 2029, and allows immediate expensing of domestic research and development (R&D) costs through 2029, reversing TCJA’s five-year amortization, per Mintz. It also raises the gross receipts threshold for small business tax accounting and interest limitations, saving businesses $1.2 trillion, per Wipfli. These pro-growth measures, endorsed by the Job Creators Network, bolster small businesses but add to the $3.2–$4.1 trillion deficit increase, per the CBO.
Broader Context and Challenges
The final House version, modified by a manager’s amendment in Rules Committee Print 119-3, passed the Budget Committee 17-16 on May 18, with four conservative Republicans (Reps. Chip Roy, Ralph Norman, Josh Brecheen, Andrew Clyde) voting “present” after securing changes like faster Medicaid work requirements, per NPR and The New York Times. Speaker Mike Johnson aimed for a House vote by Memorial Day, but the slim GOP majority (three-vote margin) and Senate revisions loomed, per Politico. Democrats, led by Rep. Hakeem Jeffries, oppose the bill, citing Medicaid and SNAP cuts, per The Guardian. The bill’s $4 trillion deficit hike, despite $1.6 trillion in savings, draws criticism from fiscal hawks, per the Committee for a Responsible Federal Budget.
Final words
The final House version of the One Big Beautiful Bill Act is a significant step toward Trump’s agenda, permanently extending TCJA tax cuts, boosting border security, and curbing green energy subsidies. Temporary tax relief, business incentives, and accelerated Medicaid and SNAP reforms appeal to the GOP base, but the SALT cap compromise and deficit concerns risk fracturing party unity. The $46 billion border investment and R&D expensing are conservative wins, but Democratic opposition and Senate changes could alter the bill’s scope. As Johnson navigates a tight House vote, these eight changes define a high-stakes effort to reshape federal policy, with implications for the 2026 midterms.
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