In a narrow 215–214 vote early Thursday morning, House Republicans passed a sweeping tax and spending package advancing President Trump’s domestic agenda. The legislation extends major tax cuts from Trump’s first term while enacting deep reductions to Medicaid, food assistance, and clean energy programs.
Speaker Mike Johnson secured passage after last-minute concessions to holdouts, including accelerating Medicaid work requirements and adjusting state tax deductions. No Democrats supported the bill, and two Republicans voted against it. Here is a summary of major elements of the bill:
Medicaid
The bill enacts roughly $700 billion in cuts to Medicaid over 10 years. Key provisions include mandatory work requirements for childless adults beginning in 2026, new co-pays of up to $35 per visit, and shorter retroactive eligibility windows. It also eliminates enhanced federal funding for states newly expanding Medicaid under the ACA and reduces reimbursements to states that offer coverage to undocumented immigrants. Washington state officials warn these changes could result in 194,000 residents losing coverage and $2 billion in lost federal funds over four years.
SNAP (Food Assistance)
SNAP, the federal food assistance program, would see over $300 billion in structural and administrative changes. These include expanded work requirements, new cost-sharing mandates for states, stricter eligibility verification rules, and caps on energy-related deductions used in calculating benefits.
Climate Programs
The legislation repeals or sharply curtails more than $500 billion in clean energy tax credits and programs introduced under the Inflation Reduction Act. It terminates or phases out credits for solar, wind, EVs, geothermal, and battery production. It also repeals EPA emissions rules, defunds climate resilience and port pollution programs, and rolls back grants to state and local governments for greenhouse gas reduction.
Individual Income Taxes
The bill permanently extends key elements of the 2017 Trump tax cuts. This includes lower marginal rates across income brackets, an expanded standard deduction, and higher exemption thresholds for the Alternative Minimum Tax (AMT). The child tax credit is enhanced by $500 per child through 2028 and indexed to inflation thereafter. These changes total more than $4 trillion in lost revenue over a decade and provide the largest gains to high-income households.
Other Tax Cuts
Beyond individual income tax changes, the legislation expands and extends a wide array of business-friendly tax provisions. These include permanent full expensing for capital investments, an expanded pass-through income deduction (from 20% to 23%), and a larger estate tax exemption. Temporary deductions—such as for overtime pay, car loan interest, and tips—are included through 2028. The bill also creates new child savings accounts dubbed “Trump Accounts.”
Defense
The bill directs $138 billion in new defense spending, including $32 billion for shipbuilding, $24 billion for missile defense, and $19 billion for expanding munitions and the defense industrial base. Additional funding supports nuclear modernization and Indo-Pacific force posture.
Border Security
Roughly $150 billion is allocated to border and immigration enforcement. This includes $50 billion for continued construction of the border barrier system, $73 billion in expanded enforcement capabilities funded by increased immigration fees, and $15 billion for hiring and technology upgrades at U.S. Customs and Border Protection. A new provision offers $12 billion in reimbursements to states for border-related expenses, a priority for hardline immigration factions within the GOP.
The bill now heads to the Senate, where its future is uncertain. Several Republican senators have already expressed concerns over deficit impacts and policy scope, and changes are expected before any final version reaches President Trump’s desk.