House GOP leaders have made several last-minute adjustments to tax and spending packages aimed at securing more support from holdouts.
The revisions address issues such as state and local tax (SALT) deduction caps as part of an effort to rally enough backing for the bill and cater to the diverse factions within the GOP conference.
Before the bill is presented to the House floor, here are some key modifications that have been made.
Medicaid Job Requirements
One significant change is a more stringent timeline for new work requirements for Medicaid recipients. Initially, the plan called for these requirements to kick in by early 2029, but the updated version now mandates implementation by the end of next year. Conservatives have pushed for this quicker timeline to boost potential savings from the bill.
SALT Deduction Cap
The original proposal raised the SALT deduction cap from $10,000 to $30,000 for individuals earning up to $400,000. However, the revised plan increases this cap to $40,000 for those making up to $500,000. This deduction primarily benefits taxpayers in states with high taxes, allowing them to deduct some local taxes from their federal obligations.
GOP members from higher-tax blue states insisted on these modifications, threatening to oppose the bill without more relief.
Previous End Date for Green Tax Credit
The updated legislation accelerates the rollback of tax credits for renewable energy projects. Previous versions phased out these credits for projects starting to generate electricity after 2028, but the new plan eliminates them entirely for such projects. Additionally, these projects must begin construction within 60 days of the bill’s enactment to qualify. A special exemption for nuclear energy has been included, which allows it to receive tax credits if construction starts before the end of 2028.
Gender Maintenance Care
The initial bill aimed to cut Medicaid funding for gender transition procedures for minors. The recent changes now extend this ban to adults as well.
“Trump Account”
The proposal has also rebranded the “Money Account for Growth and Progress,” previously known as the “MAGA Account,” to the “Trump Account.” Republicans present this as a type of savings account intended to promote education, with a provision for the government to contribute $1,000 per child for eligible newborns between January 1, 2024, and December 31, 2028.
Public Land Sales and Related Regulations
During the amendment process, the Republicans added contentious provisions allowing the sale of some public lands in states like Utah and Nevada. The revised text has removed previously included clauses that mandated additional drilling opportunities in the Arctic in order to approve the National Oil Reserve-Alaska Mining Road.
Federal Workers’ Retirement Benefits
Changes also include the removal of proposals that drew criticism from both sides regarding federal employee retirement benefits. The original bill had suggested altering the pension formula calculations for federal workers from a three-year to a five-year revenue basis.
Rep. Mike Turner (R-Ohio) spoke against this proposal, emphasizing that it is unfair to change pension rules mid-career. He noted that employee benefits should be regarded as earned rather than bestowed, and while he acknowledges the need for reforms, he argues that altering the rules for existing employees during their tenure is unjust.
