House Passes ‘One Big, Beautiful Bill’
The House approved “One Big, Beautiful Bill” early Thursday morning after the House Rules Committee put forth and agreed to an amendment the night before.
Lawmakers made key revisions that helped the bill garner almost unanimous support from House Republicans, including members of both the House Freedom Caucus (HFC) and moderate Blue State representatives. Remarkably, the legislation passed by a single vote.
With the new law, Medicaid work requirements will start on December 31, 2026—an earlier date than previously planned. States can also adopt these requirements sooner, limiting the future administration’s ability to opt out for certain groups.
This move was largely in response to HFC members, who pushed to eliminate waste and fraud within Medicaid. Notable figures like Texas Rep. Chip Roy and South Carolina Rep. Ralph Norman, who initially opposed progress on the bill in mid-May, ultimately supported it.
Additionally, the bill prohibits Medicaid funds from being used for transgender treatments and procedures, affecting both minors and adults. It also applies cost-sharing reduction payments to private health insurance plans.
The Fund Account Growth and Progress (MAGA) account, designed to offer $1,000 to newborn Americans over the coming years, has been renamed the “Trump Account.” The cap on the state and local tax (SALT) deduction has also been increased from $30,000 to $40,000 for households earning up to $500,000, with phase-out caps for those making more than that.
Some Blue State Republicans, such as Mike Lawler and Nick Larota, are advocating for an even higher SALT cap, as affluent taxpayers in high-tax states like California and New York benefit the most from deductions.
Conversely, many Republicans from red states have opposed the SALT deduction, arguing that it primarily aids wealthier Americans.
Starting in 2028, the current tax credits for low-carbon electricity under the Biden-era Inflation Reduction Act will also phase out. New projects can still seek tax credits, provided they allocate at least 5% of costs within the project’s first 60 days, while nuclear energy tax credits will remain protected if construction starts by the end of 2028.
Notably, an amendment removed a provision allowing the sale of over 500,000 acres of public land in Utah and Nevada. This was actively opposed by Montana Rep. Ryan Zinke, a former Secretary of the Interior.
Since Joe Biden’s inauguration, $1.2 billion has been earmarked for border security, covering reimbursements for previous expenditures.
The bill also aims to dismantle regulations related to gun suppression devices and remove certain taxes on gun manufacturers. Additionally, provisions regarding tanning bed taxation were removed in the House version.
Following the successful vote, House Speaker Mike Johnson stated that the legislation represents a generational opportunity to reduce taxes, secure borders, and enhance energy control. He expressed hopes that the Senate would review the legislation promptly.
However, it’s worth noting that some policies may face challenges in the Senate, as Majority Leader John Tune remarked on ongoing tax issues and their implications for long-term cuts.
Trump lauded the House’s achievements on social media, asserting the bill is likely a pivotal part of legislative history. He urged swift action from the Senate to advance it further.
