WASHINGTON (AP) — Republicans in Congress are moving with rapid speed to advance of tax breaks, spending cuts and beefed-up border security funding as leaders work to enact many of his campaign promises.
House committees have been laboring for months to draft the legislation, which Republicans have labeled “THE ONE, BIG, BEAUTIFUL BILL,’’ a nod to Trump himself. Speaker Mike Johnson is pushing to approve the package and send it to the Senate by Memorial Day.
Democrats say they will fight what House party leader Hakeem Jeffries calls “this extreme and toxic bill.â€
Here's a look at what's in and out of the legislative package so far:
Tax cuts for individuals and businesses
The tax portion of the GOP legislation contains more than $5 trillion in tax cuts, according to an estimate from the Joint Committee on Taxation — costs that are partially offset by spending cuts elsewhere and other changes in the tax code.
Republicans look to make permanent the individual income tax cuts passed in President Donald Trump’s first term, plus enact some of the promises he made on the campaign trail to not tax tips, overtime and interest on auto loans. Republicans partially offset the tax breaks by rolling back the clean energy tax credits passed during Joe Biden's presidency, such as a $7,500 tax credit for electric vehicles, bringing the overall cost of the tax cuts down to about $3.7 trillion.
The bill is expected to undergo further changes in the coming weeks. Lawmakers from New York are leading an effort to boost the state and local tax deduction, which the bill would already increase from $10,000 to $30,000 for families making less than $400,000 per year.
The legislation provides a deduction for those workers in service industry and other jobs that have traditionally relied on tips.
The package provides tax relief for automobile shoppers with a temporary deduction of up to $10,000 on car loan interest, applying the benefit only for those vehicles where the final assembly occurred in the United States. The tax break would expire at the end of Trump’s term.
For seniors, there would be a bolstered $4,000 deduction on Social Security wages for those with adjusted incomes no higher than $75,000 for individuals and $150,000 for couples.
States to pick up more of the tab for food assistance
House Republicans are looking to shift some of the cost of the Supplemental Nutrition and Assistance Program, known as SNAP, to the states. States would shoulder 5% of benefit costs under the bill beginning in fiscal year 2028. The share could also go higher for those states with high rates of overpayments and underpayments. The bill would also require states to pick up 75% of the administrative costs.
Currently, states shoulder none of the benefit costs and half of the administration costs.
Republicans argue that states have minimal incentive to control costs as a result of the current cost-sharing arrangement. But the changes would give them the incentive to enhance efficiencies and improve outcomes for recipients.
Republicans also are expanding work requirements for food aid recipients, which under current law applies to individuals without dependents aged 18-54. The bill expands the work requirement through age 64 and exempts only those caring for a dependent child under the age of 7.
At the same time, the legislation would invest $60 billion in new money for agriculture programs, sending aid to farmers.
New work requirements for Medicaid
A centerpiece of is more than $900 billion in reduced spending, most of that coming through the Medicaid program.
Republicans insist they are simply rooting out to generate savings with new work and eligibility requirements. But Democrats warn that millions of Americans will lose coverage. In the 15 years since Obamacare became law, Medicaid has only expanded as most states have tapped into federal funds.
An estimate from the nonpartisan Congressional Budget Office said the proposals would reduce the number of people with health care by at least 7.6 million from the Medicaid changes, and possibly more with other changes to the Affordable Care Act.
To be eligible for Medicaid, there would be new “community engagement requirements†of at least 80 hours per month of work, education or service for able-bodied adults without dependents. The new requirement would not kick in until Jan. 1, 2029. People would also have to verify their eligibility to be in the program twice a year, rather than just once.
Applicants could not qualify for Medicaid if they have a home that is valued at more than $1 million.
Funding for 1 million migrant deportations, 20,000 new officers and the border wall
The legislation would provide $46.5 billion to revive construction of Trump’s wall along the U.S.-Mexico border, and more money for the deportation agenda.
There's $4 billion to hire an additional 3,000 new Border Patrol agents as well as 5,000 new customs officers, and $2.1 billion for signing and retention bonuses, for a total of $69 billion in new spending.
It includes major changes to immigration policy, imposing a $1,000 fee on migrants seeking asylum — something the nation has never done, putting it on par with few others, including Australia and Iran.
Overall, the plan is to remove 1 million immigrants annually and house 100,000 people in detention centers. It calls for 10,000 more Immigration and Customs Enforcement officers and investigators.
More money for the Pentagon and Trump's ‘Golden Dome’
The House Armed Services Committee was tasked with drafting legislation with $100 billion in new spending. But they did that and more, for the Defense Department and national security.
Among the highlights, it would provide $25 billion for Trump's “Golden Dome for America,†a long-envisioned missile defense shield, $21 billion to restock the nation's ammunition arsenal, $34 billion to expand the naval fleet with more shipbuilding and some $5 billion for border security.
It also includes $9 billion for servicemember quality of life-related issues, including housing, health care and special pay.
Tax on university endowments and overhaul of student loans
A wholesale revamping of the student loan program is key to the .
The proposal would replace all existing student loan repayment plans with just two: a standard option with monthly payments spread out over 10 to 25 years and a “repayment assistance†plan that is generally less generous than those it would replace.
Among other changes, the bill would repeal Biden-era regulations that made it easier for borrowers to get loans canceled if their colleges defrauded them or closed suddenly.
There would be a tax increase, up to 21%, on some university endowments.
Federal employee pension cuts
The House Committee on Oversight and Government Reform targeted for a projected $50.9 billion in deficit savings over 10 years.
Most of the savings would come from requiring federal workers hired before 2014 to pay more into the retirement system. They would have to match the 4.4% salary rate paid by federal workers hired since 2014.
More drilling, mining on public lands
One section of the would allow increased leasing of public lands for drilling, mining and logging while clearing the path for more development by speeding up government approvals. Royalty rates paid by companies to extract oil, gas and coal would be cut, reversing former President Joe Biden’s attempts to to help address climate change.
Oil and gas royalty rates would drop from 16.7% on public lands and 18.75% offshore to a uniform 12.5%. Royalties for coal would drop from 12.5% to 7%.
The measure calls for four oil and gas lease sales in the Arctic National Wildlife Refuge over the next decade. It also seeks to boost the with a mandate to make available for leasing 6,250 square miles of public lands — an area greater in size than Connecticut.
Republican supporters say the lost revenue would be offset by increased development. It’s uncertain if companies would have an appetite for leases given the industry’s precipitous decline in recent years as utilities switched to cleaner burning fuels and renewable energy.
In a last-minute add, Republicans also included a provision authorizing sales of hundreds of thousands of acres of public lands in Nevada and Utah, prompting outrage from Democrats and environmentalists.
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Associated Press writers Collin Binkley in Washington and Matthew Brown in Billings, Montana, contributed to this report.
Kevin Freking And Lisa Mascaro, The Associated Press