The GOP megabills is going for a vote in the House

A House Bill to Reconstruct the Tax Deduction Under President Donald W.M.T.’s Trump’s Campaign for Responsible Elections

The package will be pushed through Congress using a special process called budget reconciliation that allows them to get around a filibuster and win approval without a single Democratic vote. But with tiny majorities in both chambers, they can afford to lose no more than three Republican votes in both the House and the Senate if all Democrats oppose it, as expected, and every member is present and voting.

The bill includes temporary changes designed to make good on several of Trump’s campaign pledges, including no taxes on overtime earned between 2026 and 2028. The plan would also allow Americans to deduct interest on car loans — but only if the car is made in the U.S. Only people with Social Security numbers would be eligible for the increase in the child tax credit. With inflation, it would grow up to $2,000 after that. It would allow for a higher standard deduction through 2028, and to deliver on Trump’s pledge not to tax Social Security benefits, the bill would allow for an extra $4,000 deduction for people over the age of 65, but it phases out for people at higher incomes.

The reductions would last only through 2028, as would a $1,000 addition to the standard deduction and a $500 bonus to the child tax credit, which now maxes out at $2,000. Children born over the next four years would receive $1,000 deposited in a so-called “MAGA account” that is invested in the stock market.

Businesses would receive several tax cuts, including valuable deductions for research and investment spending, as well as a new tax break for building factories. A deduction available to the owners of many businesses would become slightly more generous and be extended indefinitely.

What’s in the GOP megabill that’s headed for a vote in the House? Updated legislation on SALT and the Supplemental Nutrition Assistance Program

The updated legislation came at the end of a day of near-constant negotiations within the GOP. The talks included a White House meeting on Wednesday afternoon between Trump, House Speaker Mike Johnson, R-La., and several holdouts and skeptics.

The bill will need nearly unanimous support from his members in order to be passed and it could face further challenges in the Senate. Democrats are expected to vote against the bill together.

One of the thorniest issues during negotiations has been the state and local tax deduction, also known as SALT. The deduction is hugely important to a small number of GOP lawmakers from blue states with high taxes, like California and New York. The deduction for state taxes was capped at $10,000. The House plan would lift the cap to $40,000 for married couples with incomes up to $500,000.

The Republican legislation also outlines reforms for the Supplemental Nutrition Assistance Program, known as SNAP, which benefits more than 40 million low-income Americans. Able-bodied people who don’t have dependents are required to work if they want to stay in the program. Many people could lose their coverage as a result of these changes. Like with Medicaid talks, some Republican lawmakers have pushed back against massive changes to SNAP given its wide reach and the millions enrolled in the program.

The legislation also zeroes in on what Republicans characterize as “waste fraud and abuse” within the program by shifting the enrollment period from once a year to every six months and adding additional income and residency verifications for enrolled individuals.

Source: Here’s what’s in the GOP megabill that’s headed for a vote in the House

The Clock is Tilting: The U.S. Will Run Out of Money by the August 1st Congressional Budget Cuts

The House bill would raise the nation’s debt limit by $4 trillion. Lifting the debt limit does not authorize new spending. The government can use the money to pay for programs Congress has authorized. If the cap isn’t lifted and the government can’t meet its obligations, then it will be at risk of default – a scenario that economists say would be catastrophic not just for the U.S., but the global financial system as a whole. Treasury Secretary Scott Bessent has told Congress that without action, the U.S. will run out of money to pay its bills as soon as August, which means the clock is ticking.