One Big Beautiful Bill Act

Key provisions

• Tax Cuts Made Permanent
  • Individual tax rates of 10%–37% made permanent; estate tax exemption increased to $15M
  • Standard deduction raised to $15,750 for single filers and $31,500 for joint filers (inflation-adjusted)
  • Child tax credit increased to $2,200 per qualifying child; SALT deduction cap raised to $40,000 through 2029, reverting to $10,000 in 2030
• New Deductions for Workers
  • Up to $25,000 deduction for qualified tip income (2025–2028)
  • Up to $12,500 deduction for overtime compensation (2025–2028)
  • Up to $10,000 deduction for passenger vehicle loan interest (2025–2028)
  • New "Trump accounts" — tax-advantaged IRAs for under-18s with a one-time $1,000 government deposit for births in 2025–2028
• Border Security and Immigration Enforcement
  • $46.55B to U.S. Customs and Border Protection for physical barriers, technology, and access roads through FY2029
  • $45B to ICE for expanded detention capacity through FY2029
  • $29.85B to ICE for hiring, transportation, and removal operations through FY2029
  • New immigration court fees: $100 for asylum applications, $1,000 for parolees, $5,000 for individuals apprehended between ports of entry
• SNAP and Medicaid Changes
  • SNAP work requirements extended to adults up to age 65 (from 55); parents of children 14 and older must also meet requirements
  • States required to share 5–15% of SNAP benefit costs starting FY2028 based on payment error rate; federal admin cost share cut from 50% to 25%
  • Medicaid expansion enrollees must complete 80 hours per month of work or community service beginning in FY2027
  • Medicaid eligibility redetermined every six months for expansion population (previously annual)
• Defense and Security Investments
  • $29.18B for the shipbuilding industrial base and naval shipbuilding (FY2025)
  • $24.41B for space-based missile intercept and ground-based missile defense (FY2025)
  • $25.38B for hypersonic, cruise, and anti-ship missiles (FY2025)
  • $14.69B for nuclear forces and production, including B-21 bomber expansion (FY2025)
• Clean Energy Tax Credits Terminated
  • Consumer EV tax credit (up to $7,500) and used EV credit (up to $4,000) terminated October 1, 2025
  • Home energy efficiency credit (up to $3,200) and residential clean energy credit terminated 2026
  • Wind and solar clean electricity production and investment credits terminated for new projects after 2027
  • Clean hydrogen production credit terminated for projects starting construction after 2027
• Energy Production and IRA Rescissions
  • Oil and gas royalty rates reduced on federal lands; onshore lease sales resumed in specified states
  • ANWR: at least 4 lease sales within 10 years; NPR-A: at least 5 lease sales within 10 years
  • $389M for the Strategic Petroleum Reserve; repeals Biden-era drawdown requirement
  • Rescinds unobligated IRA funds for Greenhouse Gas Reduction Fund, school air quality, climate justice grants, and dozens of other EPA climate programs
• Student Loans and Education
  • Graduate PLUS loans eliminated for new loans on or after July 1, 2026
  • Aggregate student loan caps: $100,000 for graduate students, $200,000 for professional students, $257,500 lifetime limit
  • All current income-based repayment plans terminated for new loans; borrowers limited to standard plan or new Repayment Assistance Plan (RAP)
  • $10.5B in additional Pell Grant funding for FY2026; new Workforce Pell Grants for 150–600 clock-hour programs
• Debt Limit and Other Provisions
  • Statutory debt limit increased by $5 trillion
  • $24.59B to the Coast Guard for vessels, aircraft, and shore infrastructure through FY2029
  • $12.52B for FAA facilities modernization including $4.75B for telecom infrastructure and $3B for radar replacement
  • $9.995B to NASA for Moon and Mars missions and International Space Station deorbit