# 119-hr-1: One Big Beautiful Bill Act 119-hr-1, One Big Beautiful Bill Act, is a 119th Congress bill sponsored by Rep. Arrington, Jodey C. [R-TX-19] (R-TX); status became_law; PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/legislation/119-hr-1 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-1 - Congress: 119 - Title: One Big Beautiful Bill Act - Status: became_law - Introduced: 2025-05-20 - Sponsor: Rep. Arrington, Jodey C. [R-TX-19] (R-TX) - Cosponsors: 0 - Policy area: Economics and Public Finance - Touches household money: yes - Last recorded action: 2026-10-17 ## Summary **A major, multi‑title federal spending, tax, and policy package** that reshapes agriculture and nutrition rules, pours large sums into defense and border security, and remakes many tax and clean‑energy incentives across dozens of programs. ## Votes | Date | Chamber | Question | Result | Yea | Nay | | --- | --- | --- | --- | --- | --- | | 2025-07-03T00:00:00.000Z | house | On Motion to Concur in the Senate Amendment | Passed | 218 | 214 | | 2025-07-01T11:56:00.000Z | senate | On Passage of the Bill H.R. 1 | Bill Passed | 50 | 50 | | 2025-07-01T11:49:00.000Z | senate | On the Motion (Bennet Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 47 | 53 | | 2025-07-01T02:36:00.000Z | senate | On the Motion (Warnock Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 48 | 51 | | 2025-07-01T01:56:00.000Z | senate | On the Motion (Wyden Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T23:35:00.000Z | senate | On the Motion (Motion to Waive Section 425(a)(2) of the CBA re: H.R. 1) | Motion Agreed to | 51 | 48 | | 2025-06-30T23:23:00.000Z | senate | On the Motion (Padilla Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T22:02:00.000Z | senate | On the Motion (Schiff Motion to Commit H.R. 1 to the Committee on Agriculture, Nutrition, and Forestry with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T21:37:00.000Z | senate | On the Motion (Duckworth Motion to Commit H.R. 1 to the Committee on Agriculture, Nutrition, and Forestry with Instructions) | Motion Rejected | 49 | 51 | | 2025-06-30T20:15:00.000Z | senate | On the Motion (Hassan Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 48 | 52 | | 2025-06-30T19:45:00.000Z | senate | On the Motion (Gallego Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T19:14:00.000Z | senate | On the Motion (Blumenthal Motion to Commit H.R. 1 to the Committee on Armed Services with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T18:35:00.000Z | senate | On the Motion (Kaine Motion to Commit H.R. 1 to the Committee on Homeland Security and Governmental Affairs with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T14:24:00.000Z | senate | On the Motion (Blunt Rochester Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 48 | 52 | | 2025-06-30T13:18:00.000Z | senate | On the Motion (Reed Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 48 | 52 | | 2025-06-30T12:52:00.000Z | senate | On the Motion (Lujan Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 49 | 51 | | 2025-06-30T12:23:00.000Z | senate | On the Motion (Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 48 | 52 | | 2025-06-30T12:00:00.000Z | senate | On the Motion (Wyden Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-30T11:06:00.000Z | senate | On the Motion (Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 49 | 51 | | 2025-06-30T10:44:00.000Z | senate | On the Motion (Schumer Motion to Commit H.R. 1 to the Committee on Finance with Instructions) | Motion Rejected | 47 | 53 | | 2025-06-28T19:31:00.000Z | senate | On the Motion to Proceed H.R. 1 | Motion to Proceed Agreed to | 51 | 49 | | 2025-05-22T00:00:00.000Z | house | On Passage | Passed | 215 | 214 | | 2025-05-22T00:00:00.000Z | house | On Motion to Recommit | Failed | 212 | 216 | ## Provisions PRIA read - Changes to SNAP benefits and work rules: benefit, high. Every October 1 starting in 2025, the Thrifty Food Plan is updated for inflation using CPI‑U. A full re‑evaluation cannot happen before October 1, 2027 and cannot raise the plan’s cost. More people are exempt from ABAWD work rules, including those under 18 or over 65, pregnant women, parents of kid… - HSAs can cover direct primary care: benefit, high. For months after Dec 31, 2025, you can treat up to $150 per month per person ($300 if the arrangement covers more than one person) in direct primary care fees as HSA‑qualified medical expenses. The arrangement must be limited to primary care services. Caps are inflation‑adjusted. - Payments for Manhattan Project exposure: benefit, high. If you lived at least 2 years after Jan 1, 1949 in a listed ZIP code in MO, TN, AK, or KY and later got a listed disease, you can file a claim. Living claimants get the greater of $50,000 or documented out‑of‑pocket medical costs submitted by Dec 31, 2028. If deceased, a surviving spouse gets $25,0… - More money behind Pell Grants: benefit, high. The law raises the Pell shortfall amount to $12.67 billion. The old number was $2.17 billion. This boosts the funding baseline used for Pell Grants, helping keep grant money available for eligible college students. - New income‑based student loan payments: benefit, high. Monthly payments are based on your adjusted gross income using a set table. The base is $120 if AGI is $10,000 or less, then 1%–10% of AGI as income rises. Your monthly payment equals the base divided by 12 minus $50 per dependent, but not less than $10. For partial financial hardship rules, the ap… - Bigger break on small-business stock gains: benefit, high. For qualified small‑business stock bought on or after enactment, you can exclude 50% of gain after 3 years, 75% after 4 years, and 100% after 5 years. The per‑issuer cap is $10,000,000 for stock bought on or before enactment and $15,000,000 for stock bought after enactment. The $15,000,000 cap is i… - Bigger charity write-off for non-itemizers: benefit, high. If you do not itemize, you can claim a larger charitable deduction. For tax years after December 31, 2025, single filers can deduct $1,000 and married couples filing jointly can deduct $2,000. - Bigger deduction for whaling support: benefit, high. If you pay qualifying expenses to support Native Alaskan subsistence whaling, you can deduct up to $50,000 per year (up from $10,000). This applies to tax years starting after December 31, 2025. - Deduct interest on car loans: benefit, high. For loans taken on or after Jan 1, 2025 and before 2029, you can deduct up to $10,000 of interest each year on a qualifying passenger vehicle assembled in the U.S. The deduction drops by $200 for each $1,000 your modified AGI is over $100,000 ($200,000 if joint). You must include the VIN. Some loan… - Disaster loss rules use new date: benefit, high. The law resets a key disaster‑loss date to this section’s enactment date. This lets more people use special casualty‑loss rules for a different period. Homeowners and renters with eligible losses can benefit. - More 529 uses and ABLE rollovers: benefit, high. The law lets you use 529 money for many K–12 costs after enactment, like tuition, books, some tutoring, and certain therapies. Starting with tax year 2026, the annual K–12 limit rises from $10,000 to $20,000. You can also use 529 funds for recognized credential programs, testing fees, and required… - More student loan tax relief: benefit, high. Employer payments on your student loans stay tax‑free for payments made after December 31, 2025. The two $5,250 limits remain and are indexed for cost of living starting in tax years after 2026. If your loans are discharged for death or total and permanent disability after December 31, 2025, that a… - More tax‑free dependent‑care help: benefit, high. The tax‑free cap for employer‑provided dependent‑care benefits rises to $7,500 per year. The separate‑filer amount rises to $3,750. This applies to tax years starting after December 31, 2025. - Refundable adoption credit up to $5,000: benefit, high. Starting with tax years after December 31, 2024, up to $5,000 of the adoption tax credit is refundable. Key dollar amounts are indexed for inflation. Tribal governments can make special‑needs determinations. The refundable part does not count toward carryforward. - Saver’s credit now counts ABLE: benefit, high. Contributions to ABLE accounts count for the saver’s credit for tax years ending after December 31, 2025. The maximum saver’s credit increases from $2,000 to $2,100 for tax years beginning after December 31, 2026. This can raise your credit if you qualify. - Spread tax on farm land sales: benefit, high. If you sell qualified farmland to a qualified farmer, you can elect to pay the income tax on the gain in four equal yearly installments. The first payment is due with the return for the sale year. The land must have been used mainly for farming for the prior 10 years and carry a 10‑year non‑farm‑us… - Tax break for overtime pay: benefit, high. Starting with 2025 taxes, you can deduct up to $12,500 of qualified overtime pay each year ($25,000 on a joint return). The deduction drops by $100 for every $1,000 your modified AGI is over $150,000 ($300,000 if married filing jointly). You must list a Social Security number to claim it, and emplo… - Tax break for tipped workers: benefit, high. Starting with 2025 taxes, if your job is on Treasury’s list of tip‑based jobs as of Dec 31, 2024, you can deduct up to $25,000 of tips. The deduction falls by $100 for every $1,000 your modified AGI is over $150,000 ($300,000 if married filing jointly). You must list Social Security numbers and, if… - Tax‑free employer money for Trump accounts: benefit, high. Employer contributions to your Trump account (and for a dependent) are excluded from income, up to $2,500 per year per employee. After 2027, the $2,500 limit is indexed and rounded to the next lowest $100. The employer must run a separate written plan that meets the law’s rules. - Bigger Section 179 expensing limit: benefit, high. The Section 179 expensing limit rises to $2,500,000. The phase‑out now starts at $4,000,000. These amounts apply to property placed in service in tax years beginning after December 31, 2024. - Instant expensing for sound recordings: benefit, high. You can elect to expense up to $150,000 of qualified sound recording production costs made and recorded in the U.S. Costs above that are not eligible under this election. This applies to productions that start in tax years ending after enactment. - Larger employer child care tax credit: benefit, high. Employers get a 40% credit for qualified child care spending, or 50% for eligible small businesses. The annual cap is $500,000, or $600,000 for eligible small businesses, with indexing after 2026. The credit applies to amounts paid or incurred after December 31, 2025, and includes contracts with in… - Stronger farm support through 2031: benefit, high. Price Loss Coverage and other references are updated through 2031. ARC payments rise to 12% of benchmark revenue for 2025–2031, and benchmark rules are updated. Dairy Margin Coverage now uses your highest milk marketings from 2021–2023 and raises the payment cap to $6,000,000. If at least 75% of yo… - Bigger credit for agri‑biodiesel producers: benefit, high. Eligible small agri‑biodiesel producers get a $0.20 per‑gallon tax credit for fuel sold or used after June 30, 2025. This is in addition to any clean fuel credit for the same gallon, if sourced as required. - Immediate write‑off for domestic R&D: benefit, high. Businesses can deduct domestic research and experimental costs in the year paid or incurred. Software development counts as R&D. You may instead elect to amortize over at least 60 months. This applies to tax years starting after December 31, 2024. Eligible small businesses can elect retroactive app… - Build more fighter and support aircraft: benefit, high. FY2025 funds increase aircraft production and prevent certain retirements through September 30, 2029. Examples: $3.15 billion for F‑15EX, $361.22 million to prevent F‑22 retirement, $440 million for C‑130J, and $678 million for Collaborative Combat Aircraft. - DOJ funds immigration and prosecutions: benefit, high. The Department of Justice gets $3.33 billion for FY2025, available through September 30, 2029. Funds add immigration judges and support staff, fight drug trafficking, and prosecute immigration‑related crimes. It boosts state and local grants tied to violent‑crime and immigration enforcement and fun… - Funds for air and missile defenses: benefit, high. For FY2025, the law funds space sensors, intercept capabilities, and other missile defense programs. For example, $7.2 billion goes to space‑based sensors and $5.6 billion to intercept capabilities. Money remains available through September 30, 2029. - $1 billion for water projects: benefit, high. Interior gets $1 billion in FY2025 for Bureau of Reclamation work to restore or increase capacity at water conveyance and storage sites. Money stays available through September 30, 2034. Funds are not reimbursable and do not require matching. - Big funding to upgrade Coast Guard: benefit, high. The law provides $24.59 billion to the Coast Guard for FY2025, available through September 30, 2029. It funds new ships, aircraft, and shore facilities and speeds up buying. Examples include $4.3 billion for Offshore Patrol Cutters and $4.379 billion for shore facilities. - Billions to modernize air traffic control: benefit, high. The FAA gets multi‑billion funding in FY2025 to upgrade telecom, radar, displays, and weather systems, and to consolidate facilities. Key items include $4.75 billion for telecom, $3.0 billion for radar, and $1.9 billion for a new ARTCC. Funds are available through September 30, 2029. The FAA must r… - More money for troops and families: benefit, high. For FY2025, the law funds military quality of life and benefits through September 30, 2029. It includes $2.9 billion to boost housing allowance and $2 billion for the Defense Health Program. It also funds childcare fee help, unaccompanied housing, base support, bonuses, lodging allowances, and comm… - Big funding for rural health systems: benefit, high. The law provides $10 billion each year from 2026 through 2030 (total $50 billion) for state rural health plans. States must apply by Dec 31, 2025. Half of each year’s funds are split equally, and half are awarded by CMS under set criteria. Up to 10% can go to administration. CMS also gets $200 mill… - DOE funds AI‑ready science data: benefit, high. The Department of Energy gets $150 million to prepare scientific data for AI and start AI model projects. Funds are available through September 30, 2026. The data and models are provided to researchers through the American science cloud. - More funding for military readiness: benefit, high. The law funds FY2025 readiness, depot maintenance, spares, and facility upgrades through September 30, 2029. Examples include $1.4 billion for a maritime spares pilot, $2.118 billion for Air Force spares, $1.5 billion for Army depots, and $2 billion for Navy depots and shipyards. - More timber sales and long contracts: benefit, high. From fiscal 2026 to 2034, the Forest Service must sell 250 million more board‑feet each year than the year before, subject to plan limits. The BLM must sell 20 million more board‑feet each year. The Forest Service must enter at least 40 long‑term (20+ years) timber sale contracts in FY2025–2034; BL… - Nuclear forces and NNSA funding: benefit, high. The law funds the Department of Defense and the National Nuclear Security Administration for FY2025, with money available through September 30, 2029. Items include $2.5 billion for Sentinel ICBM risk reduction and $4.5 billion to expand B‑21 production, plus NNSA facility and modernization work. So… - Stronger defense industrial base and loans: benefit, high. For FY2025, the law adds billions for munitions and critical‑minerals capacity and creates capital assistance. It provides $3.3 billion for Industrial Base Fund grants and purchase commitments and $5 billion for critical‑minerals investments. It also provides $500 million to subsidize loans and gua… - Fund SPR maintenance and oil purchases: benefit, high. The law provides $218 million to maintain Strategic Petroleum Reserve sites and $171 million to buy oil in FY2025. The money is available through September 30, 2029. It also repeals a prior SPR drawdown‑and‑sale rule. - Loans to keep the power grid reliable: benefit, high. The law provides $1 billion to support projects that ensure enough electric supply for grid reliability. Funds are available through September 30, 2028. Up to 3% may pay administrative costs. Related commitment authority is extended through 2028. - NASA gets $10B for Mars and Moon: benefit, high. NASA receives $9,995,000,000 for fiscal year 2025, available through September 30, 2032. Funds back a Mars telecom orbiter due by December 31, 2028, the Gateway program, and Space Launch System work for Artemis IV and V. At least half the money must be obligated by September 30, 2028, and all by Se… - More federal oil and gas leasing: benefit, high. The Interior Department must hold many new onshore and offshore lease sales on fixed schedules, including the Gulf and Alaska. Each Gulf sale must cover large acreage, and Alaska’s Coastal Plain must have at least four large sales on a timeline. Leasing in the National Petroleum Reserve‑Alaska resu… - Higher cap for housing tax credits: benefit, high. The increase in the state Low‑Income Housing Tax Credit ceiling is made permanent for years after 2025, with the factor set to 1.12. The law also clarifies when tax‑exempt bond financing counts toward credit tests, including cases where at least 50% of basis is bond‑financed or at least 25% is bond… - Big defense funds for contractors: benefit, high. For FY2025, with funds available through September 30, 2029, the law funds defense innovation and scaling. Examples: $1.4 billion for small drones, $1.685 billion for cryptography, and $90 million for accelerators and cybersecurity help. It adds $1 billion to a DOD credit account that can back up t… - Bigger credit for advanced factories: benefit, high. The advanced manufacturing investment tax credit rises to 35% for qualified property placed in service after December 31, 2025. - Full first‑year write‑offs for assets: benefit, high. Businesses can permanently deduct 100% of the cost of qualifying property acquired after Jan 19, 2025 in the first year. A special election allows lower first‑year percentages for the first tax year ending after that date. A new rule also lets eligible taxpayers fully expense designated production… - New Markets Tax Credit is permanent: benefit, high. The New Markets Tax Credit continues every calendar year after 2019. Unused allocations can carry over only up to five years, with older excess treated as 2025 for this rule. The change applies to calendar years after December 31, 2025. - HSAs allowed with Bronze or catastrophic plans: benefit, medium. If you have a Bronze or catastrophic plan on the Exchange, it now counts as a high‑deductible health plan for HSA rules. You can open or contribute to an HSA for months after December 31, 2025. - New path to expand home care: benefit, medium. Starting July 1, 2028, states can run a standalone home‑ and community‑based services waiver without requiring a nursing‑home level‑of‑care test. Waivers last 3 years and can be renewed for 5 years. States must set needs‑based rules, limit average costs, and avoid longer waits for those who qualify… - More authority for military housing deals: benefit, medium. The military can enter more contracts with private companies to build or acquire unaccompanied housing. The authority now applies across the services and runs through September 30, 2029. The changes take effect at enactment, with up to three fiscal years to transition. - Easier income-based payments and second rehab: benefit, medium. The government can now use your IRS return to set your income-based payment automatically, with an opt‑out and a chance to update the data. If your AGI is missing or not current, you can give other proof of income to set your payment. The Department of Education gets $1 billion to support loan serv… - New funds for farm research and scholarships: benefit, medium. The law moves $37 million to a food and agriculture research foundation. It funds $60 million in FY2026 scholarships at 1890 land‑grant colleges and $8 million for assistive technology for farmers with disabilities in FY2026. It adds $175 million for specialty crop research in FY2026 and $125 milli… - Higher 1099-K threshold returns: benefit, medium. Payment platforms report your sales only if you have more than $20,000 in total payments and more than 200 transactions in a calendar year. The same two thresholds apply for backup withholding. This rule applies to calendar years starting after December 31, 2024. - Higher aid for textile mills: benefit, medium. Economic‑assistance payments to textile mills increase to $0.05 per eligible pound beginning August 1, 2025. The prior rate was $0.03 through July 31, 2025. - Higher farm support prices and loans: benefit, medium. Starting with the 2025 crop year, the law sets new reference prices (for example: wheat $6.35/bu, corn $4.10/bu, soybeans $10.00/bu, peanuts $630/ton). Beginning in 2031, each year’s reference price equals last year’s times 1.005, capped at 113% of the 2025 value. For 2026–2031, marketing assistanc… - More base acres and farm payments: benefit, medium. USDA adds up to 30,000,000 new base acres across eligible farms using 2019–2023 planting history. Owners can opt out within 90 days. If eligible acres exceed 30 million, allocations are cut pro rata. Starting with the 2026 crop year, payment yields are set by farm or county rules. For the 2025 crop… - More funding for specialty and dairy: benefit, medium. USDA funding rises for key programs. Plant pest and disease management is $90 million in FY2026. Specialty crop block grants are $100 million in FY2026. The Organic Production and Market Data Initiative gets $10 million for FY2026–2031. The law also provides $50 million from the Commodity Credit Co… - Easier accounting for home builders: benefit, medium. The law broadens which residential construction contracts can use the percentage‑of‑completion exception. Many residential contracts now use a 3‑year lookback instead of 2 years. This applies to contracts entered into in tax years beginning after enactment. - Higher 1099 threshold for payers: benefit, medium. The 1099 reporting threshold rises from $600 to $2,000 for payments made after December 31, 2025. Starting in 2027, it increases each year with inflation, rounded to the nearest $100. - More funding for animal disease control: benefit, medium. The law provides $233 million each year for 2026 through 2030 for animal disease prevention and management. Each year, at least $10 million, $70 million, and $153 million go to the specified subsections. From FY2031 on, $75 million is provided each year, with at least $45 million for subsection (b)… - ORR funds to vet child sponsors: benefit, medium. The Office of Refugee Resettlement gets $300 million for FY2025, available through September 30, 2028. The money pays for background checks, interviews, home studies, and data systems to spot exploitation and trafficking. ORR also coordinates with State child‑welfare agencies. - Treasury funds Trump Accounts pilot: benefit, medium. The Treasury receives $410 million to run the Trump Accounts contribution pilot. Funds are available until September 30, 2034. This pays for setup and operations described in the law. - Funding to modernize DoD systems: benefit, medium. The law funds DoD efforts to speed up audits and strengthen cybersecurity through September 30, 2029. It provides $150 million for business systems, $200 million for automation and AI, $10 million for budget infrastructure, and $20 million for DARPA cybersecurity. - Some fuel‑economy fines set to $0: benefit, medium. Certain civil penalty amounts in the fuel‑economy law are set to $0 for affected model years. This applies where the Transportation Secretary has not issued the specified notification. - Faster approvals and more coal leases: benefit, medium. Interior must quickly allow mining on certain federal coal sites with already‑approved plans near state or private coal. It must also fast‑track qualified coal lease applications within 90 days. Within 90 days, at least 4 million more federal acres must be offered for coal leasing, excluding listed… - More funding for Defense Production Act: benefit, medium. The government provides $1 billion for FY2025 to carry out the Defense Production Act. The money is available until September 30, 2027 to support priority production and supply chains. - States and counties share renewables money: benefit, medium. Starting January 1, 2026, payments from renewable projects on federal land are split. States receive 25% and counties get 25% based on the land source. County payments are on top of PILT. Money collected in one fiscal year is paid the next year. - Tax-exempt bonds now cover spaceports: benefit, medium. The law lets state and local issuers use tax‑exempt private‑activity bonds for spaceports, like airports. A spaceport includes facilities at or near launch or reentry sites used for manufacturing or repair, flight control, launch or reentry services, or crew or cargo transfer. The facility does not… - Temporary 7% cap on coal royalties: benefit, medium. Beginning on enactment and ending September 30, 2034, coal leases pay a royalty rate of no more than 7%. Outside this period, the general statutory rate is 12.5%. The cap applies to coal leases under the Mineral Leasing Act that have not ended, including older leases. Lessees who paid advance royal… - More private investment in military housing: benefit, medium. From enactment through September 30, 2029, the allowed private investment share in certain privatized military housing projects is 60%. This replaces earlier limits of 33 1/3% and 45% set in law. The defense department officials use this authority for eligible projects. This temporarily allows a la… - More sales count for corporate deduction: benefit, medium. Certain income and gains from sales or other dispositions of intangible property, and of property you depreciate or amortize, now count as deduction‑eligible income under corporate section 250. The Treasury can set exceptions. This applies to sales or dispositions after June 16, 2025. - Tax break for rural real estate loans: benefit, medium. Qualified lenders can exclude 25% of interest on new loans secured by rural or agricultural real estate, including aquaculture and seafood processing facilities. The rule applies to loans made after enactment and to tax years ending after enactment. Certain foreign borrowers and some refinancings a… - RECA claims allowed through 2027: benefit, low. You can file claims under Section 8(a) of the Radiation Exposure Compensation Act through December 31, 2027. The law sets this fixed filing deadline. - Medicare doctor pay up 2.5% in 2026: benefit, low. Medicare increases doctor payments by 2.5% for services in 2026. This applies from January 1, 2026 through December 31, 2026. - Telehealth allowed in HSA plans: benefit, low. If your high‑deductible health plan waives the deductible for telehealth, it still counts as an HDHP. Your HSA eligibility is preserved. This applies to plan years starting after Dec 31, 2024. - More hazardous‑duty areas for pay: benefit, low. Hazardous‑duty treatment is now permanent and covers Kenya, Mali, Burkina Faso, and Chad, in addition to the Sinai. This applies when you are entitled to special duty pay. The change takes effect January 1, 2026. - Refund when dyed fuel leaves terminals: benefit, low. If you remove eligible indelibly dyed diesel fuel or kerosene from a terminal, Treasury pays you an amount equal to the tax described in the law. This applies to fuel removed on or after 180 days after enactment. You must prove the removal, and excessive claims face penalties. - Zero excise tax on most firearms: benefit, low. For calendar quarters starting more than 90 days after enactment, the excise tax is $200 for machineguns or destructive devices and $0 for other firearms. The same split applies to transfers and to making a firearm. - More oversight of defense programs: benefit, low. The Defense Inspector General gets $10 million for FY2025, available through September 30, 2029. The funds support monitoring of programs, including tech dependencies, data management, and supply‑chain risks. - Repairs and security at Kennedy Center: benefit, low. The law provides $256,657,000 in FY2025 to the Kennedy Center, available through September 30, 2029. The funds cover capital repairs, backlog work, and security structures. Up to 3% may be used for admin costs. - Tax‑exempt status for western Alaska fisheries: benefit, low. Certain nonprofits in western Alaska can treat fisheries activities as tax‑exempt. Covered work includes harvesting, processing, transport, sales, and marketing in the Bering Sea and Aleutian areas. Transfers of a related business from a wholly owned subsidiary to the parent within 18 months of ena… - Higher cover‑over on distilled spirits: benefit, low. Territorial governments receive $13.25 per gallon for distilled spirits brought into the U.S. This applies to spirits brought in after December 31, 2025. - More clean energy income for partnerships: benefit, low. Publicly traded partnerships can treat more clean‑energy receipts as qualifying income. Covered items include certain fuel transport and storage, hydrogen, carbon‑oxide facilities, advanced nuclear power, and specified energy property. This applies to tax years after December 31, 2025. - REITs can hold more in TRSs: benefit, low. Real estate investment trusts can hold up to 25% of assets in taxable REIT subsidiaries, up from 20%. This applies to tax years beginning after December 31, 2025. - Fee after in‑absentia removal arrest: cost, high. If you were ordered removed in absentia and are later arrested by ICE, you must pay a fee of at least $5,000 in FY2025. From FY2026, the fee adjusts yearly by July CPI and rounds to the nearest $10 down. Fifty percent of fees go to an ICE detention account. No waivers are allowed. The fee does not… - Fee for arrests between ports of entry: cost, high. If you are an inadmissible alien apprehended between ports of entry, you must pay a fee of at least $5,000 in FY2025. From FY2026, the fee adjusts yearly by July CPI and rounds to the nearest $10 down. The law directs 50% to an ICE account and also contains language sending fees to the Treasury. - Medicaid work rules for adults: cost, high. States must require many non‑exempt adult Medicaid expansion enrollees to complete at least 80 hours per period of work, community service, or schooling to keep eligibility. There is a 30‑day cure period and many listed exceptions. The rule starts by the first quarter after Dec 31, 2026 unless a st… - Tighter Medicaid, Medicare, SNAP rules for noncitizens: cost, high. Starting October 1, 2026, federal Medicaid payments cover only citizens and specific lawful statuses listed in the law. SNAP eligibility is also limited to these statuses, and income from ineligible members can still count. For tax years after 2025, you cannot claim the Premium Tax Credit for perio… - Aid cut for low‑earning programs: cost, high. Starting July 1, 2026, programs whose recent graduates earn less than comparable workers for at least 2 of the past 3 years can lose access to federal student aid. Schools get notice and can appeal, and must warn students when a program is at risk. Programs can regain eligibility after at least 2 y… - Tighter grad loans and $10 minimum: cost, high. Starting July 1, 2026, grad and professional students can no longer get Grad PLUS loans. Annual federal loan caps are $20,500 for most grad students and $50,000 for professional students. Parent PLUS is capped at $20,000 per year and $65,000 total per dependent. No student can borrow more than $257… - Big business loss limit stays: cost, high. The cap on excess business losses for noncorporate taxpayers is now permanent. You cannot use very large business losses to fully offset other income for tax years after December 31, 2026. Amount adjustments apply for years after December 31, 2025. - Charity write-offs now have a floor: cost, high. If you itemize, you can deduct only the part of your charitable gifts that is above 0.5% of your contribution base. Disallowed amounts can be carried forward under updated rules. This starts for tax years after December 31, 2025. - Unspent environmental funds are canceled: cost, high. The law rescinds unobligated balances for many listed environmental and related programs. This reduces money available for Clean Air Act grants, NOAA programs, diesel emissions reductions, low‑carbon transportation materials grants, and other named efforts. - Advanced manufacturing credit narrowed and phased: cost, high. The 45X credit tightens. Secondary parts must have at least 65% U.S. content. Credits for many critical minerals phase down: 75% in 2031, 50% in 2032, 25% in 2033, and 0% after 2033. No credit for wind components made and sold after December 31, 2027, or for metallurgical coal after December 31, 20… - Carbon capture credit limits for foreign ties: cost, high. Specified foreign or foreign‑influenced taxpayers cannot claim the 45Q carbon sequestration credit for tax years after enactment. The law also sets dollar‑amount schedules, such as $17 for years beginning after 2024 and before 2027, with inflation adjustments after 2026 and special substitutions in… - Clean hydrogen credit ends after 2027: cost, high. The clean hydrogen production credit no longer applies for production after January 1, 2028. Projects counting on the credit beyond that date lose the subsidy. - Corporate charity deductions face new limits: cost, high. Corporations can deduct charitable gifts only above 1% of taxable income and no more than 10% of taxable income. Excess amounts can carry forward up to five years under coordination rules. This applies to tax years starting after December 31, 2025. - Energy credit transfers barred to foreign entities: cost, high. Eligible taxpayers cannot transfer certain energy credits to specified foreign entities. Also, the Advanced Energy Project credit program is not increased under the prior subsection. These rules apply from enactment and limit who can buy credits and the program’s growth. - Higher tax on big college endowments: cost, high. Private colleges with at least 3,000 tuition‑paying students and large endowments pay an excise tax on net investment income. Rates are 1.4%, 4%, or 8% based on endowment per student. Net investment income includes interest from school‑made student loans and some federally supported royalty income.… - Nuclear credit limited for foreign ties: cost, high. Specified foreign entities cannot claim the zero‑emission nuclear power production credit for tax years after enactment. Foreign‑influenced entities cannot claim it starting two years after enactment. - Pay cap split across related companies: cost, high. For publicly held companies in a controlled group, the $1,000,000 deduction limit on pay is allocated across group members. Each member’s limit equals its share of the covered employee’s total pay across the group. This applies to tax years starting after December 31, 2025. - Smaller corporate section 250 deductions: cost, high. For tax years beginning after 2025, the section 250 deduction for certain income drops. A 37.5% deduction becomes 33.34% and a 50% deduction becomes 40%. - Tighter clean energy credits and end dates: cost, high. Wind and solar facilities placed in service after December 31, 2027 no longer get the clean electricity production credit. Projects that begin construction after 2025 and use material help from a prohibited foreign entity are excluded. Domestic‑content thresholds rise by construction date, and some… - Tighter clean‑energy credit limits: cost, high. Energy projects face year‑by‑year thresholds for foreign material assistance starting with projects that begin after Dec 31, 2025. Falling below a year’s threshold can block credits. If you claimed a section 48E clean energy investment credit and make a prohibited payment to a foreign entity within… - New asylum application and work fees: cost, medium. Asylum applicants must pay a filing fee at filing and an annual fee for each year the case is pending. In FY2025 each is at least $100 and rises with inflation after that. An initial asylum work permit costs at least $550 in FY2025 and adjusts yearly. Renewing an asylum‑based work permit costs at l… - New parole and parolee work fees: cost, medium. Parolees must pay a parole fee of at least $1,000 in FY2025, with limited exceptions like medical emergencies. An initial parolee work permit costs at least $550 in FY2025 and lasts one year or the parole period, whichever is shorter. Renewing parole‑based work authorization costs at least $275. Fr… - Higher fines for de minimis imports: cost, medium. If you import goods under the de minimis rule and break customs law, you can be fined. The first fine can be up to $5,000. Later fines can be up to $10,000 each. This starts 30 days after enactment. The law also ends a commercial‑shipment exception on July 1, 2027. - Marketplace premium credits: tighter rules: cost, medium. For tax years after 2025, the old cap on repaying advance Premium Tax Credit amounts is removed. Also, coverage you enroll in only through an income‑based special enrollment period (not tied to a qualifying life event) does not qualify for the Premium Tax Credit for plan years starting after Decemb… - One‑year limit on some Medicaid providers: cost, medium. For one year from enactment, federal direct‑spending Medicaid funds cannot pay certain 501(c)(3) family‑planning providers that perform abortions, except for rape, incest, or to save the mother’s life, and that had over $800,000 in combined Medicaid spending in FY2023. Payments made directly or by… - Tighter checks on marketplace subsidies: cost, medium. For tax years after 2027, Exchanges must verify eligibility before a month counts for coverage or advance premium tax credits. They must verify income, family size, immigration status, coverage status, and residence, and can use third‑party sources. Pre‑enrollment verification must be available by… - 1% tax on cash remittances: cost, medium. A 1% tax applies to money transfers funded with cash, money orders, cashier’s checks, or similar instruments for transfers after Dec 31, 2025. Transfers funded from a bank account or with a U.S. debit or credit card are exempt. Providers must collect and send the tax. - Longer IRS window for certain errors: cost, medium. The IRS can assess a tax shortfall tied to a specific determination up to six years after you file. This longer window applies only to that kind of error. - More nonprofit pay faces excise tax: cost, medium. More employees of tax‑exempt organizations are treated as “covered employees” for the excess compensation excise tax. If you worked for an applicable tax‑exempt organization in any year after December 31, 2016, you can be included. This applies to tax years starting after December 31, 2025. - Stronger penalties on some energy credits: cost, medium. If you claim certain energy credits and overstate a project’s material assistance cost ratio, the substantial‑understatement test uses 1% instead of 10%. That makes penalties more likely. This applies to specified credits and tax years after enactment. - Tighter rules for ACA premium credits: cost, medium. Only certain lawfully present noncitizens can get the Premium Tax Credit. Eligible groups are lawful permanent residents, Cuban or Haitian entrants, and Compact of Free Association residents. You must be expected to stay in that category for your whole enrollment period. These eligibility changes s… - Stiffer IRS penalties for bad claims: cost, medium. COVID‑ERTC promoters face a $1,000 penalty per failure to meet due‑diligence rules. Credits or refunds for ERTC claims filed after January 31, 2024 are disallowed, and the IRS has 6 years to assess. A separate penalty applies when false supplier certifications cause energy‑credit disallowance and a… - Lower funding cap for CFPB: cost, medium. The statutory number used to calculate the Consumer Financial Protection Bureau’s funding cap is reduced from 12 to 6.5. This lowers the ceiling for how much the Bureau can receive each year. - Medicaid demos must be budget‑neutral: cost, medium. Starting Jan 1, 2027, CMS cannot approve section 1115 demonstrations unless the CMS Chief Actuary certifies they will not raise federal spending compared to no project. CMS gets $5 million in each of 2026 and 2027 to implement the certification process. - States pick up more SNAP admin costs: cost, medium. Through FY2026, the federal government pays 50% of SNAP administrative costs. Starting in FY2027, the federal share drops to 25%. This may shift more cost to states and affect program operations. - Cuts to unspent green and tech funds: cost, medium. The law cancels $850 million in unspent CHIPS Act wireless funds. It repeals the Greenhouse Gas Reduction Fund and rescinds any unobligated money that was set aside for it. It also rescinds unspent aviation clean‑fuel grant funds. These balances are no longer available. - New yearly fees on federal renewables: cost, medium. Renewable projects on Federal and National Forest land must pay yearly acreage rent and a capacity fee. Acreage rent uses the five‑year State pasture rent average times an encumbrance factor and grows by 3% each year of the term. The capacity fee is the larger of acreage rent or 3.9% of gross elect… - Travel Promotion Fund cut by $80M: cost, medium. The annual transfer to the Travel Promotion Fund drops from $100 million to $20 million. That is $80 million less each year for travel promotion. - More drugs shielded from Medicare price talks: cost, medium. More drugs keep orphan status for negotiation rules if they treat one or more rare diseases. Former orphan drugs are timed as if they lost orphan status on the first day after approval when they no longer qualify. This applies to initial price years starting January 1, 2028. - New per‑launch fees for space firms: cost, medium. Starting in 2026, each licensed launch or reentry pays the smaller of a per‑pound rate or a fixed annual fee. The schedule runs from $0.25/lb or $30,000 in 2026 up to $1.50/lb or $200,000 in 2033, then rises with inflation. Seventy percent of fees go to the FAA Office for licensing and permitting w… - New filing rules for Opportunity Funds: cost, medium. Qualified Opportunity Funds must file an annual machine‑readable return with detailed investment and jobs data. Penalties for missing or incomplete returns are $500 per day up to $10,000 (or up to $50,000 if assets exceed $10 million). Intentional disregard raises the per‑day penalty to $2,500. Amo… - New rules for multinational tax credits: cost, medium. For tax years starting after December 31, 2025, the law changes how deductions and taxes are assigned to foreign‑source CFC tested income for the foreign tax credit limit. Interest and research costs cannot be allocated to that foreign income. Some deductions that would have reduced foreign income… - ESTA fee rises and adjusts yearly: cost, low. The ESTA authorization fee includes at least $13 per application in fiscal 2025. Starting in fiscal 2026, it adjusts each year by the July Consumer Price Index change. The fee authority runs through October 31, 2034. - Fee for Special Immigrant Juvenile status: cost, low. Applying for Special Immigrant Juvenile status costs at least $250 in FY2025. Starting in FY2026, the fee increases each year with inflation and rounds down to the nearest $10. There are no fee waivers. - New travel and visa fees: cost, low. EVUS enrollment costs at least $30 in FY2025 and adjusts each year, rounded to $0.25. A Form I‑94 application costs at least $24 in FY2025 and adjusts yearly, rounded down to the nearest dollar. A nonimmigrant visa integrity fee of at least $250 applies at visa issuance in FY2025 and then adjusts y… - TPS application fee set at $500: cost, low. The Temporary Protected Status application fee is $500 at enactment. It can go up each year with inflation and is rounded down to the next $10. No fee waivers are allowed. Fees go to the Treasury. - No unemployment checks for $1M earners: cost, low. If your base‑period wages are $1,000,000 or more, federal funds cannot pay your unemployment benefits for weeks starting on or after enactment. Applications must include your self‑certification of wages. States must try to verify wages and recover any overpayments. - Minimum fees to store forfeited sugar: cost, low. Starting with the 2025 crop year, storage fees for forfeited sugar have minimum monthly rates. Refined sugar is at least $0.34 per hundredweight per month. Raw cane sugar is at least $0.27 per hundredweight per month. - States must check deceased providers: cost, low. Starting Jan 1, 2028, states must check the Death Master File when enrolling or revalidating Medicaid providers and suppliers. States must recheck at least every three months while a provider stays enrolled. - New IRS report for car‑loan interest: cost, low. If your business gets $600 or more in a year from an individual's passenger‑vehicle loan interest, you must file an information return. Report the payer’s name and address, total interest, starting principal, origination date, and the vehicle’s year, make, model, and VIN. Give a written statement t… - New lease payments for DC airports: cost, low. The Metropolitan Washington Airports Authority must pay the Treasury using a set formula. For 1987–2026, payments equal $3,000,000 in 1987 dollars (using the GNP Price Deflator). For 2027 and later, payments equal $15,000,000 in 2027 dollars. The parties must renegotiate at least every 10 years. - Obesity prevention grants end after 2025: cost, low. The National Education and Obesity Prevention Grant is only authorized for FY2016 through FY2025. After 2025, the statute no longer provides ongoing authorization for new grants under this program. - Unspent parks and lands funds canceled: cost, low. Unobligated balances for certain National Park Service and Bureau of Land Management programs are rescinded. This reduces future grant or subsidy money under those sections. - Changes to Medicaid back pay and costs: mixed, high. Medicaid retroactive coverage is shorter. Expansion adults get coverage from the month before they apply. Others get coverage starting the second month before application. These timing rules apply beginning the first quarter after December 31, 2026. Starting October 1, 2028, states cannot charge pr… - More Medicaid checks and data matching: mixed, high. States must check Medicaid expansion enrollees’ eligibility every 6 months for reviews scheduled on or after the first quarter after Dec 31, 2026. Starting Jan 1, 2027, states must review Social Security death records at least quarterly and end coverage after a verified death, with retroactive rest… - Pell and aid rules change in 2026: mixed, high. Starting July 1, 2026, you cannot get a Pell Grant for a year if your Student Aid Index is at least twice that year’s maximum Pell amount. You also cannot get a Pell Grant for any period when your non‑Federal grants equal or exceed your cost of attendance. At the same time, the aid formula stops co… - Child care credit phases by income: mixed, high. The child and dependent care credit starts at 50% of qualifying costs. For tax years after December 31, 2025, it drops 1 point for each $2,000 of AGI (or part) over $15,000, but not below 35%. It then drops again by 1 point for each $2,000 over $75,000 (or $4,000 steps over $150,000 on a joint retu… - Education tax changes for families: mixed, high. K–12 scholarships from qualified organizations are not taxable for amounts received after Dec 31, 2026. To claim the American Opportunity or Lifetime Learning Credits for years after 2025, you must include Social Security numbers. For AOTC, you must also report the school’s EIN. - Higher SALT cap with income phase‑down: mixed, high. The SALT deduction cap is $40,000 for 2025 and $40,400 for 2026. It rises by 1% yearly through 2029, then returns to $10,000 after 2029. For years before 2030, reduce the cap by 30% of your MAGI over thresholds ($500,000 in 2025; $505,000 in 2026; then 1% yearly increases), but not below $10,000. M… - New child accounts and $1,000 deposit: mixed, high. You can open a new “Trump account” for a minor. Starting 12 months after enactment, you can add up to $5,000 per year before age 18 (indexed after 2027). Investments are limited to low‑fee index funds and most withdrawals are blocked until the year the child turns 18. For tax years after 2025, you… - New options for paid leave credit: mixed, high. Employers can now claim the paid family and medical leave credit based on either wages paid during leave or on insurance premiums. Qualifying employees generally must work at least 20 hours per week, and employers can choose a 6‑month minimum employment period. Related employers are treated as one… - Opportunity Zones: faster taxes, new boosts: mixed, high. Deferred gain invested in a Qualified Opportunity Fund is now included in income at the earlier of sale or 5 years after investing. If you hold at least 5 years, your basis increases by 10%, or by 30% for Qualified Rural Opportunity Funds. Zone designations follow a July 1, 2026 decennial date and… - CMS rule changes paused until 2034: mixed, high. HHS cannot put three specified CMS rules into effect until September 30, 2034. The paused rules involve Medicaid/CHIP/BHP application and renewal, Medicare Savings Program enrollment, and some long‑term care staffing rules. Congress also provided $1 million in FY2026 for the Medicare Savings Progra… - New caps and audits in Medicaid financing: mixed, high. States’ directed payments are capped at 100% of Medicare rates if the state expanded, and 110% if not. Older approved payments can continue but must drop by 10 percentage points each year starting January 1, 2028. Provider‑tax rules are clarified, and the hold‑harmless percent drops over time to 3.… - More spectrum auctions and studies: mixed, high. The law keeps FCC auction power through September 30, 2034 and sets a plan to open more airwaves. The FCC must auction at least 300 MHz, including 100 MHz in the 3.98–4.2 GHz band within 2 years. Commerce must find 500 MHz for reallocation or sharing (200 MHz in 2 years, the rest in 4 years). The P… - Clean fuel credit tightened and extended: mixed, high. The clean fuel production credit now lasts through December 31, 2029. For fuel produced after December 31, 2025, the government rounds emissions rates to the nearest 5 kg CO2e per mmBTU and generally bars negative rates, except special rates for animal‑manure fuels. Fuel must use feedstock grown or… - International tax rules overhauled: mixed, high. The law changes how and when U.S. owners include foreign income and how some income is sourced. It revises Subpart F timing, aligns tested‑income timing, and limits some downward attribution. It creates a new category for foreign‑controlled U.S. shareholders, makes the look‑through rule permanent,… - International tax: more credit, higher BEAT: mixed, high. The deemed‑paid foreign tax credit percentage rises to 90% for tax years after December 31, 2025. Separately, 10% of certain foreign taxes tied to amounts excluded under section 959(a) by reason of 951A(a) are not creditable for amounts after June 28, 2025. The base erosion minimum tax rate increas… - Older rules return for loan relief: mixed, medium. Starting on enactment, for loans that first originate before July 1, 2035, the Education Department uses the borrower‑defense and closed‑school discharge rules that were in effect on July 1, 2020. The Nov 1, 2022 rules do not apply to those loans. - Student loan help and new limits: mixed, medium. The law expands the Repayment Assistance Plan. When you make an on-time payment, unpaid interest for that month is not added. If your on-time payment (and you are not in deferment or forbearance) reduces principal by less than $50, the government adds up to $50 toward principal each month. These pa… - New business interest limit rules: mixed, medium. Trailers and campers now count as floor‑plan financed inventory for the business interest limit, starting in tax years after 2024. For tax years after 2025, adjusted taxable income must include certain foreign income inclusions and related deduction portions. Also after 2025, the interest limit app… - DoD support for border operations: mixed, medium. The Department of Defense gets $1 billion for FY2025, available through September 30, 2029, to support border operations. Funds cover deployments, operations and maintenance, counter‑narcotics support, work in national defense areas, and temporary migrant detention on DoD sites. - Pay to speed environmental reviews: mixed, medium. Project sponsors can choose to pay the Council on Environmental Quality a fee equal to 125% of the expected review cost. CEQ must set the fee within 15 days of receiving your project details. If you pay, CEQ must finish an environmental assessment in 180 days and an impact statement in one year. - SNAP costs tied to state error rates: mixed, medium. Starting in FY2028, the federal share of certain SNAP costs depends on a state’s payment error rate. Under 6% gets 100% federal pay; 6%–<8% gets 95%; 8%–<10% gets 90%; 10% or more gets 85%. For FY2028, a state can use its FY2025 or FY2026 rate. Later years use the rate from three years earlier. - New offshore lease rules and timelines: mixed, medium. Offshore lease royalty rates must be between 12.5% and 16 2/3%. Leases in waters 800 meters or deeper get a 10‑year primary term. The law also extends a Clean Air Act reference period to calendar year 2034. - Updated rules for partner payments: mixed, low. The partnership rule on payments for services or property now uses new statutory wording for items after enactment. It does not change how payments before enactment are treated. Partnerships should apply the updated text for work or property provided after the law took effect. - Funds to update noncitizen Medicaid rules: mixed, low. CMS receives $15 million in fiscal year 2026, available until spent, to carry out changes to Medicaid eligibility for aliens. ## Related bills - 119-hr-4317: PBM Reform Act of 2025 - 119-hr-2395: SHORT Act - 119-hr-1262: Mikaela Naylon Give Kids a Chance Act - 119-hr-21: Born-Alive Abortion Survivors Protection Act - 119-hr-10357: Digital Asset Tax Certainty Act - 119-hr-1383: Secure Rural Schools Reauthorization Act of 2025 ## Sources - [119-hr-1 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/1) ## Related - [119-hr-4317: PBM Reform Act of 2025](https://policyrisk.com/legislation/119-hr-4317) - [119-hr-2395: SHORT Act](https://policyrisk.com/legislation/119-hr-2395) - [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262) - [119-hr-21: Born-Alive Abortion Survivors Protection Act](https://policyrisk.com/legislation/119-hr-21) - [119-hr-10357: Digital Asset Tax Certainty Act](https://policyrisk.com/legislation/119-hr-10357) - [119-hr-1383: Secure Rural Schools Reauthorization Act of 2025](https://policyrisk.com/legislation/119-hr-1383) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-1 (as of 2026-10-17).