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HR1119th CongressWALLET

An act to provide for reconciliation pursuant to title II of H. Con. Res. 14.

Sponsored By: Representative Arrington

Became Law

Summary

A household-budget shakeup - changing how much help some families get for groceries, and for parents, reshaping the child tax credit and child/dependent care breaks that can move refund sizes and take-home pay, while also tightening some energy incentives and immigration fees and pumping new money into defense, border operations, health, and student aid.

Show full summary
  • Grocery help & eligibility: Updates the formula used to set SNAP (food stamp) benefits and tweaks work/utility rules—so benefit amounts could shift for some households. It also tightens eligibility for certain immigrants.
  • Refunds for families: Reworks key family tax breaks—especially the child tax credit and child/dependent care credits—which could change the size and timing of tax refunds (and in some cases take-home pay) for parents.
  • Energy bills & “made in America” rules: Scales back or ends several clean-energy and manufacturing tax credits and adds tougher domestic-content/foreign-entity limits—changes that can ripple into utility rates, home-upgrade costs, and where new jobs/investment land.
  • New fees + big funding shifts: Sets new immigration service fee schedules and moves major federal dollars toward defense, border operations, health, and student aid—reshaping who pays fees and where government spending shows up.

*Raises federal borrowing authority by 5 trillion dollars, and potentially more budget pressure later.*

Bill Overview

Analyzed Economic Effects

185 provisions identified: 104 benefits, 46 costs, 35 mixed.

More housing and health support for troops

DoD gets multi‑year funding to improve quality of life for service members and families. It includes $2.9 billion to supplement Basic Allowance for Housing, $2.0 billion for the Defense Health Program, $1.0 billion for unaccompanied housing, $100 million for tuition assistance, $100 million for child care fee help, and other items. Funds remain available until September 30, 2029.

$100,000 payments for some RECA claims

If you qualify for a RECA atmospheric‑testing leukemia or specified‑disease claim and no prior payment was made, you can receive $100,000. This is a one‑time payment.

Bigger SNAP help and clearer utility rules

SNAP benefits use the 2021 Thrifty Food Plan with fixed household size ratios and get CPI‑U increases each October starting 2025. The ABAWD time‑limit rule does not apply if you are under 18, age 65+, pregnant, medically unfit for work, care for a child under 14, or meet the listed Indian definitions. Households with an elderly or disabled member qualify for the standard utility allowance, and the law clarifies how outside energy help is counted.

Payments for Manhattan Project exposure

If you lived at least two years after January 1, 1949 in listed ZIP codes and later got a listed disease, you can file a claim. Living claimants get at least $50,000, or more if documented medical and other eligible losses are higher. Surviving spouses of deceased individuals get $25,000, or children share $25,000 if no spouse. Medical bills must be submitted by December 31, 2028 to be reimbursed. The Attorney General must certify identity and eligibility.

Bigger charity write‑off for non‑itemizers

If you do not itemize deductions, you can deduct more cash gifts to charity. The cap is now $1,000 if single and $2,000 if married filing jointly. This applies to tax years starting after December 31, 2025.

Bigger child tax credit

The law raises the Child Tax Credit to $2,200 per child for tax years starting after December 31, 2024. Your tax return must list the required Social Security numbers for you (or one spouse on a joint return) and each child. Those SSNs must be issued before the return due date or the credit is not allowed.

Bigger deduction for Alaskan whaling

Supporters of Native Alaskan subsistence whaling can deduct more of their qualifying costs. The cap rises from $10,000 to $50,000 for tax years beginning after December 31, 2025.

Bigger gain exclusion for QSBS

For qualified small business stock bought after enactment, you can exclude 50% of gain if held 3 years, 75% if 4 years, and 100% if 5+ years. The per‑issuer cap rises to $15,000,000 for stock acquired after enactment and is indexed after 2026. Applies to tax years after enactment.

Bigger tax break for dependent care

For tax years starting after 2025, you can exclude up to $7,500 from income for employer‑provided dependent care ($3,750 if married filing separately). This is up from $5,000 ($2,500 MFS).

Bigger, partly refundable adoption credit

Up to $5,000 of the adoption tax credit is refundable for tax years after 2024. The $5,000 limit will adjust for inflation. Tribal governments can certify a child’s special needs for this credit starting in 2025.

Child care credit starts at 50%

The child and dependent care credit percentage is 50% for low-income filers. It drops by 1 point per $2,000 of AGI over $15,000, but not below 35%. It drops again above $75,000 ($150,000 joint), but not below 20%. These rules apply for tax years after 2025.

Deduction for car loan interest

You can deduct interest on a qualified passenger vehicle loan taken after December 31, 2024 for tax years 2025–2028. The yearly cap is $10,000 and is reduced by $200 per $1,000 (or part) your income exceeds $100,000 (single) or $200,000 (joint). The car must be assembled in the U.S., be first‑lien financed, and you must list the VIN on your tax return. Fleet, commercial non‑personal, lease financing, salvage, and scrap vehicles do not qualify.

Easier disaster loss write‑offs

You can claim casualty losses when your Governor (or D.C. Mayor) declares a State disaster. This includes fires, floods, or explosions and covers U.S. territories. A timing fix keeps certain 2020 disaster tax rules usable. These changes apply to tax years after 2024.

Federal credit for SGO donations

You can claim a nonrefundable federal tax credit up to $1,700 each year for cash gifts to an eligible Scholarship Granting Organization. The credit is reduced dollar‑for‑dollar by any State tax credit for the same gift. States list eligible SGOs; organizations must meet strict rules. This applies to tax years ending after December 31, 2026.

Higher 529 plan yearly limit

The annual limit for certain 529 plan distributions doubles from $10,000 to $20,000. This applies to tax years beginning after December 31, 2025. Account owners and beneficiaries can use up to $20,000 per year for the distributions covered by this rule.

Higher estate and gift exemption

The estate and gift tax basic exclusion amount rises from $5,000,000 to $15,000,000 per person. This applies to estates of decedents dying and gifts made after December 31, 2025.

Higher standard deduction amounts

Standard deduction amounts used by the law increase for tax years beginning after December 31, 2024. The old $18,000 and $12,000 amounts are replaced with $23,625 and $15,750. A higher standard deduction lowers your taxable income and can reduce your bill in the 2025 filing year.

HSA help for direct primary care

Direct primary care (DPC) fees count as HSA‑eligible medical expenses for months after December 31, 2025. You can count up to $150 per month for one person or $300 per month if one DPC arrangement covers more than one person. DPC must be paid as a fixed periodic fee and cover primary care only.

K-12 scholarships not taxable income

If you or your child receives a scholarship from an eligible Scholarship Granting Organization for qualified K–12 expenses, that money is not taxable. This applies to amounts received after December 31, 2026.

More student loan tax relief

Employer student loan payments are tax‑free permanently for payments after December 31, 2025. The $5,250 limit grows with inflation for years after 2026. If a loan is discharged for death or total and permanent disability after December 31, 2025, it is not taxable income when you include your SSN on your return.

More ways to use 529 and ABLE

You can use 529 money for recognized credential programs and more K–12 costs. You can roll 529 funds into an ABLE account for tax years starting after 2025. Starting with tax years ending after 2025, ABLE contributions count as qualified retirement savings. The Saver’s Credit maximum rises from $2,000 to $2,100 for tax years beginning after 2026.

Mortgage insurance now counts as interest

Starting in 2026, mortgage insurance premiums count as mortgage interest for the home interest deduction rules. If you itemize and pay mortgage insurance, this can lower your taxable income.

Moving tax break for intel workers

If you work in the intelligence community and must relocate for an assignment, you get moving‑expense tax treatment. This applies to tax years beginning after 2025.

Pay farm sale taxes in installments

If you sell qualified farmland to a qualified farmer, you can elect to pay the resulting federal tax in four equal annual installments. Attach the 10‑year non‑farm use covenant and make the election by your return due date for the year of sale. Unpaid installments accelerate if you are delinquent, die (for individuals), or the selling corporation liquidates or is sold. Applies to sales in tax years after enactment.

PTC allowed when Medicaid barred

For tax years after 2025, people who cannot get Medicaid due to immigration rules can claim the health Premium Tax Credit. This can lower monthly premiums during those periods.

Tax break for cash tips

You can deduct up to $25,000 of qualified cash tips for tax years 2025 through 2028. The deduction drops by $100 for each $1,000 your income exceeds $150,000 (single) or $300,000 (joint). Tips must be reported on required statements or Form 4137, and your job must have customarily received tips on or before December 31, 2024. Include your Social Security number on your return.

Tax break for overtime pay

You can deduct qualifying overtime pay for tax years 2025 through 2028. The cap is $12,500 for single filers and $25,000 for joint filers. The deduction is cut by $100 for each $1,000 your income exceeds $150,000 (single) or $300,000 (joint). Your W‑2 must report the overtime, and you must list your Social Security number on your return.

Tax-free employer Trump account money

Employer contributions to a qualifying Trump account are excluded from your income up to $2,500 per year starting after December 31, 2025. The limit can rise with inflation after 2027. The employer must offer a written program that meets the law’s rules.

More crop insurance help and higher caps

Crop insurance subsidies rise for several tiers, cutting farmers’ net premiums. Farmers can buy higher coverage: up to 85% for individual, 90% for aggregated individual, and 95% for area plans. Farm program payment caps increase to $155,000 per person starting with the 2025 crop year and will adjust each year for inflation. The “beginning farmer” definition is broadened (numeric test raised from 5 to 10), and dairy program thresholds rise from 5,000,000 to 6,000,000.

More help after livestock losses

Producers can get two monthly Livestock Forage Disaster Program payments instead of one. Indemnities pay 100% of market value for predation losses and 75% for weather or disease. Eligibility rules for grazing are broadened based on weeks in the county. The Secretary may consider regional price premiums.

More money for farm conservation

The law sets specific conservation funding for FY2026–FY2031. It provides set amounts each year, including $625 million in 2026, rising to $700 million in 2029–2031, plus larger multi‑year authorizations and counterpart allocations across those years.

Bigger employer credit for paid leave

Starting in 2026, eligible employers can choose a credit on wages paid during leave or a credit on paid‑leave insurance premiums. New aggregation rules apply, and state‑mandated leave can count. Qualifying employees generally must work at least 20 hours per week.

Bigger expensing and fewer 1099 forms

Small businesses can expense more under section 179: the cap is $2.5 million with phase‑out starting at $4 million, for property in service in tax years starting after 2024. For payments made after December 31, 2025, the 1099 reporting threshold rises from $600 to $2,000, with annual inflation adjustments after 2026.

Bigger meal write‑offs for fishing

For amounts after 2025, meals on qualifying fishing vessels or in remote fish processing facilities north of 50°N (not in a metro area) get a larger deduction. This eases taxes for eligible fishing and processing operations.

Dealers: trailers count for floor‑plan

For tax years after 2024, dealers can treat financing for towable trailers and campers (built for temporary living) as floor‑plan financing. This can improve interest deduction limits for qualifying businesses.

Minimum deduction for pass‑through businesses

For tax years starting after 2025, the 199A phase‑in thresholds rise to $75,000 (single) and $150,000 (joint). If your total qualified business income is at least $1,000, your 199A deduction is at least $400, with both amounts indexed after 2026.

Tax relief for Alaska fisheries nonprofits

Certain western Alaska nonprofits and their subsidiaries can treat fisheries activities as related to their exempt purpose. If a wholly owned subsidiary transfers the business assets to the nonprofit within 18 months, no gain is recognized, and income from the transferred business is tax‑exempt while the program exists.

Tax write-off for sound recordings

If you produce and record a sound recording in the U.S., you can deduct up to $150,000 of production costs each tax year under section 181. These productions are treated as qualified property for bonus depreciation and placed in service at initial release. Applies to productions starting in tax years ending after enactment.

Event security and Secret Service bonuses

FEMA grants fund state and local security through September 30, 2029: $500 million for drone defense, $625 million for the 2026 World Cup, $1 billion for the 2028 Olympics, and $450 million for Operation Stonegarden. Some event funds skip certain usual grant rules. The Secret Service gets $1.17 billion through September 30, 2029 for staff, training, technology, and bonuses. Retention bonuses require two more years of service, and signing bonuses require a five‑year commitment with written agreements.

$1 billion for water storage projects

Interior receives $1 billion in FY2025, available through September 30, 2034, to restore or increase capacity of Reclamation conveyance and surface water storage. The funds are not reimbursable and need no cost sharing.

Billions to modernize air traffic control

The FAA gets multi‑billion‑dollar funding through FY2029 to modernize telecom and radar, build a new control center, realign at least 10 centers, and upgrade TRACONs. The FAA must report to Congress within 180 days and every 90 days.

FEMA funds for Presidential home security

FEMA gets $300 million to reimburse State and local agencies for extra police costs tied to Secret Service protection at the President’s designated private homes. Costs must be over normal operations, directly tied to protection, and incurred on or after July 1, 2024. Funds are available through September 30, 2029. FEMA may use up to 3% to run the grants.

Funds to refill and fix oil reserve

The government provides $218 million in FY2025 to maintain Strategic Petroleum Reserve sites and $171 million to buy oil. The funds are available until September 30, 2029. This supports emergency fuel supplies and stability.

More money for flood and watershed work

Starting in FY2026, annual watershed protection funding rises to $150 million per year. The money stays available until spent.

Big grants to improve rural health

CMS gets $10 billion each year from 2026 through 2030 for State rural health plans. States must apply by December 31, 2025. Half of the money is split equally among approved States; half is distributed by formula. No State match is required. Unspent funds return by October 1, 2032.

Freeze on new Medicaid enrollment rules

HHS is barred from implementing or enforcing several April 2, 2024 CMS rules that would change Medicaid, CHIP, and Basic Health Program application, eligibility, enrollment, and renewal processes. The moratorium runs from enactment through September 30, 2034.

More Pell money to prevent shortfalls

The law raises the Pell shortfall appropriation to $12.67 billion. This helps keep Pell Grants funded and paid on time. The change takes effect upon enactment.

Big push to grow defense production

The law invests heavily in U.S. defense production and maintenance through September 30, 2029. It funds new tech and scaling (for example $1.4 billion for small drones, $1.0 billion for rapid procurement, and $2.0 billion for Defense Innovation Unit scaling), more aircraft and sustainment, and major depot upgrades. It expands shipbuilding and the industrial base (for example $4.6 billion for a Virginia‑class submarine and $5.4 billion for two destroyers). The Coast Guard gets $24.5935 billion for ships, aircraft, maintenance, and shore facilities. It also adds $3.3 billion for Industrial Base Fund grants, $5.0 billion for critical minerals, $500 million to support up to $100 billion in DoD‑backed loans, and $1.0 billion for Defense Production Act work.

Faster coal and Alaska oil leasing

Interior must finish key steps and hold lease sales within 90 days for qualified federal coal applications; NEPA review still applies. The law authorizes mining on certain federal tracts next to state or private reserves where a mining plan was already approved. It also requires at least four area‑wide Alaska Coastal Plain oil and gas lease sales within ten years, each offering at least 400,000 acres; the first sale must be within one year. For FY2025–FY2033, Alaska gets 50% of receipts; from FY2034 on, Alaska gets 70% (the rest goes to the Treasury).

More federal timber sales, long contracts

From FY2026 through FY2034, the Forest Service must raise annual timber sales so each year is at least 250 million board‑feet more than the prior year, subject to forest plans. From FY2025 through FY2034, the Secretary must enter at least 40 timber contracts of 20 years or more, with options to extend or renew. Money from these sales goes to the Treasury’s general fund.

More funding for Indo‑Pacific defense

The law strengthens U.S. activities in the Indo‑Pacific through September 30, 2029. It funds exercises and infrastructure (for example $365 million for Army exercises, $532.6 million for a large Pacific Air Force exercise, and $1.1 billion for infrastructure) and $1.0 billion for offensive cyber work. It also supports $3.65 billion for satellites and many missile and space‑defense efforts, including $250 million for directed energy testing, $500 million for space launch infrastructure, $5.6 billion for intercept development, and $7.2 billion for space sensors.

More money for nuclear forces

The law funds U.S. nuclear forces and NNSA work through September 30, 2029. It includes $2.5 billion for Sentinel ICB risk reduction, $4.5 billion to expand B‑21 production, and $2.0 billion for a sea‑launched cruise missile. It also supports multiple NNSA projects, including Phase 1 studies, deferred maintenance, construction acceleration, and warhead development acceleration.

NASA gets $10B for Moon and Mars

NASA gets $9.995 billion for FY2025 for Mars missions, Gateway, Artemis rockets, Orion, the ISS, and related facilities. $700 million must be obligated for a Mars telecom orbiter by FY2026. $2.6 billion goes to Gateway with at least $750 million obligated each year in FY2026–FY2028. $4.1 billion goes to the Space Launch System with at least $1.025 billion each year in FY2026–FY2029. At least 50% of funds must be obligated by September 30, 2028, 100% by September 30, 2029, and all outlays by September 30, 2034.

More funds for farm exports

Starting in fiscal year 2027, $285 million each year from the Commodity Credit Corporation supports the Supplemental Agricultural Trade Promotion Program. This funding backs agricultural export promotion on an ongoing basis.

Bigger credit for manufacturers

The Advanced Manufacturing Investment Credit increases from 25% to 35% for qualifying property placed in service after December 31, 2025. Businesses claim 35% of eligible costs for qualifying property.

Faster write-offs and R&D expensing

Businesses can deduct 100% of the cost of qualifying property bought after January 19, 2025. For the first tax year ending after that date, you may choose 40%, 60%, or 100% expensing. Domestic research costs are fully deductible for years beginning after December 31, 2024 (with an option to amortize 60+ months). A separate 100% allowance applies to qualifying U.S. production property begun after January 19, 2025 and placed in service before January 1, 2031, with a 10‑year recapture if it stops qualifying.

New Markets Tax Credit made permanent

The New Markets Tax Credit continues every year. Unused allocation cannot be carried forward beyond five years after the excess year. Excesses before 2026 are treated as occurring in 2025 for carryover timing. These rules start for calendar years after December 31, 2025.

Tax break for rural loan interest

Qualified lenders can exclude 25% of interest income from tax on eligible rural or agricultural real estate loans made after enactment. Loans must be secured by rural or agricultural property and not made to specified foreign entities. Certain refinances do not qualify for the new exclusion to the extent they refinance older loans.

Extension of lower individual income tax rates

The lower individual income tax rate structure is extended for tax years beginning after December 31, 2025, allowing many taxpayers to continue paying reduced rates.

High fees after border apprehensions

An inadmissible person caught between ports pays a fee of at least $5,000 in FY2025, indexed after 2025. A person ordered removed in absentia who is later arrested also pays at least $5,000, unless the order was rescinded. Fees cannot be waived.

Medicaid work and activity rules

States must require certain adults to meet 80 hours per month of work, training, or other activities to keep Medicaid. States must verify using available data, give a 30‑day cure period with continued coverage, and then deny or disenroll if not fixed. Many groups are exempt or deemed compliant. Rules start no later than the first quarter after December 31, 2026, with an interim final rule by June 1, 2026.

Stricter Medicaid and SNAP noncitizen rules

Starting October 1, 2026, federal Medicaid funds only cover care for citizens and certain listed lawful statuses who live in a State, DC, or a territory. CHIP is changed to follow this rule for most services. SNAP also tightens household eligibility to the same status list; the income and resources of someone made ineligible can still be counted for the household (States may deduct a pro rata share).

Loan caps set; Grad PLUS ends

Beginning July 1, 2026, new unsubsidized loan limits apply: up to $20,500 a year for graduate non‑professional students and $50,000 for professional students, with aggregate caps of $100,000 and $200,000. Parent PLUS borrowing is capped at $20,000 per year per dependent and $65,000 total. There is a lifetime cap of $257,500. Less‑than‑full‑time enrollment reduces annual limits, and schools can set lower limits. Also, graduate and professional students cannot get Direct PLUS loans for instruction starting on or after July 1, 2026, with a temporary exception for students enrolled by June 30, 2026.

Clean vehicle tax credits end 9/30/2025

You cannot claim the new clean vehicle credit for vehicles acquired after September 30, 2025. You also cannot claim the used clean vehicle credit for purchases after that date. Check your acquisition or purchase date to know if a credit applies.

Faster phaseout of the AMT break

If you are subject to the Alternative Minimum Tax, your AMT exemption phases out faster starting in 2026. The phaseout rate rises from 25% to 50%. That can raise your tax bill.

Home energy credits end soon

Home energy tax breaks wind down. The residential clean energy credit does not apply to spending after December 31, 2025. The home energy improvement credit only applies to property placed in service after December 31, 2025. The credit for alternative fuel refueling equipment ends for property placed in service after June 30, 2026. Check your spend and placed‑in‑service dates.

More IDs needed for education credits

To claim the American Opportunity or Lifetime Learning Credit for 2026 or later, you must include required Social Security numbers on your return. If the credit is for someone else, list their name and SSN. For the American Opportunity Credit, include the school’s EIN. Missing items are treated as math or clerical errors.

New cap on itemized deductions

High‑income itemizers face a new limit starting in 2026. Your itemized deductions are cut by 2/37 of the smaller of (1) your itemized deductions or (2) the amount your taxable income is above the 37% bracket threshold. This applies after other deduction limits.

New floor for charitable deductions

Starting in 2026, you can deduct charitable gifts only to the extent they exceed 0.5% of your contribution base. Ordering and carryforward rules apply. Smaller giving may no longer reduce your taxes.

PTC narrowed for many immigrants

Starting with plan years on or after January 1, 2027, only certain lawfully present immigrants qualify for the health Premium Tax Credit: lawful permanent residents, Cuban or Haitian entrants, and Compact of Free Association residents. Others lose eligibility and may face higher premiums.

Tighter limit on gambling loss write-offs

Starting in 2026, your deduction for wagering losses equals the smaller of 90% of your losses or your wagering gains. You cannot deduct more than you won.

Tighter rules for SEP enrollments

For plan years after 2025, Marketplace plans you enter through an income‑based special enrollment period that is not tied to a qualifying event may not count for Premium Tax Credit eligibility. You may lose the refundable credit and pay more for coverage.

Energy tax breaks shrink for builders

Several business energy tax benefits end or narrow. The commercial building energy deduction and the new energy‑efficient home credit end for projects that start after June 30, 2026. The business credit for commercial clean vehicles ends for purchases after September 30, 2025. Depreciation rules for certain energy property are tighter for construction beginning after December 31, 2024.

Cuts to IRA, CHIPS, and climate funds

The law cancels unspent money from parts of the Inflation Reduction Act and the CHIPS Act, and other listed programs. It also rescinds unspent funds for National Park Service, BLM, NOAA, and clean aviation technology. One named cut is $850 million from a CHIPS fund.

Per‑launch fees on commercial space

Each licensed launch or reentry in 2026 or later owes a fee equal to the smaller of the per‑pound rate for that year times payload weight, or that year’s fixed cap. For 2026, the law lists $0.25 per pound and a $30,000 cap. Rates and caps are set for 2026–2033 and rise with inflation from 2034 on. A new fund is created, and 70% of deposits are available for the Office without further appropriation.

Clean energy credits limited by foreign ties

Clean energy projects and parts do not qualify for major credits if there is material help from a prohibited foreign entity. Some bans apply to taxpayers that are foreign‑controlled or foreign‑influenced, with timing that varies by program. For nuclear power credits, specified foreign entities are barred for tax years after enactment; foreign‑influenced entities are barred two years after enactment.

Clean hydrogen credit ends in 2028

The clean hydrogen production credit now ends on January 1, 2028, instead of 2033. Projects have a shorter window to qualify.

Corporate charitable gifts capped and floored

For tax years after 2025, corporations can deduct gifts only above 1% of taxable income and up to 10% of taxable income. Extra amounts can be carried forward up to five years. Special rules apply with NOLs.

Higher U.S. taxes on foreign profits

Multinationals face tighter rules on income and deductions from foreign operations, mostly starting in 2026. The law lowers section 250 deduction rates and tightens expense apportionment, including for sales of intangible property. It renames GILTI as “net CFC tested income,” updates timing for subpart F inclusions, and repeals the one‑month deferral election for specified foreign corporations. Rules on allocation for the foreign tax credit apply to tax years beginning after 2025, and some sales rules apply to dispositions after June 16, 2025.

Smaller foreign tax credit in some cases

For foreign taxes paid or accrued after June 28, 2025 on certain previously taxed CFC amounts, 10% of the related foreign tax credit is disallowed. This raises U.S. tax for affected investors.

Tighter foreign‑content limits for clean energy

The law defines prohibited foreign, foreign‑influenced, and foreign‑controlled entities and sets phased percentage tests for material assistance and domestic content. Examples include a 40% threshold for qualified facilities beginning construction in 2026, 55% for energy storage in 2026, solar components at 50% in 2026 rising to 85% after 2029, and wind components at 85% in 2026 and 90% in 2027. Determinations are generally made on the last day of the taxable year. The Secretary must issue anti‑evasion guidance by December 31, 2026.

New limits and help for student loans

For loans first originated before July 1, 2035, the 2020 borrower‑defense rules apply, not the 2022 rules. For loans made on or after July 1, 2027, unemployment and economic‑hardship deferments end and forbearance is capped at 9 months in any 24‑month period. On‑time Repayment Assistance Plan payments count toward Public Service Loan Forgiveness. You can rehabilitate eligible loans twice, and starting July 1, 2027, borrowers with new Direct loans owe at least $10 per month. The Education Department also gets $1 billion to improve loan servicing.

Pell tests change for income and assets

Starting July 1, 2026, you cannot get a Pell Grant for a period when your non‑Federal grants meet or exceed your cost of attendance. For school years beginning on or after July 1, 2026, foreign income counts in Pell income tests for students (and spouses) and for parents of dependents. At the same time, financial aid asset calculations will no longer count the home family farm you live on, your family‑owned and controlled small business with 100 or fewer employees, or your family‑owned commercial fishing business.

SALT deduction limit changes by year

The SALT deduction cap rises to $40,000 for 2025 and $40,400 for 2026. It grows about 1% yearly through 2029, then returns to $10,000 after 2029. For years before 2030, the cap is reduced by 30% of your MAGI over the law’s threshold, but never below $10,000. These rules apply to tax years beginning after December 31, 2024.

Teachers can deduct more costs

Most itemized write‑offs that were paused stay ended starting in 2026. But teachers and some coaches get a broader educator expense deduction for classroom costs. Check if your role and purchases qualify.

Transit and parking tax rules change

The law restructures rules for qualified transportation fringe benefits starting in 2026. It changes how these benefits coordinate with other tax rules. Employers and workers may see different tax treatment of transit and parking.

Big boost for border security and detention

The law pours money into border operations and detention. CBP gets $4.1 billion for hiring and training, $2.053 billion for bonuses, $855 million for vehicles, and $5 billion for facilities through September 30, 2029; none of these funds can recruit processing coordinators after October 31, 2028. ICE gets $45 billion to expand single‑adult and family detention, with family detention allowed while cases proceed; funds last through September 30, 2029. DHS gets $10 billion to reimburse partners who support border missions, and DoD gets $1 billion for border support and temporary migrant detention on DoD sites, both through September 30, 2029. A new $10 billion State Border Security Reinforcement Fund gives grants for barriers, personnel, transfers to DHS, and related work; applications open within 90 days and funds last through September 30, 2034.

Billions for border barriers and tech

CBP gets $46.55 billion in FY2025 for barriers, access roads, sensors, lights, and ground work, available until September 30, 2029. It also gets $6.168 billion for screening and inspection tech, biometrics, air and marine platforms, and initial child screenings. Funds cannot be used for untested autonomous surveillance towers.

Grants repay states’ immigration costs

The DOJ creates a reimbursement fund of up to $3.5 billion, available until September 30, 2028. States and localities can get grants for immigration‑related law enforcement work, detention, transport, and related court costs. Grants can cover costs back to January 20, 2021.

More funds and rules for justice

The Bureau of Prisons gets $5 billion for fiscal year 2025 through September 30, 2029, with at least $3 billion for hiring, training, and pay, and up to $2 billion for repairs. DOJ gets $3.33 billion for immigration courts, prosecutions, drug enforcement, and law‑enforcement grants; some grants cannot fund community violence prevention and require compliance with 8 U.S.C. 1373. Some states can get compensated for incarcerating certain criminal noncitizens, subject to limits. ORR gets $300 million through September 30, 2028 to vet sponsors, run home studies, conduct exams, cover tattoos while in care, upgrade data systems, and work with state child welfare agencies. The courts get $1.25 million each year from 2025–2028 to study non‑party relief orders and costs, and $1 million each year to train judicial staff, including on why non‑party relief claims lack authority.

More onshore and offshore oil lease sales

Interior must resume quarterly onshore oil and gas lease sales and run a set schedule of Gulf of Mexico sales through 2040. Gulf sales must offer at least 80 million acres and set royalties between 12.5% and 16 2/3%. Cook Inlet sales are scheduled and must offer at least 1 million acres. Permits to drill last 4 years, and commingling is allowed only with tight measurement rules.

Federal debt limit raised $5 trillion

The federal borrowing limit increases by $5 trillion, allowing the government to continue meeting obligations while expanding overall federal debt capacity.

Changes to low‑income housing tax credit

For buildings placed in service in tax years starting after 2025, a numeric factor changes from 1.125 to 1.12. The special rule for tax‑exempt bond‑financed portions is modified for projects with at least 50% bond financing, or at least 25% with new bonds that finance at least 5% of basis. These changes affect how credits are calculated.

Clean energy credits reshaped and tightened

The law reshapes clean‑energy manufacturing and power credits. It adds a 2.5% credit for metallurgical coal and doubles the small agri‑biodiesel credit to $0.20 per gallon, while extending the clean fuel credit to December 31, 2029. It tightens rules by blocking credits for some foreign‑linked taxpayers, raising U.S.‑content thresholds, capping an advanced energy program’s capacity, and ending most wind and solar credits for property placed in service after December 31, 2027. It sets new dollar amounts for carbon capture and allows inflation adjustments. Several provisions take effect starting in 2025–2027; check each project’s construction and placed‑in‑service dates.

New AMT rules for drilling costs

For tax years after 2025, the law changes how companies treat intangible drilling and development costs when computing adjusted financial statement income. It revises how depreciation, depletion, and expensing are reflected for this calculation.

Opportunity Zones overhauled

Zone designations are re‑checked every 10 years starting July 1, 2026. Zones last 10 years after certification, and the low‑income test changes. A special Puerto Rico rule ends December 31, 2026. Gain deferral and inclusion timing rules are updated.

Caps on Medicaid expansion cost sharing

Starting October 1, 2028, States cannot charge enrollment fees or premiums for adults in Medicaid expansion. Many services, like primary care and mental health care, are exempt from cost sharing. For other services, the per‑item cap is $35 and total family cost sharing cannot exceed 5% of family income over the State’s chosen period (monthly or quarterly). Providers may collect at service but can waive charges case‑by‑case.

SNAP work rule relief in Alaska, Hawaii

If you live in a noncontiguous State, your State can ask to exempt you from SNAP ABAWD work rules. The Agriculture Secretary must find a good‑faith plan and the State must file quarterly reports. Any exemption ends by December 31, 2028 unless ended earlier.

Workforce Pell for short programs

Beginning with the award year that starts July 1, 2026, eligible students can get Workforce Pell Grants for short programs. Programs must run 150 to under 600 hours (8 to under 15 weeks), be certified by the Governor for in‑demand fields, and show at least 70% completion and 70% job placement after 180 days. You cannot get Workforce Pell and regular Pell for the same period.

Set marketing loan rates, 2026–2031

For crop years 2026–2031, marketing assistance loans remain available with fixed per‑unit loan rates. Examples include wheat at $3.72/bushel, corn at $2.42/bushel, upland cotton at $0.55/pound, extra long staple cotton at $1.00/pound, peanuts at $390/ton, rice at $7.70/cwt, and soybeans at $6.82/bushel.

$1,000 per child Trump account payment

For children born after December 31, 2024 and before January 1, 2029, you can file an election that triggers a one‑time $1,000 payment to that child’s Trump account. The child must be a U.S. citizen, and you must include the child’s Social Security number. False or improper elections can be penalized. Funding is available through September 30, 2034.

Most firearm transfer taxes set to $0

For each transfer or making of a machinegun or a destructive device, the tax is $200. For other firearms, the tax is $0 per transfer or making. These rates apply to calendar quarters starting more than 90 days after enactment.

Cotton and rice loan support changes

Producers of long and medium grain rice and upland cotton can repay marketing loans at the lower of the loan rate or the world market price. For upland cotton, a refund may apply based on world prices in the 30 days after repayment. Cotton storage payments for 2026–2031 are capped at $4.90 per unit in California or Arizona, and $3.00 elsewhere. The government will also adjust the prevailing world price for extra long staple cotton to reflect U.S. quality and shipping costs, with added adjustment authority through July 31, 2032.

Farm ARC and PLC payment updates

Through 2031, ARC uses full benchmark revenue with a 10% payment factor for 2014–2024, then 90% of benchmark with a 12% payment factor for 2025–2031. For the 2025 crop year, USDA pays farmers the higher of PLC or ARC‑county for each covered commodity.

Farm loss payments and premium help

Producers can get payments for unborn livestock losses above normal mortality starting January 1, 2024. USDA sets the payment rate (capped at 85% of the lowest weight‑class rate) and applies species multipliers. Beginning farmers also get extra crop insurance premium help: +5 points in each of the first two reinsurance years, +3 points in year three, and +1 point in year four.

Farm payment rules favor working farms

If 75% or more of your average gross income comes from farming, ranching, or silviculture, AGI limits do not apply to certain payments received on or after October 1, 2024. The law also defines “qualified pass‑through entity” (partnerships, S corps, certain LLCs, and joint ventures) so these entities are treated consistently for program payments and rules.

Higher loan rates for sugar producers

For crop years 2025–2031, the raw cane sugar loan rate is 24.00 cents per pound. The CCC must set minimum storage rates for forfeited sugar: $0.34 per cwt per month for refined and $0.27 for raw cane.

More funding for farm research and organics

The law transfers $37 million right away to the Foundation for Food and Agriculture Research. For FY2026: $60 million funds 1890 scholarships, $8 million supports assistive tech for farmers with disabilities, $175 million goes to specialty crop research, $125 million per year funds research facility grants, and $5 million funds the Crop & Pesticide Use Survey. Specialty Crop Block Grants are $100 million in FY2026. Organic certification cost‑share runs through 2031, and the Organic Data Initiative gets $10 million a year for FY2026–FY2031.

Payments for farm‑raised fish losses

Producers of farm‑raised fish can receive annual emergency payments for losses from piscivorous birds. The Secretary sets a per‑acre rate of at least $600. Your payment equals the rate times 85% of your acres in production.

Updates and funding for dairy programs

Dairy Margin Coverage discounts and program authority run through 2026–2031. Your production history is the highest annual milk you marketed in 2021, 2022, or 2023. New dairies under one year old can choose how to set production history. The law also provides $50 million from the Commodity Credit Corporation for dairy program work, surveys, and a study, available until spent.

Higher 1099-K threshold restored

Third‑party platforms report your payments only if you have more than $20,000 in receipts and over 200 transactions in a year. Backup withholding rules line up with these thresholds. This applies to calendar years after December 31, 2024.

Refunds for removed dyed fuel

If you remove eligible indelibly dyed diesel or kerosene from a terminal, you can get a payment equal to the section 4081 tax previously paid per gallon. You must prove the removal. This applies to fuel removed starting 180 days after enactment. Excessive claims face civil penalties.

Funds to repair Kennedy Center

The law provides $256.657 million for FY2025 to fix and secure the John F. Kennedy Center. Funds are available through September 30, 2029. No more than 3% may be used for administrative costs.

$200 million for State efficiency grants

In FY2026, States receive $200 million to improve government efficiency, with $100 million split by each State’s share of applicable individuals as of March 31, 2025 and $100 million split equally. Funds remain available until spent.

CMS funds to implement Medicaid changes

The law gives CMS money to carry out new rules. It provides $5 million for each of FY2026 and FY2027 for budget neutrality work, $50 million in FY2026 and $100 million in FY2027 to help States deliver home and community‑based services, $15 million in FY2026 for cost‑sharing changes, and $200 million in FY2026 for community engagement. Funds remain available until spent as specified.

Higher home equity allowed for Medicaid

Beginning January 1, 2028, a State may choose a higher home equity limit—up to $1,000,000—for non‑agricultural homes when deciding Medicaid eligibility for nursing facility or other long‑term care. States can make this choice without statewideness or comparability limits.

Medicare doctor payments rise in 2026

From January 1 to December 31, 2026, Medicare increases physician fee schedule payments by 2.5%. This raises payments to doctors who treat Medicare patients.

No conflicted contractors for Medicaid compliance

States cannot use contractors that have financial ties to Medicaid managed care plans to decide if people meet community engagement requirements. This aims to prevent conflicts that could wrongly cut off benefits.

Extended authority for privatized military housing

Authority to acquire or build privatized unaccompanied military housing now extends through September 30, 2029 and applies across the services. This supports continued housing projects for service members.

DOE funds AI‑ready science data

DOE mobilizes national labs to curate scientific data for AI and machine learning and to seed self‑improving models. The law provides $150 million through September 30, 2026. Curated data will be shared with researchers, for example through an American science cloud.

Lower federal coal royalties through 2034

From enactment through September 30, 2034, the federal coal royalty rate is capped at 7%. Lessees who paid higher advance royalties receive a credit for the difference, for leases that have not been terminated.

More conservation funds and insurer support

The law directs CCC funds to RCPP: $425 million for FY2026 and $450 million each year for FY2027–FY2031. It adds $70 million for Voluntary Public Access and Habitat Incentives for FY2025–FY2031. Starting in the 2026 reinsurance year, approved crop insurers get an extra A&O payment equal to 6% of net book premium for eligible contracts in eligible States. Specialty crops get a minimum reimbursement set at 17% of the premium used in the loss ratio, or the usual SRA amount, whichever is higher. The 2026 A&O increase cannot exceed the prior year’s CPI‑U change.

Some fuel‑economy penalties set to zero

Per‑vehicle civil penalties for average fuel economy are set to $0 for model years where the Transportation Secretary has not issued a penalty notification. This applies starting on enactment.

Stronger audits and oversight at DoD

The law funds better Pentagon financial audits and oversight through September 30, 2029. It provides $150 million to replace business systems, $200 million to use automation and AI for audits, $10 million to improve budget infrastructure, and $20 million for DARPA cybersecurity. It also gives $10 million to the DoD Inspector General to watch programs with tech dependencies, data issues, and supply‑chain risks.

More federal financing for grid projects

The law provides $1 billion in FY2025 for energy loans and financing. The money stays available through September 30, 2028. Up to 3% can cover administrative costs. The program can support grid reliability and critical mineral activities.

Plan to free up and auction spectrum

Commerce and the FCC must identify 500 MHz for reallocation and auction at least 300 MHz. At least 200 MHz must be identified within 2 years, with auctions on a set schedule up to 8 years. The law appropriates $50 million in FY2025 for spectrum analysis, available through September 30, 2034.

Tax-exempt bonds for spaceports

Spaceports now qualify for tax‑exempt exempt‑facility bonds like airports. Spaceport property on federal land leased by a government can count as government‑owned if lease rules are met. Federal payments for use do not make a bond federally guaranteed. These rules apply to bonds issued after enactment.

Higher cover‑over on distilled spirits

For distilled spirits brought into the United States after December 31, 2025, the law raises the amount sent to certain jurisdictions to $13.25 per unit. This increases per‑unit transfers tied to spirits imports.

More energy income counts for PTPs

Publicly traded partnerships can treat more energy activities as qualifying income. Added areas include certain fuel transport or storage, hydrogen, some carbon capture work, and electricity from advanced nuclear or defined resources. This applies for tax years beginning after 2025.

Permanent look-through for foreign subsidiaries

The look‑through rule for related controlled foreign corporations is now permanent. The change applies to foreign‑company tax years starting after December 31, 2025.

REITs can hold more TRS assets

Starting with tax years after December 31, 2025, REITs can hold up to 25% of assets in taxable REIT subsidiaries, up from 20%. This lets REITs keep more subsidiary assets without losing REIT status.

Some export income treated foreign‑source

Starting in 2026, companies with a foreign office can treat up to 50% of income from U.S.‑made inventory sold abroad as foreign‑source. This can reduce U.S. taxable income for qualifying sales.

New fees for asylum, parole, work permits

Asylum applicants pay a filing fee and a yearly pending fee (at least $100 in FY2025, indexed after 2025). Many initial work permits cost at least $550 in FY2025, with renewals for some asylum cases at least $275. People paroled into the U.S. pay a parole fee of at least $1,000 in FY2025. Fees rise with inflation and are generally not waivable.

New fees on visas and travel records

Nonimmigrant visa holders pay a Visa Integrity Fee (at least $250 in FY2025), with possible reimbursement after timely compliance and departure. EVUS enrollments cost at least $30 in FY2025, with $5 per payment sent to the general fund. Form I‑94 applications cost at least $24 in FY2025. All amounts adjust with inflation after 2025.

One-year block on some Medicaid providers

For one year from enactment, federal Medicaid funds cannot pay certain reproductive health providers that perform abortions outside narrow exceptions and had over $800,000 in Medicaid spending in FY2023. The rule covers affiliates and successors. CMS gets $1 million in FY2026 to implement this.

Shorter Medicaid retroactive coverage window

For applications made after the first quarter that starts after December 31, 2026, Medicaid retroactive coverage is shorter. Expansion adults can get coverage back to the month before they apply. Others can get coverage back to the second month before they apply. CHIP follows this if a State elects retroactivity.

Excess business loss cap made permanent

The limit on how much business loss noncorporate taxpayers can deduct is now permanent. The change applies starting with tax years after 2026, with some date updates effective after 2025.

Penalty for false supplier certifications

If you give a supplier certification you knew or should have known was wrong and it causes a large energy credit disallowance, you can be fined. The fine is the greater of 10% of the underpayment due to the error or $5,000. The IRS has six years to assess amounts tied to these certifications. This applies to certifications after December 31, 2025.

Tougher penalties on COVID ERTC help

Paid promoters of COVID‑era ERTC claims owe $1,000 per due‑diligence failure for help given after enactment. The IRS has 6 years to assess related amounts. No ERTC credits or refunds are allowed after enactment unless the taxpayer filed by January 31, 2024.

Lower cap on consumer watchdog funding

The law lowers the cap in the Consumer Financial Protection Bureau’s funding formula from 12 to 6.5. This reduces the agency’s maximum funding level starting now.

States get lower federal share to run SNAP

The federal government pays 50% of state SNAP administrative costs through FY2026. Starting in FY2027, the federal share drops to 25%. States will get less federal money to run SNAP and may change operations.

Tighter Medicaid payment and audit rules

The law caps certain state‑directed Medicaid payments to Medicare‑level rates (100% in expansion States, 110% in others) and phases down older approvals starting January 1, 2028 by 10 points per year. States face stronger audit rules starting in FY2030, and waivers cannot cover error rates above 3%. To get an enhanced FMAP incentive, a State must have begun spending for all such individuals before January 1, 2026. Provider‑tax waivers are harder to get, with up to a 3‑fiscal‑year transition. Starting October 1, 2026, federal Medicaid match for emergency care for certain noncitizens cannot exceed the State’s regular FMAP.

Low‑earning programs risk losing federal funds

Starting July 1, 2026, schools cannot use certain federal funds to enroll students in programs whose recent graduates’ median earnings fall below a working‑adult benchmark for at least 2 of the past 3 years. Small cohorts are combined to at least 30 students for fair comparisons. Schools must warn students when a program is at risk, can appeal, and can regain eligibility after at least two years.

New tax rules for foreign-owned companies

For tax years of foreign corporations beginning after December 31, 2025, new rules apply to U.S. owners of foreign‑controlled groups. The law restores a limit on downward attribution so U.S. persons are not treated as owning stock held by non‑U.S. persons. It also creates section 951B to include income of foreign‑controlled U.S. shareholders under inclusion rules. The IRS will issue guidance.

Tougher tax rules on executive pay

Public companies in controlled groups must share the $1,000,000 deduction cap for certain executive pay starting in 2026. Tax‑exempt employers face a broader ‘covered employee’ definition for the excess compensation excise tax, also starting in 2026.

RECA expands but filing window shortens

RECA now covers more uranium workers, adds kidney disease for miners, and allows combined work‑history paths. It updates areas and presence rules for atmospheric‑testing claims, including parts of NM, UT, ID, NV, and AZ. The deadline to file claims is December 31, 2027, and the RECA Fund ends December 31, 2028.

More Medicaid integrity checks and reviews

States must build processes to prevent people from being enrolled in Medicaid or CHIP in more than one State by January 1, 2027, and join a national system by October 1, 2029. States must check the Death Master File at least quarterly starting January 1, 2027 for enrollees (and for providers by January 1, 2028). States must also redetermine eligibility every six months for certain groups starting with redeterminations on or after the first quarter after December 31, 2026.

Stricter checks for family FEHB coverage

OPM must verify qualifying life events and that added family members on FEHB plans are eligible. A three‑year audit begins 1 year after enactment and reviews documents like marriage and birth certificates. OPM must have a process to remove ineligible enrollees within 180 days of enactment. $66 million in FY2026 is available through FY2035 to carry out these actions.

Tighter checks on Marketplace subsidies

Health insurance Exchanges must verify eligibility before months count for the Premium Tax Credit. Months do not count if the Exchange fails key checks, or before it verifies eligibility to enroll and to receive advance payments. Exchanges must offer pre‑enrollment verification by August 1 for the next plan year. This applies to tax years after December 31, 2027.

3‑year test for construction contracts

For contracts entered in tax years after enactment, certain residential construction contracts use a 3‑year test instead of 2 years for accounting exceptions. This can change when builders report income, including for AMT.

New rules for partner payments

For services or property after enactment, the law changes how some partnership payments to partners are treated for tax. It can affect whether amounts are treated as guaranteed payments or other items. It does not change the treatment of earlier payments.

Budget‑neutral rule for Medicaid waivers

Beginning January 1, 2027, CMS may not approve, renew, or amend a section 1115 demonstration unless the CMS Chief Actuary certifies it will not raise federal spending versus normal law. The Secretary must set how to count savings and the baseline.

New limits on state Medicaid provider taxes

Starting with fiscal years on or after October 1, 2026, the law replaces the 6% hold‑harmless level with a phased “applicable percent.” For expansion States: 5.5% in FY2028, 5.0% in FY2029, 4.5% in FY2030, 4.0% in FY2031, and 3.5% in FY2032 and later. States without a tax as of enactment have a 0% applicable percent. CMS gets $20 million in FY2026 to implement.

Pauses Medicare savings and nursing staffing rules

The government pauses a new Medicare Savings Program rule until September 30, 2034, keeping current eligibility and enrollment rules in place. It also pauses the May 10, 2024 nursing home staffing rule through September 30, 2034. CMS receives $1 million in FY2026 to manage the pause on the Medicare Savings rule.

SNAP federal share tied to error rates

Starting FY2028, the federal share of a State’s SNAP allotments depends on the State’s payment error rate: under 6% = 100%; 6–<8% = 95%; 8–<10% = 90%; 10%+ = 85%. For FY2028, States can use FY2025 or FY2026 rates. Very high prior rates may allow a delay to FY2029 or FY2030.

Mixed changes to methane and oil rules

The methane emissions and waste reduction incentive program is extended through 2034. A 2021 methane royalty rule is repealed, returning to prior royalty law. A past order to sell oil from the Strategic Petroleum Reserve is removed. A deadline in a recent energy law is extended from 2026 to 2028.

More logging and energy leases

The law increases logging and energy activity on federal lands. BLM must sell at least 20,000,000 more board‑feet of timber every year for FY2026–FY2034 and sign at least five vegetation disposal contracts that last 20 years during FY2025–FY2034. Oil and gas lease sales in NPR‑A restart, with at least five sales in 10 years and at least 4,000,000 acres offered each sale. Interior must also make at least 4,000,000 additional acres available for coal leasing within 90 days, excluding protected areas. Alaska receives 70% of NPR‑A receipts starting in FY2034.

New fees and revenue from renewables

Renewable projects on federal land must pay an annual acreage rent using a set formula and a capacity fee equal to the larger of that rent or 3.9% of gross electricity sales. Payments are due annually; late payments can trigger fees, and rights‑of‑way can be ended if unpaid after 90 days. Wind projects can request a 10% reduction if at least 25% of the area supports other uses for the full year. Starting January 1, 2026, 25% of receipts go to the State and 25% go to counties based on where the revenue came from; county payments arrive the next fiscal year and are in addition to PILT.

SEC reserve fund closed in 2025

The SEC may spend Reserve Fund money already obligated until October 1, 2025. On October 1, 2025, all remaining balances move to the Treasury. The Reserve Fund then closes.

USDA sugar imports and trade systems

USDA must reallocate sugar import quotas when countries are forecast to miss their share and do another reallocation by March 1 each year. USDA also studies refined sugar import terms and reports to Congress within one year. Separate funding adds $1 million for FY2024 and FY2025 and $5 million for FY2026 to modernize international trade technology and data.

Mixed cross‑border corporate tax changes

For tax years beginning after December 31, 2025, corporations that claim deemed‑paid foreign tax credits use a higher 90% factor instead of 80%. At the same time, the BEAT rate rises from 10% to 10.5%. Multinationals may see higher credits but also a slightly higher BEAT liability.

New rules for business interest write-offs

For years starting in 2026, businesses must include certain foreign‑income inclusions when computing adjusted taxable income under the interest limit. Coordination rules apply the section 163(j) cap before deciding which interest is capitalized or deducted, and prioritize allowed amounts to interest that would be capitalized. A textual change to the statute applies for tax years after 2024.

Bronze and catastrophic plans qualify for HSAs

Starting January 2026, some ACA Exchange bronze and catastrophic individual plans count as high‑deductible health plans. This lets people in those plans contribute to Health Savings Accounts.

Telehealth stays HSA‑friendly

A health plan can waive the deductible for telehealth and still count as a High Deductible Health Plan. This keeps Health Savings Account eligibility. It applies to plan years starting after December 31, 2024.

Higher per‑pound aid for textile mills

Textile mill assistance is 3 cents per pound through July 31, 2025. The rate rises to 5 cents per pound starting August 1, 2025.

Pilot insurance for poultry growers

A pilot insurance program lets contract poultry growers elect index‑based coverage for extreme‑weather utility cost spikes (gas, propane, electricity, water). The Corporation must work with the industry and test in enough counties in top poultry States. The Board must approve a policy based on the pilot within two years of enactment.

Price Loss Coverage extended to 2031

Price Loss Coverage authorities continue through 2031, and certain calculation reference years update to 2017–2021. This keeps PLC support available for eligible producers.

More money for farm program audits

Starting in FY2026, $10 million a year is set for compliance reviews. Crop insurance compliance funding also rises to $6 million a year beginning in FY2026. This supports oversight and program integrity.

Funds to hunt budget savings

OMB gets $100 million for FY2025 to find budget and accounting efficiencies across the executive branch. The money is available through September 30, 2029.

Pandemic spending oversight through 2034

The law gives the Pandemic Response Accountability Committee $88 million in FY2026, available until spent. It adds this Act to the CARES Act oversight list and extends the oversight period from 2025 to 2034.

Bigger private share in military housing

Until September 30, 2029, private investors can hold up to 60% in privatized military housing projects. This temporary change can help projects raise more capital.

Fee for Special Immigrant Juvenile cases

Applicants for Special Immigrant Juvenile status must pay a fee of at least $250 in FY2025. The fee rises with inflation after 2025 and cannot be waived.

Higher fees for TPS applications

The maximum Temporary Protected Status fee is now $500. Beginning in FY2026, it can rise with inflation and is rounded down to the nearest $10. Fee waivers or reductions are not allowed.

Higher travel authorization fees and increases

Travel authorization fees are at least $13 per authorization and rise each year with inflation starting in FY2026. The program is extended through October 31, 2034.

1% tax on cash remittances

A 1% excise tax applies when you fund a remittance transfer with cash, a money order, or a cashier’s check. The remittance company collects the tax and sends it to the government. The tax does not apply if you pay from a bank account or with a U.S. debit or credit card. This starts after December 31, 2025.

New reporting on cash tips

Employers must report employees’ cash tips separately and list the employee’s occupation on forms. The IRS will publish a list of tipped jobs within 90 days of enactment. Withholding rules change after 2025, and a transition allows reasonable estimates before 2026. Some parts end December 31, 2028.

Penalties for illegal de minimis imports

If you use the de minimis entry privilege and violate other customs laws, you can be fined. The first violation can be up to $5,000. Later violations can be up to $10,000. The penalty rule starts 30 days after enactment. A prior commercial‑shipment exception is repealed on July 1, 2027.

Higher immigration filing fees now possible

The Attorney General must set, and can increase, immigration adjudication and naturalization fees. A prior cap is removed.

Less federal money for travel promotion

The annual transfer cap to the Travel Promotion Fund drops from $100 million to $20 million. This reduces the maximum federal support for national travel promotion.

More orphan drugs avoid Medicare negotiation

Starting in 2028, drugs that were orphan at approval stay out of initial Medicare price negotiation until they are no longer treated as orphan products. The law updates definitions to match this rule.

Nutrition education grants end after 2025

Funding for the National Education and Obesity Prevention grants runs only through FY2025. The open‑ended authorization ends after 2025.

Unused funds pulled from retrofit program

Any unobligated money from the Green and Resilient Retrofit Program is canceled. This only affects funds that were not yet obligated.

Help for orchards and beekeepers

For honeybees, the law sets a 15% normal mortality rate; only losses above that count for assistance. The Tree Assistance Program updates thresholds and language on normal mortality and raises one numeric threshold from 50 to 65. These changes are in effect upon enactment.

Treasury study on free tax filing

Treasury gets $15 million to study options for free tax filing and report to Congress within 90 days. The study looks at serving up to 70% of taxpayers and the costs of a direct e‑file system. Funds are available through September 30, 2026.

New formula for DC airports lease payments

The Airports Authority’s annual lease payment to Treasury now uses the GNP Price Deflator. From 2027 on, the amount must be at least $15 million in 2027 dollars. The parties must renegotiate at least every 10 years.

Sponsors & CoSponsors

Sponsor

Arrington

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 1,607 • No: 1,680

house vote • 7/3/2025

On Motion to Concur in the Senate Amendment

Yes: 218 • No: 214

senate vote • 7/1/2025

On Passage of the Bill H.R. 1

Yes: 50 • No: 50

senate vote • 7/1/2025

On the Motion (Bennet Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 47 • No: 53

senate vote • 7/1/2025

On the Motion (Warnock Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 48 • No: 51

senate vote • 7/1/2025

On the Motion (Wyden Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Motion to Waive Section 425(a)(2) of the CBA re: H.R. 1)

Yes: 51 • No: 48

senate vote • 6/30/2025

On the Motion (Padilla Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Schiff Motion to Commit H.R. 1 to the Committee on Agriculture, Nutrition, and Forestry with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Duckworth Motion to Commit H.R. 1 to the Committee on Agriculture, Nutrition, and Forestry with Instructions)

Yes: 49 • No: 51

senate vote • 6/30/2025

On the Motion (Hassan Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 48 • No: 52

senate vote • 6/30/2025

On the Motion (Gallego Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Blumenthal Motion to Commit H.R. 1 to the Committee on Armed Services with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Kaine Motion to Commit H.R. 1 to the Committee on Homeland Security and Governmental Affairs with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Blunt Rochester Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 48 • No: 52

senate vote • 6/30/2025

On the Motion (Reed Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 48 • No: 52

senate vote • 6/30/2025

On the Motion (Lujan Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 49 • No: 51

senate vote • 6/30/2025

On the Motion (Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 48 • No: 52

senate vote • 6/30/2025

On the Motion (Wyden Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 47 • No: 53

senate vote • 6/30/2025

On the Motion (Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 49 • No: 51

senate vote • 6/30/2025

On the Motion (Schumer Motion to Commit H.R. 1 to the Committee on Finance with Instructions)

Yes: 47 • No: 53

senate vote • 6/28/2025

On the Motion to Proceed H.R. 1

Yes: 51 • No: 49

house vote • 5/22/2025

On Passage

Yes: 215 • No: 214

house vote • 5/22/2025

On Motion to Recommit

Yes: 212 • No: 216

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