Republicans are racing to deliver a sprawling domestic policy package for President Trump that cuts taxes, boosts spending on the military and immigration enforcement and slashes social safety net programs to help pay for it.<\/p>\n
The House passed its version last month and senators released their latest draft<\/a> just after midnight on Friday, hoping to tee up votes in the Senate in the coming days. There are big differences between the two chambers\u2019 bills, and Republican leaders have toiled to resolve their disputes about critical pieces to keep the package on track. The measure must pass the Senate and then win final approval in the House to clear Congress.<\/p>\n Here is a look at some of the key provisions in the bill and major differences.<\/p>\n Jump to a section:<\/p>\n Tax extensionsNew tax provisionsHealth care, food assistanceClean energyImmigration and defense<\/p>\n Key tax cut extensions<\/p>\n Many of the tax cuts President Trump signed into law in 2017 are set to expire at the end of the year. Republicans in both chambers want to extend and expand on those tax cuts, but they differ on how to do that.<\/p>\n Standard deduction<\/p>\n<\/td>\n Both bills would raise it above its current level of $15,000 ($30,000 for couples), with adjustments for inflation each year.<\/p>\n<\/td>\n House<\/p>\n Adds $1,000 ($2,000 for couples), from 2025 through 2028.<\/p>\n<\/td>\n Senate<\/p>\n One-time, permanent boost of $750 <\/strong>($1,500 for couples) in 2025.<\/p>\n<\/td>\n Child tax credit<\/p>\n<\/td>\n The maximum credit is currently $2,000 per child. Both bills would index the credit\u2019s size to inflation and then make an additional increase.<\/p>\n<\/td>\n House<\/p>\n Temporarily increases it to $2,500, starting in 2025 through 2028. Both parents need a Social Security number.<\/p>\n<\/td>\n Senate<\/p>\n Permanently increases it to $2,200<\/strong> in 2026. Only one parent needs a Social Security number.<\/p>\n<\/td>\n Estate tax<\/p>\n<\/td>\n Estates worth less than $14 million are currently exempt, but this threshold is set to drop to $7 million next year. <\/p>\n<\/td>\n House<\/p>\n Permanently exempts estates worth less than $14 million. Increases to $15 million ($30 million for couples) in 2026 with adjustments for inflation each year.<\/p>\n<\/td>\n Senate<\/p>\n Same as House.<\/p>\n<\/td>\n State and local tax deduction<\/p>\n<\/td>\n The current amount of state and local taxes that can be written off on federal tax returns is $10,000, but some House Republicans in high-tax states have pushed to significantly increase the cap.<\/p>\n<\/td>\n House<\/p>\n Raises cap to $40,000, increasing every year until 2033. The size of the cap decreases for people making more than $500,000 per year.<\/p>\n<\/td>\n Senate<\/p>\n Same as House, but reinstates the $10,000 cap in 2030.<\/strong><\/p>\n<\/td>\n Reporter note: Senate Republicans had been reluctant to bow to the demand of a few members of the House and lift the $10,000 SALT cap. But those House members were adamant that they would kill the entire bill without a big increase, and so the Senate matched their plan, albeit for a shorter period of time. \u2014 Andrew Duehren<\/p>\n<\/td>\n<\/tr>\n Deduction for business owners<\/p>\n<\/td>\n Many businesses pass earnings directly onto their owners, who then pay individual income taxes on the businesses\u2019 profits. The current deduction is 20 percent and both bills make the deduction permanent.<\/p>\n<\/td>\n House<\/p>\n Increases it to 23 percent.<\/p>\n<\/td>\n Senate<\/p>\n Keeps it at 20 percent.<\/strong><\/p>\n<\/td>\n Tax breaks for corporations<\/p>\n<\/td>\n Both bills revive the ability of companies to deduct full cost of certain investments and research projects in one year rather than spreading them out over time.<\/p>\n<\/td>\n House<\/p>\n Tax breaks, from 2025 through 2029.<\/p>\n<\/td>\n Senate<\/p>\n Tax breaks are permanent.<\/strong><\/p>\n<\/td>\n Reporter note: This is a big win for big business \u2014 and economists who widely believe that these investment incentives can actually help strengthen the economy. Restoring these tax breaks has been a priority for corporate lobbyists for years. \u2014 Andrew Duehren<\/p>\n<\/td>\n<\/tr>\n New tax cuts and policies<\/p>\n Mr. Trump also campaigned on a number of tax cuts and has pushed Republicans to include measures core to his policy agenda.<\/p>\n Additional deduction for seniors<\/p>\n<\/td>\n Both bills create an addition to the standard deduction for Americans 65 and older, from 2025 through 2028. The deduction would decrease for those who earn more than $75,000 a year ($150,000 for couples).<\/p>\n<\/td>\n House<\/p>\n Adds $4,000.<\/p>\n<\/td>\n Senate<\/p>\n Adds $6,000.<\/strong><\/p>\n<\/td>\n Reporter note: One of Mr. Trump\u2019s signature campaign promises was \u201cNo tax on Social Security.\u201d Because actually eliminating taxes on Social Security benefits was too costly and procedurally difficult, Republicans instead settled on upping the standard deduction for seniors. \u2014 Andrew Duehren<\/p>\n<\/td>\n<\/tr>\n No tax on tips<\/p>\n<\/td>\n Both bills create a new tax deduction for income from tips from 2025 through 2028.<\/p>\n<\/td>\n House<\/p>\n No cap. Only applies to those who make less than $160,000 a year.<\/p>\n<\/td>\n Senate<\/p>\n Deduction capped at $25,000<\/strong> and decreases for those making more than $150,000 a year<\/strong> ($300,000 for couples).<\/p>\n<\/td>\n Reporter note: The Senate version cleans up a problem with the House bill, which would have barred someone making $160,001 from receiving any tax break at all. Instead of a sharp cutoff like that, the Senate winds down the tax break for people making more than $150,000. \u2014 Andrew Duehren<\/p>\n<\/td>\n<\/tr>\n No tax on overtime<\/p>\n<\/td>\n Both bills create a new deduction for overtime premium pay from 2025 through 2028.<\/p>\n<\/td>\n House<\/p>\n No cap. Only applies to those who make less than $160,000 a year.<\/p>\n<\/td>\n Senate<\/p>\n Deduction capped at $12,500<\/strong> and decreases for those making more than $150,000 a year.<\/strong> (For couples, the deduction is limited to $25,000 and the income cutoff is $300,000.)<\/p>\n<\/td>\n No tax on car loan interest<\/p>\n<\/td>\n Both bills create a new $10,000 deduction for interest payments on car loans. <\/p>\n<\/td>\n House<\/p>\n The deduction decreases for those making more than $100,000 a year ($200,000 for couples), and the vehicle must go through final assembly in the United States.<\/p>\n<\/td>\n Senate<\/p>\n Expands the House\u2019s rules by requiring that the car be new<\/strong> in order to claim the deduction.<\/p>\n<\/td>\n Trump account<\/p>\n<\/td>\n In both bills, babies born between the start of this year and the end of 2028 receive an investment. The Trump administration is pursuing several options<\/a> to encourage Americans to have more children.<\/p>\n<\/td>\n House<\/p>\n $1,000 deposit in a new tax-advantaged \u201cTrump account.\u201d<\/p>\n<\/td>\n Senate<\/p>\n Same as House.<\/p>\n<\/td>\n Tax on university endowments<\/p>\n<\/td>\n Certain universities\u2019 net investment income is currently taxed at 1.4 percent. Both bills seek to substantially raise this threshold.<\/p>\n<\/td>\n House<\/p>\n Increases up to 21 percent.<\/p>\n<\/td>\n Senate<\/p>\n Increases up to 8 percent.<\/strong><\/p>\n<\/td>\n Reporter note: Much of President Trump\u2019s crusade against elite universities has been bogged down by legal questions or caught up in court. A tax increase passed by Congress, though, won\u2019t face the same legal hurdles while still imposing a substantial new cost on some of the nation\u2019s leading research universities, like Harvard. \u2014 Andrew Duehren<\/p>\n<\/td>\n<\/tr>\n Charitable contribution deduction<\/p>\n<\/td>\n Both bills allow taxpayers who take the standard deduction to deduct charitable donations. Historically, only those who itemize have been able to claim this deduction.<\/p>\n<\/td>\n House<\/p>\n Allows deduction up to $150 ($300 for married couples), from 2025 through 2028.<\/p>\n<\/td>\n Senate<\/p>\n Allows deduction up to $1,000<\/strong> ($2,000 for married couples), starting in 2026 with no expiration.<\/strong><\/p>\n<\/td>\n Reporter note: Because Republicans have expanded the standard deduction so much, far fewer Americans have been itemizing their deductions \u2014 including their charitable donations. Some nonprofits have argued that, without a charitable deduction, Americans are not as generous of donors. This bill would again let many Americans write off their donations on their taxes. \u2014 Andrew Duehren<\/p>\n<\/td>\n<\/tr>\n Cuts to health care and food assistance<\/p>\n To offset Mr. Trump\u2019s desired tax cuts, both bills propose steep cuts to health care and food assistance benefits for low-income Americans.<\/p>\n Medicaid: Work requirements<\/p>\n<\/td>\n Both bills impose a work requirement on most adults in order to qualify for benefits. States would also be required to check recipients\u2019 eligibility twice a year instead of once.<\/p>\n<\/td>\n House<\/p>\n Requires most adults without children to document 80 hours of work<\/a> or prove they qualify for an exemption.<\/p>\n<\/td>\n Senate<\/p>\n Expands the House\u2019s work requirement to include adults with children who are 15 and older.<\/strong><\/p>\n<\/td>\n Medicaid: Provider taxes<\/p>\n<\/td>\n Both bills limit strategies that states have developed<\/a> to tax medical providers as a way to draw extra federal money into their budgets.<\/p>\n<\/td>\n House<\/p>\n Freezes the amount of money states can raise.<\/p>\n<\/td>\n Senate<\/p>\n Reduces<\/strong><\/a> the maximum amount that states that expanded Medicaid under the Accordable Care Act are allowed to raise to 3.5 percent of medical bills from 6 percent for most medical providers.<\/p>\n<\/td>\n Reporter note: Some states rely heavily on these taxes to finance their Medicaid programs, and Republicans who worried that providers in their states, particularly rural hospitals, would be devastated by the reductions fought this provision. To address their concerns, Senate G.O.P. leaders delayed the cuts by one year and added to the bill a $25 billion fund for rural hospitals. \u2014 Margot Sanger-Katz<\/p>\n<\/td>\n<\/tr>\n Affordable Care Act<\/p>\n<\/td>\n Both bills make it harder to sign up for coverage or to qualify for tax credits to pay for it. <\/p>\n<\/td>\n House<\/p>\n Senate<\/p>\n Includes fewer restrictions<\/strong> for enrolling, but is largely similar.<\/p>\n<\/td>\n Food stamps<\/p>\n<\/td>\n Both bills impose a work requirement on most adults in order to qualify for benefits and shift some costs from the federal government to states starting in 2028.<\/p>\n<\/td>\n House<\/p>\n Senate<\/p>\n Walks back some of the House\u2019s work requirement, applying it to most adults with children 14 and older.<\/strong> The method for shifting costs to the states is different, too. Some states may not pay at all, depending on their error rates. <\/p>\n<\/td>\n Reporter note: The Senate also introduced a new carveout that may waive work rules for \u201cindividuals in a noncontiguous state,” in a move that appeared designed to win support from Senator Lisa Murkowski of Alaska. Separately, the nonpartisan Congressional Budget Office has said that forcing states to cover the costs of benefits could lead some states to exit the program entirely. \u2014 Tony Romm<\/p>\n<\/td>\n<\/tr>\n Eliminate clean energy programs<\/p>\n Mr. Trump also campaigned on rolling back tax credits for clean energy contained in the Inflation Reduction Act of 2022. Both bills do this, but the Senate has proposed a more gradual phase-out for certain technologies.<\/p>\n Wind and solar tax credits for businesses<\/p>\n<\/td>\n Both bills sharply phase out tax credits for companies that build large-scale wind and solar power plants.<\/p>\n<\/td>\n House<\/p>\n Projects must start construction within 60 days after the bill\u2019s enactment and be operational by the end of 2028 to receive tax breaks.<\/p>\n Solar leasing companies are ineligible.<\/p>\n<\/td>\n Senate<\/p>\n Projects must be operational by the end of 2027<\/strong> to receive tax breaks. <\/p>\n New wind and solar projects also face additional taxes if their supply chains are connected to China.<\/strong><\/p>\n<\/td>\n Reporter note: Tax credits for wind and solar have become a big fight: Many House Republicans want the subsidies gone immediately, while some senators warn that ending them too abruptly could kill jobs and raise electricity prices. While senators initially proposed a slower phaseout for these tax breaks, a revised version of their bill would more quickly bring an end to them. \u2014 Brad Plumer<\/p>\n<\/td>\n<\/tr>\n Other low-carbon electricity credits for businesses<\/p>\n<\/td>\n Both bills phase out tax credits for companies that build other new sources of low-emissions power like nuclear reactors, geothermal plants or battery storage.<\/p>\n<\/td>\n House<\/p>\n Battery, geothermal or other low-carbon electricity projects must start construction within 60 days after the bill\u2019s enactment and be operational by the end of 2028 to receive tax breaks. <\/p>\n But businesses building new nuclear reactors could qualify for the credit as long as they begin construction before the end of 2028.<\/p>\n<\/td>\n Senate<\/p>\n Nuclear, geothermal or battery projects qualify for a full tax credit if construction begins before the end of 2033, before phasing out completely in 2036.<\/strong><\/p>\n<\/td>\n Reporter note: While the Trump administration has criticized wind and solar power, Energy Secretary Chris Wright has supported power sources like geothermal and nuclear that can run at all hours but will take longer to develop. \u2014 Brad Plumer<\/p>\n<\/td>\n<\/tr>\n Residential energy tax credits<\/p>\n<\/td>\n Both bills end tax credits for rooftop solar, electric heat pumps and other energy-efficient home devices.<\/p>\n<\/td>\n House<\/p>\n Ends tax credits at the end of 2025.<\/p>\n<\/td>\n Senate<\/p>\n Same as House.<\/p>\n<\/td>\n Electric vehicle tax credit<\/p>\n<\/td>\n Both bills end a $7,500 tax credit that helped reduce the cost of electric vehicles.<\/p>\n<\/td>\n House<\/p>\n Ends the tax credit at the end of 2025.<\/p>\n<\/td>\n Senate<\/p>\n Ends the tax credit by Sept. 30, 2025.<\/strong><\/p>\n<\/td>\n Tax credits for companies that produce clean hydrogen fuels<\/p>\n<\/td>\n House<\/p>\n Companies must begin construction by the end of 2025 to claim credits.<\/p>\n<\/td>\n Senate<\/p>\n Companies must begin construction by the end of 2027<\/strong> to claim credits.<\/p>\n<\/td>\n Tax breaks for factories that make clean energy components like electric cars or solar panels<\/p>\n<\/td>\n Both bills terminate credit for wind power components after 2027.<\/p>\n<\/td>\n House<\/p>\n Excludes most companies from claiming the credit if their supply chains are connected to \u201cforeign entities of concern,\u201d which include China.<\/p>\n<\/td>\n Senate<\/p>\n Retains the House\u2019s restrictions, but narrows its definition<\/strong><\/a> for whether a company is tied to a \u201cforeign entity of concern.\u201d<\/p>\n<\/td>\n Reporter note: Because China dominates global supply chains for clean energy, companies say that broad restrictions could make it extremely difficult to access tax credits. \u2014 Brad Plumer<\/p>\n<\/td>\n<\/tr>\n Rescinding IRA funds<\/p>\n<\/td>\n Both bills rescind an estimated $5 billion in unobligated funds from certain programs<\/a> included in the IRA.<\/p>\n<\/td>\n House<\/p>\n Also repeals the programs.<\/p>\n<\/td>\n Senate<\/p>\n Does not repeal the programs altogether.<\/strong><\/p>\n<\/td>\n Increase spending on immigration enforcement and defense<\/p>\n Mr. Trump put immigration at the center of his political agenda and both chambers are prioritizing it. The House would steer about $175 billion toward immigration enforcement and border security. It also adds about $150 billion in new military spending.<\/p>\n Border wall<\/p>\n<\/td>\n Both bills provide funds to build the border wall and related infrastructure, as well as improve Customs and Border Protection facilities.<\/p>\n<\/td>\n House<\/p>\n Provides $46.5 billion for border wall and $5 billion for CBP facilities.<\/p>\n<\/td>\n Senate<\/p>\n Same as House.<\/p>\n<\/td>\n Reporter note: There has been little debate between the two chambers over increased spending to boost Mr. Trump\u2019s crackdown on immigration, now at the center of Republican politics. \u2014 Michael Gold<\/p>\n<\/td>\n<\/tr>\n Customs and Border Protection personnel<\/p>\n<\/td>\n Both bills provide funds to hire and train new CBP staff, along with retention and signing bonuses.<\/p>\n<\/td>\n House<\/p>\n Provides $4.1 billion for hiring and training new CBP staff and $2 billion for retention and signing bonuses.<\/p>\n<\/td>\n Senate<\/p>\n Same as House.<\/p>\n<\/td>\n Immigration detention facilities<\/p>\n<\/td>\n House<\/p>\n Provides $45 billion.<\/p>\n<\/td>\n Senate<\/p>\n Same as House.<\/p>\n<\/td>\n Immigration and Customs Enforcement personnel and operations costs<\/p>\n<\/td>\n Both bills fund hiring more ICE staff, transportation costs for removals and improvements to ICE facilities.<\/p>\n<\/td>\n House<\/p>\n Provides $27.3 billion.<\/p>\n<\/td>\n Senate<\/p>\n Provides $29.8 billion.<\/strong><\/p>\n<\/td>\n Boosting immigration courts<\/p>\n<\/td>\n Both bills provide funds to the Justice department.<\/p>\n<\/td>\n House<\/p>\n Provides $3.3 billion for immigration-related matters, including hiring more immigration judges and prosecuting drug trafficking as well as crimes involving undocumented immigrants.<\/p>\n<\/td>\n Senate<\/p>\n Provides the same amount as the House, but specifies some additional uses.<\/p>\n<\/td>\n Military readiness<\/p>\n<\/td>\n Both bills provide funding to expand stocks of spare parts, to improve infrastructure of military depots and shipyards, and to expand capacity of Special Forces.<\/p>\n<\/td>\n House<\/p>\n Provides $11.5 billion.<\/p>\n<\/td>\n Senate<\/p>\n Provides $16.3 billion.<\/strong><\/p>\n<\/td>\n Munitions<\/p>\n<\/td>\n Both bills provide funding to expand America\u2019s arsenal of munitions and expand production of critical minerals.<\/p>\n<\/td>\n House<\/p>\n Provides $20.4 billion.<\/p>\n<\/td>\n Senate<\/p>\n Provides $25.3 billion.<\/strong><\/p>\n<\/td>\n Shipbuilding<\/p>\n<\/td>\n Both bills provide funding to expand and improve America\u2019s naval fleet.<\/p>\n<\/td>\n House<\/p>\n Provides $33.7 billion.<\/p>\n<\/td>\n Senate<\/p>\n Provides $29.1 billion.<\/strong><\/p>\n<\/td>\n Air and missile defense<\/p>\n<\/td>\n House<\/p>\n Provides $24.7 billion.<\/p>\n<\/td>\n Senate<\/p>\n\n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n Reporter note: To receive the full credit, families have to surpass certain income thresholds. Neither bill changes that requirement, excluding many low-income families<\/a> from the full credit and the proposed additions. \u2014 Tony Romm<\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n <\/td>\n<\/tr>\n \n \n \n \n \n