A sweeping new bill backed by President Trump is moving through Congress, bringing major changes to taxes, healthcare, and energy policy. After intense overnight negotiations lasting nearly 22 hours, Republican leaders pushed the bill forward for a final House vote.
The changes touch everything from family budgets to healthcare access. For families with children, the tax credit would jump to $2,500 per child – money that goes straight back into parents’ pockets at tax time. Older Americans would see help too, with a new $4,000 tax break for those over 65 to keep more of their Social Security money.
Homeowners in places with high local taxes, like New York and California, would get to deduct up to $40,000 in state and local taxes – a big jump from the current $10,000 limit. But this only works for households making less than $500,000 a year.
Healthcare faces major shifts. Childless adults without disabilities on Medicaid would need to work 80 hours each month to keep their coverage. This change could leave 7.6 million Americans without health insurance. Rural hospitals worry this might force them to cut services or close their doors if too many patients can’t pay.
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The money math has sparked fierce debate. Government number-crunchers say the bill would add $2.5 trillion to the country’s debt over ten years. But the White House sees it differently, saying the bill would generate $2.6 trillion in revenue through economic growth, along with $1.6 trillion in deficit reduction from spending cuts.
For energy costs, the bill cuts back on programs that help pay for solar and wind power projects. New clean energy projects would need to start within 60 days of the bill passing or finish by 2028 to get tax benefits.
Speaker Mike Johnson needs almost every Republican vote to pass the bill, given his party’s slim majority. “I’m convinced we’re going to pass this bill tonight,” he said Wednesday. President Trump has personally stepped in, meeting face-to-face with uncertain Republicans to win their support.
Democrats stand firmly against it. “President Trump promised to lower the high cost of living in America. He has failed,” House Democratic leader Hakeem Jeffries said.
Treasury Secretary Scott Bessent adds urgency to the debate, warning that without this bill’s debt ceiling increase, the government could run short on money to pay its bills by August.
The bill now faces its biggest test in the House vote, with an even tougher road ahead in the Senate. These changes would reshape how millions of Americans pay taxes, receive healthcare, and power their homes for years to come.
