In the latest developments from Washington, House Republicans made significant last-minute revisions to their comprehensive tax cut and immigration bill in an effort to persuade GOP holdouts and advance the legislation through the House. The amendments were revealed late on Wednesday evening, just prior to an all-night session where lawmakers would debate and cast their votes on the proposal. President Donald Trump has been vocal in his support, urging Republicans to rally behind the bill, which aligns with some of his key campaign promises.
If the bill successfully passes the House, it will proceed to the Senate for further consideration and potential modifications. The revisions made by the House Republicans include several crucial changes that aim to address concerns raised by party members and to garner broader support within the Republican Party.
One of the notable modifications involved the removal of provisions that authorized the sale of vast tracts of public lands in Nevada and Utah. This decision came after objections from Republican lawmakers representing Western states who were against the sales. Additionally, the bill saw a rebranding of new investment accounts that parents or guardians can establish for infants. Initially called “MAGA accounts,” these will now be referred to as “Trump accounts,” reflecting a more direct endorsement of the former president.
Further adjustments included the acceleration of a new work requirement for certain able-bodied Medicaid beneficiaries, moving the implementation date up to December 31, 2026, from the originally planned January 1, 2029. House Speaker Mike Johnson noted that the original timeline was intended to give states reasonable time to adapt to new requirements, yet pressure from some Republicans led to a push for a quicker rollout.
Another significant change involved the state and local tax (SALT) deduction, which was increased from $10,000 to $40,000 for households earning up to $500,000. The deduction will gradually phase down for taxpayers above that income threshold and will see a 1% annual increase over the next decade. This increase was a divisive topic among Republicans, and the higher cap was aimed at attracting support from party members in states like New York, New Jersey, and California, who faced the brunt of the previous cap.
In a controversial addition, the revised bill includes a provision that deregulates gun silencers by removing them from the federal registry governed by the National Firearms Act. This change eliminates the $200 excise tax that was previously imposed on silencers, reflecting a broader push by certain lawmakers to ease firearms regulations.
Additionally, the Republicans chose to retain the current formula for calculating federal workers' retirement pensions, maintaining that annuities will continue to be based on the highest three years of earnings rather than extending the calculation to the highest five years, which would have reduced benefits but potentially saved money for the government.
Moreover, the bill proposes a $12 billion fund for the Homeland Security secretary, designed to provide grants to states for expenses related to the detention and removal of migrants, in addition to other border security efforts. The legislation also accelerates the phaseout of tax credits established under the Inflation Reduction Act for wind, solar, and battery storage technologies, moving the end date to 2028.
These revisions represent a strategic attempt by House Republicans to unify their party and push this comprehensive legislation forward, despite internal divisions and external scrutiny. The outcome of this bill could have significant implications for tax policy, immigration enforcement, and social welfare programs across the nation.
