Key provisions of the law:
Extension of Trump's tax benefits (2017): key provisions made permanent. The standard deduction increased by 1 thousand for singles and 2 thousand for married couples — until 2028.
Reduction of the Medicaid program: starting in 2027, "able-bodied" participants must work a minimum of 80 hours per month. The conditions for re-registration are tightening. By 2032, the states' share of funding will decrease from 6 to 3.5%.
Social security: temporary tax deduction of up to 4 thousand per year for elderly citizens (2025–2028). The Senate proposes to increase the amount to 6 thousand for seniors with income up to 75 thousand a year.
SALT deduction: the limit on state and local tax deductions increased from 10 to 40 thousand starting in 2025, but only for 5 years.
SNAP food program: starting in 2028, states with high error rates in benefit calculations must cover up to 15% of expenses. Employment requirements are introduced for able-bodied citizens without dependents.
Defense and border: the defense budget increased by 150 billion, including the development of the "Iron Dome" missile defense system. The ICE immigration service will receive an additional 100 billion, making it the largest federal law enforcement agency.
Taxes on tips and overtime: until the end of 2028, it is allowed to deduct up to 25 thousand in tips and the same amount for overtime from the taxable base. The measure is temporary.
Child tax credit: increased to 22 thousand dollars per year starting in 2025. To qualify for the deduction, at least one parent must have a Social Security number.
Debt ceiling: raised by 5 trillion — 1 trillion more than in the previous version of the law.
Clean energy: phased elimination of "green" tax benefits. Companies using supply chains from "hostile jurisdictions" (in particular, China) are excluded from the government support program.