Big Medicaid, SNAP changes in tax bill

Republican hashing out details ahead of vote

By: Riley Beggins
USA today

WASHINGTON - The House aims to pass a massive package with big changes to Medicaid, SNAP food benefits and income taxes in line with President Donald Trump's agenda.
..... It's packed with GOP priorities spanning from energy and border security to taxes and new restrictions on popular benefit program that could see more than 7 million people denied federal health care coverage.
..... Fiscal conservatives are pushing for more cuts ahead of the May 22 [2025] vote, while blue state Republicans are pushing for a state and local tax deduction that may be key to their political survival. Several parts of the package are still being negotiated and are likely to shift right up until the full House votes.

Slim margin on bill

..... The margins are slim: Because no Democrats are expected to support the proposal, House Republicans can lose only three GOP votes to pass it.
..... Even then, the legislation is still for from the finish line. Once it gets through the House, it will likely have to go through committees and a floor vote in the Senate before it is once again reconciled with the House and sent to the president. The policy details may be tweaked at any point along the way.
..... House Speaker Mike Johnson has said he wants to pass the bill before Memorial Day.

Amped up border security

..... The bill includes more than $140 billion in spending on the Trump administration's plan to crack down on illegal immigration.
..... That include $50 billion for completing the wall on the southern border, $45 billion for detention centers, $8 billion to hire more immigration officers and $14 billion for deportations.

Boosted defense spending

..... The bill includes around $150 billion more in defense spending, which could increase as it goes through the Senate.
..... The current proposal includes $20 billion that would go, in part, to creating a "golden Dome" missile defense system that Trump has promoted.

Medicaid changes

..... Medicaid the program that provides helaht insurance to more than 71 million low-income Americans, would undergo big changes if the bill remains as is.
..... House Republicans have proposed changes that would save at least $325 billion and cause 7.6 million Americans to lose their health insurance over the next 10 years, according to initial estimates by the nonpartisan Congressional Budget Office.
..... The bill would implement work requirements for adults enrolled in Medicaid expansion and increase the frequency of eligibility checks to ensure people still qualify for the program.
..... The props la would also bar Medicaid from funding services at clinics that also perform abortions, such as Planned Parenthood, and discourages states form using their own funds to provide Medicaid coverage to undocumented children.

SNAP work requirements

..... The proposal would implement new requirements in the Supplemental Nutrition Assistance Program, known as SNAP or food stamps, which provides food assistance to around 42 million Americans. That would save up to $300 billion over the next 10 years and shift more of the cost to states.
..... The Republican plan would implement new work requirement for people ages 55 to 64, require states to provide more funding for the program for the first time, limit SNAP eligibility to citizens and lawful permanent residents - and prevent future presidential administrations from increasing benefits without Congressional approval.

$2 trillion in tax breaks

..... Republicans want to make permanent the 2017 Tax Cuts and Jobs Act, a bill passed during Trump's first term that lowered taxes for all income brackets but disproportionation benefited the highest earners.
..... The cuts implemented in 2017 expire at the end of the year. [2025] If they are not extended, income tax rates will go up for all but two income brackets next year. [2026]
..... This is the most expensive provision in the bill and is expected to cost over $2 trillion over the next ten years alone.

No tax on tops, overtime: car loan interest deduction

..... Two of Trump;s major campaign promises - no taxes on tips or on overtime wages - are included in the bill.
..... Workers could claim the tax deduction through 2028. Both include guardrails to stop "highly compensated employees" from claiming the deduction, and the tipped work specifies what kind of occupations are eligible, such as people serving food or providing beauty services.
..... Both provisions also require workers to list their Social Security number when they claim the deduction, which bars undocumented workers from claiming it. The bill would also allow people to temporarily deduct up to $10,000 in car loan interest payments if they buy an American-made vehicle. The total deduction amount would decrease for people who make more than $100,000 , or $200,000 filing jointly.

Raising the debt ceiling

..... The United States Treasury expects the country will hit the debt ceiling in August. [2025] In order to avoid a catastrophic default on the national debt, Congress will have to approve an increase in the debt ceiling. This legislation raises the debt ceiling by $4 trillion.

Expanded child tax credit

..... The bill would increase the child tax credit to $2,500 through 2028. It would drop to $2,000 after that.
..... The child tax credit is currently $2,000 but will go back to $1,000 at the end of this year [2025] if not extended.

Extra money for senior

..... People over age 65 could deduct an additional $4,000 from their taxes if they make less than $75,000 or $150,000 filing jointly. People who make more than that are eligible for smaller deductions as their income increases. The deduction would last through 2028.

Green energy roll-backs

..... The bill would rescind several climate change-related provisions for former President Joe Biden's Inflation R Eduction Act, including a $7,500 tax credit for electric vehicles.
..... It would pull back unspent money for several grant and loan programs at the Energy Department and Environmental Protection Agency, delay methane fees for oil and gas companies, repeal additional rules encouraging the adoption of electric vehicles, and accelerate permitting for fossil fuel projects.

..... Contributing: Kayla Jimenez, USA Today

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