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U.S. House Passes Trump's 2025 Tax
Narrow Victory in the House
On May 22, 2025, the U.S. House of Representatives narrowly passed the sweeping "2025 Tax and Spending Reform Bill" proposed by former President Donald Trump. The legislation passed with 215 votes in favor and 214 against, and now heads to the Senate for further review.
Key Provisions in the 2025 Tax Bill
Extension of 2017 Tax Cuts: Renewing Trump's previous tax cuts for several more years.
Child Tax Credit Increase: Raising the credit to $2,500 per year through 2028.
Tax Exemption on Tips and Overtime: Workers will no longer be taxed on tips and overtime pay.
Auto Loan Interest Deductions: New tax breaks on car loan interest.
SALT Deduction Cap Raised: From $10,000 to $40,000 for families earning under $500,000.
Tighter Welfare Rules: New work requirements for Medicaid and SNAP recipients.
End of Green Energy Incentives: Repealing Biden-era climate tax benefits.
Defense and Border Spending Increase: Allocating $46.5 billion for military and border security.
Political Divide
The bill caused tension within the Republican Party, but Trump secured support with last-minute concessions.
What’s Next?
The bill now moves to the Senate, where it is expected to face strong opposition and potential revisions.
