The ‘Big Beautiful Bill’ – A Synopsis

Following up on yesterday’s festivities:

The (H.R.1, 119th Congress) was signed at 5pm Eastern by the President — and there’s quite a bit te. A big one is the retention of the 2017 tax cuts – the lowest tax brackets ever – which keeps taxes lower for everybody. What follows is a synopsis of the major items passed.

• Extends 2017 Tax Cuts and Jobs Act rates, preventing tax hikes for 62% of taxpayers.
• & Tips and overtime pay now exempt from federal income tax.
• Deduction cap increased to $40K for incomes under $500K (reverts in 2029).
• Permanently increases credit to $2,200 per child, indexed for inflation.
• Exemption raised to $15 million — protects family farms and businesses.
• Raised to $16K (individuals) and $32K (joint); seniors under $75K get $6K extra.
• Makes 20% QBI deduction permanent, bumps to 23%, restores 100% bonus depreciation.
• $200 tax eliminated for suppressors, SBRs, SBSs, AOWs (effective Jan 2026).
• Work requirements for childless adults; tighter income/residency checks; saves $400B.
• States with high error rates must share costs starting 2028.
• IRA tax credits phased out for EVs, chargers, solar/wind, and efficiency upgrades.
• $12.5B for CBP, air traffic modernization, tech and manpower.
• Funds lethal, readiness-focused military posture.
• Invests in oil, gas, biofuels — $285M/year for ag exports and energy.
• Medicaid funds blocked for one year; redirected to other providers.
• Limit lifted by $5T to support reforms and cuts.
• $50B over 5 years for rural hospitals (up from $25B in House version).
• State Medicaid provider tax cap lowered to 3.5% by 2031.
• $60M for 1890 Institutions scholarships; $175M for specialty crops in 2026.
• Funds statuary park + $150M for America’s 250th Anniversary (through 2028).