House Passes Landmark Bill with Surprising Amendments

Clear Facts

• The House of Representatives passed a significant bill with last-minute amendments, securing the support of nearly all House Republicans.
• The bill introduces Medicaid work requirements starting December 31, 2026, and disallows Medicaid funds for sex change procedures.
• Key changes include a raised SALT deduction cap, deregulation of gun suppressors, and additional border security funding.

The House of Representatives recently passed what has been described as a “one big, beautiful bill,” following crucial amendments introduced by the House Rules Committee the night before the vote. These modifications were instrumental in securing the bill’s passage by a narrow margin, uniting conservative members of the House Freedom Caucus (HFC) and blue state moderates under a common cause.

One of the pivotal changes involves the implementation of Medicaid work requirements, now set to begin on December 31, 2026, rather than the initially proposed January 1, 2029. This adjustment was made to satisfy HFC members like Texas Rep. Chip Roy and South Carolina Rep. Ralph Norman, who were keen on addressing waste and abuse within the Medicaid system. Both representatives, who had previously opposed advancing the bill, ultimately voted in favor of its passage.

The legislation also aims to discourage Medicaid expansion and prohibits the use of Medicaid funds for sex change procedures and therapies for both minors and adults. Additionally, it appropriates cost-sharing reduction payments for private health insurance plans in the individual market.

A notable change in the bill is the renaming of the Money Account for Growth and Advancement (MAGA) accounts to “Trump Accounts.” These accounts involve a $1,000 deposit for every newborn American, demonstrating a nod to former President Trump.

Another significant amendment is the increase in the state and local tax (SALT) deduction cap, which has been raised from $30,000 to $40,000 for households earning up to $500,000. This change was advocated by blue state Republicans who argue that lifting the cap could stimulate economic growth in states with higher taxes.

The bill also addresses energy policies, with plans to phase out certain Biden-era tax credits for low-carbon electricity by 2028, while preserving nuclear energy tax credits. This move underscores a shift towards energy independence and national security.

In a win for Second Amendment advocates, the bill deregulates gun suppressors, removing them from the national registry, and eliminates the gun manufacturer tax. This provision is seen as a step towards restoring gun rights.

Furthermore, the bill revokes a provision that would have allowed the sale of over 500,000 acres of public land in Utah and Nevada, a proposal that faced opposition from Montana Rep. Ryan Zinke. It also includes $12 billion in funding for border security, benefiting states like Arizona, California, New Mexico, and Texas.

Speaker of the House Mike Johnson celebrated the bill’s passage, stating that it “reduces spending, permanently lowers taxes for families and job creators, secures the border, unleashes American energy dominance, restores peace through strength, and makes government work more efficiently and effectively for all Americans.”

The bill now moves to the Senate, where it may encounter challenges, particularly concerning SALT, tax cuts, and other policies. Senate Majority Leader John Thune acknowledged these potential hurdles, noting the differences between House and Senate priorities.

Former President Trump praised the House’s achievement, urging the Senate to act swiftly. “There is no time to waste,” he emphasized, highlighting the bill’s significance in shaping the nation’s future.

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