The Senate version of President Trump’s “One Big Beautiful Bill” that passed a key procedural vote late Saturday has some big differences to the version the House approved.
Two Republican Senators — Thom Tillis (R-NC) and Rand Paul (R-KY) were the lone GOP holdouts in the 51-49 vote after caucus leadership spent hours rallying support for the multi-trillion-dollar bill.
The current version of the bill, which Senate lawmakers got their first look at Friday night, clocked in at 940 pages, and is largely in line with what the House narrowly approved in May.
The Senate is expected to make a final vote on its version of the bill as early as Monday.
Both versions will make Trump’s 2017 tax cuts permanent, reduce taxes on tips and overtime, increase border security funding and slash green-energy tax credits passed during the Biden administration — including the $7,500 credit for buying Teslas and other EVs.
But, the marquee legislation will require the Senate and House to reconcile their versions before the bill can be fully approved and go to President Trump for his signature.
Here are the big differences between the bills right now.
Tax cuts
Both versions of the bill include a number of Trump’s promised tax incentives — some $3.8 trillion in tax cuts in all — but differ slightly when it comes to raw numbers.
The Senate version would allow Americans to deduct as much as $12,500 for overtime pay and up to $25,000 in tip income through 2028 — reductions that would drop for those making $150,000 or more. The House version didn’t put limits on the deductions.
The child tax credit would jump from $2,000 to $2,200 per child under the Senate bill, and adjust for inflation after this year. The House version, however, would raise the credit to $2,500 temporarily before lowering it back to $2,000 and adjusting it for inflation.
One of the most significant differences in the Senate bill is a provision to permanently expand the standard deduction. The House version would only see it expanded through 2028.
Senate lawmakers also raised a tax break for seniors to $6,000 through 2028, whereas in the House bill that figure is $4,000.
Raising the debt ceiling
The Senate’s version of the bill would raise the US debt limit by $5 trillion, 20% higher than the House’s proposal of $4 trillion.
The higher the debt ceiling, the longer Congress can go without having yet another politically fraught debate about the national debt and government spending.
If the Big Beautiful Bill isn’t passed, the federal government is set to run out of borrowing authority in August or September.
Cuts to food stamps spending
The Supplemental Nutrition Assistance Program — food stamps or SNAP — subsidizes food for some 40 million low-income Americans. Both the Senate and House versions would cut what the US government spends on the program.
The Senate bill would require “able-bodied adults” to continue working up to age 64, with some exemptions carved out for parents with children under age 14. However, states would be limited in how they can waive the requirements.
The House version would require adults, including those with children age six or older, to work in order to qualify for benefits.
States would also be required to kick in more of the cost to provide food aid. The changes to the program would take effect in 2028.
State and Local Tax Deduction (SALT)
One of the most closely watched provisions of the Big Beautiful Bill Act in the New York City area been the SALT deduction — which caps the amount of state and local taxes taxpayers can write off on their federal income tax returns.
The amount is currently capped at $10,000, after Trump’s 2017 tax cuts, but both versions of the bill would boost that to $40,000 for married couples making up to $500,000 per year.
However, in the version advanced by the Senate, the cap would increase through 2029 then return to $10,000, while the House version would make the increased cap permanent.
Medicaid
Another highly contentious aspect of the legislation has been proposed changes to Medicaid, which provides health services to low-income, disabled and elderly Americans.
Under the House version, able-bodied, childless adults would be required to work 80 hours per month to qualify. The Senate bill widens this requirement to include adults with children age 15 or older.
The nonpartisan Congressional Budget Office estimates the House-passed package will add $2.4 trillion to the US’ deficit over the next decade. It’s still analyzing the expected impact of the Senate version, however.
