May 22, 2025: GOP Megabill Passes: What’s in It & What’s Next
Good morning, all,
House Republicans’ megabill passed at 6:45AM ET by a vote of 215-214, with all Democrats opposed. The vote followed last-minute edits to win holdout Republican votes. Those changes include:
Speeding the timeline for onerous Medicaid work reporting and eligibility paperwork requirements. These would now kick in at the end of 2026—or, for work reporting, sooner if states so chose. This means the resulting coverage losses will also occur sooner.
Hastening the end of clean energy tax credits. While the bill originally phased these incentives out over time, the revised version ends most at the end of 2028, with exceptions for nuclear energy. Projects must also begin construction within two months of this bill’s enactment and be placed in service by the end of 2028 to qualify for tax credits. Analysts said these requirements could render the credits impossible to use.
Raising the state and local tax (SALT) deduction cap to $40,000. It’s currently set at $10,000. This new limit applies to taxpayers making under $500,000; it phases down for those making more, but won’t go below $10,000. The cap will increase annually through 2033.
The bill still has several hurdles to clear before it could plausibly become law. It now heads to the Senate, where a host of changes are expected to appease GOP senators and adhere to the Senate’s stricter rules. We’ll explore potential changes more in future updates. For a timeline outlining expected actions over the next couple months, see our May 19 update. For a refresher on the reconciliation process Republicans are using to advance this bill, see The Basics of Budget Reconciliation.
GOP MEGABILL: TOPLINE SUMMARY
This bill would renew and expand tax loopholes for the wealthiest Americans, while hurting people who make the least.
The nonpartisan Congressional Budget Office (CBO) found that Americans making the lowest incomes would lose resources under this bill, while those whose incomes are in the top 10 percent would make more. Specifically, under the GOP megabill, the top 0.1 percent of Americans would take home at least $389,000 extra in after-tax income next year, while people making under $17,000 would lose $1,000, and those making between $17,000 and $51,000 would lose $700.
On top of this extra money for the wealthiest Americans, the bill funnels billions to the Pentagon and defense contractors like Elon Musk’s SpaceX. For more details on the bill’s military funding, see DOGE “Cuts” vs. Congress’ Cash.
The Republican megabill pays for these tax giveaways to the mega-rich by taking health care, food assistance, and more from communities across the country. Below is a summary of key provisions and their expected impacts.
Note: This summary is not exhaustive and reflects the bill at the time of publication on May 22, 2025. Furthermore, the CBO estimates referenced concern the version of the bill approved by the House Budget Committee and, therefore, do not account for last-minute changes expected to exacerbate the disparity between the bill’s benefits for the rich and consequences for working families.
IMPACTS ON HEALTH CARE
This bill would take health insurance away from an estimated 15 million Americans. Here’s how:
New work reporting requirements for Medicaid enrollees. This new red tape alone would kick millions off their health insurance—without actually promoting employment. Most Medicaid enrollees already work, and most within the minority who do not are caring for family members, have a disability, or attend school. People who lose coverage due to work reporting requirements suffer long-term consequences: Arkansas data shows that half struggle to pay off medical debt and nearly two-thirds delay taking medications.
New paperwork requirements to “re-prove” Medicaid eligibility. This added red tape results in people who are Medicaid-eligible losing insurance due to paperwork errors or processing delays.
Killing tax credits that lower families’ health care costs. The bill lets tax credits that help families afford their insurance premiums expire. Some will no longer be able to afford coverage, resulting in an estimated 4 million Americans losing their insurance.
“Defunding” Planned Parenthood. The bill bars Medicaid payments to Planned Parenthood, where 4-in-10 Medicaid recipients have received care, despite findings that other providers cannot fill the gap if Planned Parenthood facilities are forced to close.
Forcing Medicare cuts. CBO found that the bill balloons the country’s deficit so much that it would trigger cuts to Medicare, too, with untold effects on more than 68 million Medicare enrollees’ care.
Cutting off access to gender-affirming care for people of all ages. The bill blocks Medicaid funding for gender-affirming care. It also amends the Affordable Care Act to bar coverage of gender-affirming care as an essential health benefit—a change that may lead to insurers dropping coverage.
IMPACTS ON FOOD ASSISTANCE
This bill would put nearly 11 million people—including more than 4 million kids—at risk of losing food assistance under the Supplemental Nutrition Assistance Program (SNAP). Here’s how:
New work reporting requirements for people who receive food assistance—including for older Americans and parents of young children as young as 8-years-old. Similar to Medicaid reporting requirements, this new red tape would have little effect on the number of people working, but would hurt working families, including children. Kids who lose even some of their SNAP benefits become more likely to skip medical care as their families try to make ends meet. Many could also lose access to school meals.
Forcing states to cut back on or end food assistance. The bill pushes SNAP benefit costs onto states for the first time since the program’s creation during the Great Depression. This is expected to force states to cut back on the assistance hungry Americans can receive, narrow SNAP eligibility, or end their food aid programs entirely.
Preventing food assistance from keeping up with rising costs. In 2021, at Congress’ direction under a law then-President Trump signed, the Biden administration updated the grocery budget the Agriculture Department uses to determine the monthly SNAP allotment for the first time in 15 years. The change meant, on average, an extra $12-$16 per person per month for SNAP households. Republican members of Congress strongly criticized this increase, and this bill would forestall similar updates in the future.
IMPACTS ON FAMILIES’ COSTS
This bill would raise families’ costs. Here’s how:
Kicking 4.5 million American kids off the child tax credit. The bill would deny the child tax credit—an essential tool for combatting child poverty—to U.S. citizen kids whose parents do not have Social Security numbers.
New out-of-pocket costs for some Medicaid enrollees. This bill would let states charge low-income Americans up to $35 per health care service, such as a doctor's appointment. Evidence shows these charges discourage people from seeking needed care—even when that care might be exempt from co-pays.
Making energy bills more expensive. The bill ends or restricts several tax credits for clean energy, electric cars, and home efficiency improvements, raising Americans’ energy costs. For example, under this bill, homeowners who purchase solar panels would lose access to a 30 percent tax credit.
IMPACTS ON STUDENTS
This bill would threaten education access. Here’s how:
Hikes borrowers’ student loan payments. Under this bill, the average borrower with a college degree would pay an additional $2,928 per year.
Funnels public dollars to private education. The bill creates a $5 billion private school voucher program, allowing ultra-wealthy Americans to claim tax breaks for their donations to organizations that give out private school scholarships. Evidence shows that private school vouchers divert resources away from public schools and could result in school closures or teacher layoffs. This hurts public school students and kids with disabilities, as private schools are exempt from certain laws that uphold their rights.
IMPACTS ON IMMIGRANT FAMILIES
This bill targets immigrant families. Here’s how:
New penalties for states that provide health care to undocumented immigrants. The federal government would cut Medicaid funds for states that use state funds—not federal dollars—to cover undocumented immigrants.
Funnels $80 billion to build immigration jails and deny immigrants of their rights. This is on top of $69 billion to militarize the border.
Taxes remittances. The bill slaps a 3.5 percent tax on money that immigrants in the U.S. send abroad. This could worsen economic insecurity in those countries and prompt more migration to the U.S.
Bars DACA recipients from health care plans. The bill prevents Deferred Action for Childhood Arrivals (DACA) recipients from signing up for health insurance via the Affordable Care Act marketplaces and denies them tax credits that help lower the cost of insurance premiums.
Imposes new penalties on immigrants seeking asylum protections. These fees include $1,000 to seek asylum, plus $100 annually as the government considers that application.
IMPACTS ON CONSUMER AND DEMOCRATIC PROTECTIONS
This bill puts consumer protections and democratic protections at risk. Here’s how:
Cutting funding for the Consumer Financial Protection Bureau (CFPB). This watchdog agency has returned $20 billion to defrauded Americans and investigated consumer complaints against companies like Tesla. Without adequate resources, CFPB cannot recoup Americans’ costs when companies rip them off.
Blocks states from enforcing their own artificial intelligence (AI) laws. The bill would prohibit state and local governments from enforcing any AI-related laws or regulations for a decade, including those related to consumer protection, worker rights, and civil rights, without advancing any similar protections on the federal level.
Enabling government officials to ignore court orders. The bill would inhibit judges’ ability to hold federal officials in contempt of court, removing a critical check on the executive branch.