House Republicans cleared a major hurdle over the weekend in advancing a sweeping package of President Trump’s tax proposals, along with significant spending cuts and reforms for key federal programs.

The House-passed bill includes a large tax cut, as well as more money for defense and immigration enforcement, financed in part by slashing health, nutrition, education and clean energy programs.

Republican holdouts appear to have a deal with House GOP leadership to advance President Donald Trump's sweeping tax policy bill. The legislation will be tweaked to move up the implementation of Medicaid work requirements from 2029 to December of 2026;

Both the House and Senate versions are structured as deductions, not full exclusions of tips from taxable income. So, workers would still report their tips and claim the deduction when filing their taxes, rather than having tips automatically excluded from taxable income.

House Republicans narrowly passed President Trump's budget megabill. But the legislation still faces a rocky road in the Senate, where multiple GOP lawmakers are calling for significant rewrites. Susan Glasser,

At the center of the sweeping bill is trillions in tax cuts, which Republicans aim to partially offset through changes to safety net programs like Medicaid and SNAP.

According to a 2022 CBO report, the baseline household income for Americans in the lowest tenth of the distribution is $32,200, after taxes and transfers. That figure increases to $444,600 for Americans in the highest tenth of the distribution.

Republican tax bill could cost $3.8 trillion over 10 years as its tax cuts surpass spending reductions, according to one analysis.