What the Senate Republican tax-and-spending bill means for your money
Trump’s 'big beautiful' bill could enact broad changes to household finances
Senate Republicans on Tuesday approved their version of PresidentDonald Trump's multitrillion-dollartax-and-spending package, which could broadly impact millions of Americans' wallets.
Similar tothe House'sOne Big Beautiful Bill Act advanced in May, the Senate legislation aims to make permanent Trump's2017 tax cuts, while adding new tax breaks fortip income, overtime pay andauto loans, among other provisions.
If enacted, the bill could also slash spending on social safety net programs such asMedicaidand SNAP,end tax credits tied to clean energyand overhaulstudent loans.
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The spending package could still see changes as it returns to the lower chamber for approval. But a House floor vote could come this week to meetTrump's July 4 deadline.
Here are some of the key provisions to watch — and how those measures could affect household finances.
Follow along from start to finish, or use the table of contents to jump to the section(s) you want to learn more about.
'SALT' deduction
Since 2018, the $10,000 cap on thestate and local tax deduction, known as SALT, has been a critical issue for certain lawmakers in high-tax states such as New York, New Jersey and California.
The SALT deduction — which lets taxpayers who itemize deduct all or some of their state and local income and property taxes — was unlimited for filers before 2018. But thealternative minimum taxreduced the benefit for some wealthier Americans.
A sticking point for some House lawmakers, the lower chamberapproved a permanent $40,000 SALT limitstarting in 2025. That benefit begins to phaseout, or decrease, for consumers who have more than $500,000 of income.
TheSenate version of the billwould also lift the cap to $40,000 starting in 2025. It also begins to phaseout at $500,000. Both figures would increase by 1% yearly through 2029, and the $40,000 limit would revert to $10,000 in 2030.
"If you raise the cap, the people who benefit the most are going to be upper middle-income," since lower earners typically don't itemize tax deductions, Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center,previously told CNBC.
The Senate bill also preserves aSALT cap workaroundfor pass-through businesses, which allows owners to avoid the $10,000 SALT limit. By contrast, the House bill would eliminate the strategy for certain white-collar professionals.
—Kate Dore
Child tax credit
The child tax credit gives families with qualifying dependent children a tax break. It's a credit, so it reduces their tax liability dollar-for-dollar.
Trump's 2017 tax cuts temporarily boosted the maximumchild tax creditto $2,000 from $1,000, an increase that will sunset after 2025 without an extension from Congress.
If enacted, the Senate bill wouldpermanently bumpthe biggest credit to $2,200 starting in 2025 and index this figure for inflation starting in 2026.
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