House Republicans Advance “One Big Beautiful Bill”

On May 18, 2025, House Republicans moved forward with a sweeping tax reform and spending package — unofficially titled the “One Big Beautiful Bill” — despite earlier pushback from within their own ranks. After weeks of negotiations and internal debate, the House Budget Committee voted 17–16 to advance the legislation, with four Republicans voting “present” to avoid blocking its progress.

This bill combines permanent tax cuts with new spending priorities, setting the stage for one of the most consequential budget showdowns of 2025.

What’s in the Bill?

The legislation is massive in scope, with provisions that reach across tax, entitlement, and national security policy. Key highlights include:

1. Permanent Extension of TCJA Tax Cuts

The bill locks in the individual tax rate reductions and increased standard deductions introduced under the 2017 Tax Cuts and Jobs Act, which are currently set to expire at the end of 2025.

2. New Targeted Tax Exemptions

Republicans introduced several new tax relief measures, including:

• Tax-free overtime pay

• Deductions for tips

• Interest deduction for auto loans on American-made vehicles

  
  

These provisions are designed to appeal to middle-income workers and service industry employees.

3. $30,000 SALT Deduction Cap

The bill raises the cap on the state and local tax deduction (SALT) from $10,000 to $30,000 for joint filers earning under $400,000 — a move aimed at moderating GOP lawmakers from high-tax states like New York and California.

4. Border Security and Defense Funding

The bill includes increased spending for southern border security, national defense, and veterans programs — key priorities for Speaker Mike Johnson and fiscal conservatives.

5. Deficit Reductions Through Delayed Cuts

The bill’s spending cuts — including Medicaid work requirements and reductions to green energy subsidies — are structured to phase in over time, a design criticized by opponents as front-loading benefits and back-loading fiscal responsibility.

Why It’s Facing Resistance

While the bill passed committee, it didn’t come without friction.

• Fiscal conservatives are concerned about the $3.3 trillion projected deficit impact over 10 years.

• Moderate Republicans argue the SALT cap should be even higher to adequately serve constituents in high-cost states.

• Democrats oppose the cuts to green energy programs and argue that the bill’s tax breaks are skewed toward wealthier Americans and corporations.

  
  

What Happens Next?

Speaker Johnson is aiming to bring the bill to a full House floor vote by the end of May. With Republicans holding a slim majority, the leadership hopes to avoid further defections and pass the bill largely along party lines.

Final Takeaway

The “One Big Beautiful Bill” represents the clearest vision yet of the GOP’s tax policy.

At Bizora AI, we’ll continue monitoring this legislation’s evolution and break down what it means for tax planning, compliance, and firm strategy.