Trump's "Beautiful Big Bill" is coming, the 389-page draft may cause a commotion in Congress.

Source: Jin10

On Monday, U.S. President Trump called on Congressional Republicans to support what he referred to as the "Beautiful Big Bill", a comprehensive measure that combines tax cuts, immigration reform, and a range of domestic priorities into a single coordinated initiative.

Trump wrote on his "Truth Social" platform: "This week, Republicans will hold a meeting on the main contents of the 'Beautiful Bill' in the tax, energy, and agriculture committees." He urged lawmakers to support House Ways and Means Committee Chairman Jason Smith, Energy and Commerce Committee Chairman Brett Guthrie, and Agriculture Committee Chairman Glenn "GT" Thompson. "We must win! Now, with significant reductions in drug prices, along with a large amount of tariff revenue, our 'Beautiful Bill' has become larger and more remarkable. America's golden age is about to arrive."

Trump made the above comments before planning to visit Saudi Arabia, Qatar, and the UAE. At the same time, his administration announced an executive action requiring pharmaceutical companies to provide "most favored nation pricing" to the U.S. market, reducing drug prices by as much as 90%. He also criticized Democrats, accusing them of amending the bill before he held a press conference in an attempt to "destroy our country."

Trump added, "When I return from the Middle East - where I will bring significant results for the United States - we will work together to address all outstanding issues. But there shouldn't be many outstanding issues - this bill is fantastic."

Despite the urgency of his message, progress on Capitol Hill has been slow. To change this situation, House Speaker Mike Johnson has set a deadline for the House to pass the reconciliation package before Memorial Day. The Republican leadership hopes to finalize the bill before July 4th, which aligns with Treasury Secretary Yellen's request to include an increase in the debt ceiling in the package.

Republican Bill Draft Released

On Monday, House Republicans unveiled a 389-page draft of the "Beautiful Act", confirming several key policy pillars previously hinted at by leadership. The most important of these is the 5% remittance tax on international money transfers, aimed at funding border security, which includes providing new refundable credits for verified U.S. remitters and strict compliance rules.

As a significant reversal of Biden-era environmental policies, the bill will terminate or phase out numerous clean energy tax credits, including tax credits for residential solar, energy-efficient homes, and hydrogen production, and impose strict restrictions on components from "prohibited foreign entities."

The legislation also introduces a new federal income tax deduction for eligible tips and overtime compensation, aimed at the working class. However, these benefits explicitly exclude high earners, service industry owners, and non-traditional tipping sectors, and require employees and their spouses to have Social Security numbers to qualify—this increases compliance barriers and may rekindle partisan disputes over identification requirements.

In addition to these provisions, the bill** extends the provisions of the Trump tax law of 2017 to increase estate and gift tax exemptions, as well as increase the deduction cap on state and local taxes (SALT) to $30,000 for individuals, allowing people with higher incomes to pay much less tax. This could spark a new round of conflict with Blue State Republicans who are still pushing for a full repeal of the provision.

The bill also introduced a cap on itemized deduction tax benefits, restored restrictions on deductions for unexpected losses and relocation expenses, and completely eliminated miscellaneous itemized deductions—these provisions are likely to incur strong opposition from Democrats, especially those from high cost-of-living states.

Other noteworthy points include:

• Provide tax relief on overtime pay before 2028;
• Raise the debt ceiling by 4 trillion dollars;
• Create tax-free "Make America Great Again (MAGA)" savings accounts for children;
• Does not include the new millionaire tax bracket;
• Restrict or terminate tax incentives for itemized deductions;
• To qualify for the Earned Income Tax Credit (EITC), a certificate must be provided, and penalties will be imposed for false statements;
• Terminate the IRS direct filing program;
• Terminate the tax-exempt status of any organization that supports terrorist organizations;
• Increase the penalty for unauthorized disclosure of taxpayer information to $250,000 or imprisonment for 10 years;
• Permanently expand the Child Tax Credit and require a Social Security number to apply;
• Permanently increase the qualified enterprise income deduction ratio from 20% to 23%;
• Permanently limit gambling losses to the range of profits.

The Key Committee Begins to Address Policy Conflicts

At the same time, three important committees in the House of Representatives—the Committee on Ways and Means, the Committee on Energy and Commerce, and the Committee on Agriculture—plan to revise their respective portions of the bill this week. According to Punchbowl News, the House Budget Committee is expected to consolidate the legislation before submitting it to the Rules Committee for a House vote next week.

The fundraising committee announced the initial tax draft last Friday, and a more comprehensive version will be released later on Monday local time. The proposal suggests taxing university endowment funds and imposing a controversial remittance tax on international money transfers, aimed at funding border enforcement. Although Trump had previously suggested a new tax bracket for the super-rich, Republicans did not do so.

The bill also includes significant modifications to the clean energy tax credits in the Inflation Reduction Act. The bill proposes to eliminate the electric vehicle tax credit by the end of the year, gradually phasing out other credits over time, and increasing procurement source requirements. The transferability of the tax credits will also be restricted.

Strong Opposition to Healthcare Cuts and Relaxation of AI Regulations

The Energy and Commerce Committee released its draft last Sunday evening, triggering anger from both the right and the centrists. The formula for the federal matching aid percentage (FMAP) for Medicaid was not changed, and there is no per capita cap, which angered conservatives, while moderates remained cautious.

The analysis released by the Democrats' Congressional Budget Office estimates that the healthcare provisions in the bill will reduce federal spending by $715 billion over ten years, but will cause 13.7 million Americans to lose their health insurance. Congressman Frank Pallone Jr. (Democrat from New Jersey) called the proposal "catastrophic."

The bill also proposes a 10-year moratorium on most state-level regulations targeting artificial intelligence, which could be a boon for tech companies, but under the Senate's "Byrd Rule," this could become a point of contention. Additionally, the bill requires the Department of Commerce and the Federal Communications Commission to designate 600 MHz of spectrum for auction while protecting certain defense-related spectrum from commercial use.

SALT Dispute Threatens Republican Unity

House Speaker Johnson faces a crucial test on Monday as he meets with Blue State Republicans and the fundraising committee regarding the SALT deduction cap issue. Among the lawmakers, Elise Stefanik, Mike Lawler, Nick LaLota, Andrew Garbarino, and Young Kim have rejected the proposed $30,000 cap, arguing that it poses political risks in their districts—this cap has already been included in the published draft.

Stefanik opposed the 2017 tax law over the SALT deduction cap issue, and her relationship with Johnson is tense. Reports indicate that Lawler is considering a run for governor, representing a swing district. Garbarino has publicly warned that a weak agreement on the SALT deduction issue could jeopardize his re-election chances. LaLota is under pressure over Medicaid cuts, while Kim Yingyu is betting his political reputation on providing relief for California homeowners.

Some Republican leaders believe that the SALT overhaul could undermine efforts to pass the entire bill unless Johnson can garner enough support from dissenting groups.

Reforms to the Supplemental Nutrition Assistance Program (SNAP) in the Farm Bill

On Tuesday evening, the Agriculture Committee will revise the sections of the bill that it oversees, including a proposal to shift the costs of the Supplemental Nutrition Assistance Program (SNAP) to the states. The plan also incorporates key provisions of the bipartisan farm bill and has been restructured to comply with reconciliation rules. Moderates like Representative Don Bacon (Republican from Nebraska), who initially hesitated, have now expressed support.

House Republicans are betting heavily on this legislative push, attempting to expand and extend the provisions of Trump's 2017 tax law while significantly cutting major components of the social safety net. There are only eight legislative days left before the recess, and there is no guarantee that the Senate will follow suit, putting Republican leaders in a politically challenging balancing act.