H.R. 1, Public Law 119-21

The law makes sweeping changes to taxes and safety-net eligibility, commits major funding to defense and border enforcement, expands fossil-fuel development, and cancels many climate and clean-energy programs. It also raises the federal debt limit by $5 trillion.

What the law does ​

• Makes lower individual tax rates, the larger standard deduction, expanded business deductions, and several family and investment tax benefits permanent or more generous.
• Creates temporary deductions for tips, overtime premiums, vehicle-loan interest, and seniors, while establishing tax-advantaged accounts for children.
• Tightens Medicaid, health insurance tax credit, and SNAP eligibility and verification, adds Medicaid work requirements, shifts some SNAP costs to states, and creates a $50 billion rural health program.
• Expands farm supports, crop insurance, agricultural disaster aid, defense procurement, military readiness, border barriers, immigration detention, removals, and immigration-related fees.
• Requires additional federal oil, gas, coal, and timber leasing, lowers or limits some royalties, and funds petroleum reserves, critical minerals, nuclear power, and energy infrastructure.
• Ends or accelerates many clean-energy tax credits, repeals the Greenhouse Gas Reduction Fund, and cancels unobligated climate, conservation, clean-transportation, and environmental funding.
• Changes federal student loans, repayment plans, Pell Grants, and college accountability while creating Workforce Pell Grants for qualifying short-term training.
• Funds Coast Guard assets, air traffic control modernization, NASA exploration, spectrum auctions, commercial space oversight, and federal law enforcement.

Who it affects ​

• Taxpayers, families, seniors, tipped and overtime workers, small businesses, manufacturers, farmers, and charitable organizations.
• Medicaid, Marketplace, SNAP, Medicare, student-aid, and unemployment-benefit recipients.
• Service members, veterans’ families, immigrants, asylum seekers, border communities, federal employees, and law enforcement personnel.
• Energy producers, clean-energy developers, colleges, healthcare providers, states, local governments, and rural communities.

Context ​

The law combines reconciliation changes across agriculture, defense, finance, energy, healthcare, education, transportation, immigration, environmental policy, and federal budgeting.

Breakdown ​

TITLE I, COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY ​

This title changes federal nutrition programs, farm commodity supports, disaster aid, crop insurance, conservation, research, trade promotion, and other rural programs. It revises SNAP benefit calculations and eligibility, shifts some SNAP costs to states, expands or extends many farm support programs, and directs new funding to selected agricultural initiatives. It also cancels certain unobligated forestry and conservation funds.

Key takeaways

• SNAP benefits will continue to use the 2021 Thrifty Food Plan, with fixed household-size adjustments, annual inflation updates beginning October 1, 2025, and no cost increase from future market-basket reevaluations.
• The title changes SNAP work-rule exemptions, narrows eligibility based on immigration status, excludes internet fees from shelter deductions, limits some utility allowances, reduces the federal share of state administrative costs, and requires states with higher payment error rates to pay part of benefit costs.
• Farm commodity programs are extended through the 2031 crop year with higher reference prices, up to 30 million additional base acres, higher payment limits, revised income rules, and updated support for grains, cotton, sugar, dairy, and other commodities.
• Agricultural disaster aid is expanded for livestock losses, unborn livestock, drought-affected grazing, farm-raised fish losses caused by birds, honeybee losses, and damaged trees.
• Crop insurance support is increased through broader beginning-farmer benefits, higher coverage and premium subsidies, added payments to insurance providers, more compliance funding, and a poultry insurance pilot program.
• The title funds conservation, agricultural exports, research, specialty crops, animal disease programs, and other rural initiatives while rescinding specified unobligated forestry and conservation balances.

TITLE II, COMMITTEE ON ARMED SERVICES ​

This title provides additional fiscal year 2025 defense funding, generally available through September 30, 2029, for military personnel, weapons, shipbuilding, missile defense, nuclear forces, readiness, technology, cybersecurity, and operations. It also invests in the defense industrial base and critical-mineral supply chains, expands certain military housing authorities, funds Indo-Pacific and border missions, and requires oversight and project-level military construction spending plans.

Key takeaways

• The title funds military housing, health care, housing allowances, child care, education, bonuses, spouse licensing, and other quality-of-life programs for service members and their families.
• It makes major investments in naval shipbuilding, military aircraft, munitions, missile defense, nuclear forces, unmanned systems, artificial intelligence, advanced communications, and other emerging technologies.
• It supports defense production through expanded manufacturing capacity, workforce and supplier development, critical-mineral stockpiles and supply chains, and federal loans and loan guarantees.
• It funds military readiness through depot and shipyard modernization, equipment repairs, spare parts, facility improvements, exercises, and operational support.
• It provides resources for Indo-Pacific infrastructure and operations, military space and cyber capabilities, and Defense Department support for border, counter-drug, and migrant detention missions.
• It temporarily expands investment and contracting authority for privatized military housing through September 30, 2029, while funding Defense Department oversight and requiring detailed military construction spending plans.

TITLE III, COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS ​

This title reduces the funding cap for the Consumer Financial Protection Bureau, cancels unused funding for a multifamily housing retrofit program, and closes the Securities and Exchange Commission Reserve Fund. It also provides $1 billion for activities under the Defense Production Act.

Key takeaways

• The Consumer Financial Protection Bureau’s funding cap is reduced from 12 percent to 6.5 percent of the Federal Reserve System’s inflation-adjusted operating expenses.
• Unused funding for the Green and Resilient Retrofit Program for multifamily housing is canceled.
• The Securities and Exchange Commission may temporarily use previously obligated Reserve Fund money for ongoing activities through September 30, 2025.
• On October 1, 2025, all remaining Securities and Exchange Commission Reserve Fund balances are transferred to the Treasury’s general fund, and the account is closed.
• The Securities and Exchange Commission’s whistleblower fund remains available without further appropriation or a fiscal-year limit to pay whistleblower awards.
• The title provides $1 billion for Defense Production Act activities for fiscal year 2025, available through September 30, 2027.

TITLE IV, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ​

This title provides major funding for Coast Guard readiness, air traffic control modernization, and NASA exploration and infrastructure programs. It extends federal authority to auction spectrum, directs additional spectrum auctions and reallocations, and establishes fees for licensed commercial space launches and reentries. It also eliminates certain fuel-economy penalties, changes airport lease and travel-promotion payments, and rescinds several previously approved funding balances.

Key takeaways

• The Coast Guard receives $24.59 billion for aircraft, cutters, icebreakers, shore facilities, maintenance, maritime awareness, and autonomous systems, with the funding available through September 2029.
• The Federal Communications Commission’s general spectrum-auction authority is extended through September 2034, and federal agencies must identify and auction substantial additional spectrum for commercial wireless use while allowing the President to protect frequencies needed for national security.
• The Federal Aviation Administration receives $12.52 billion for telecommunications and radar upgrades, runway and weather systems, air traffic facility construction and consolidation, remote towers, and controller training, with quarterly spending reports to Congress.
• NASA receives nearly $10 billion for a Mars communications orbiter, the Gateway program, Artemis IV and V, Orion, the International Space Station, space-center infrastructure, and other specified projects.
• Beginning in 2026, licensed commercial launches and reentries must pay payload-based user fees subject to annual caps, with 70 percent of collections available for commercial space licensing and related activities.
• The title sets applicable corporate average fuel-economy civil penalties at zero, increases future Metropolitan Washington Airports lease payments, reduces annual transfers to the Travel Promotion Fund, and rescinds unobligated funds from specified NOAA, aviation-technology, and wireless supply-chain programs.

TITLE V, COMMITTEE ON ENERGY AND NATURAL RESOURCES ​

This title expands federal oil, gas, coal, and timber leasing and production, including required lease sales onshore, offshore, and in Alaska. It lowers or limits several royalty rates, sets fees and revenue-sharing rules for energy development on federal land, and ends or withdraws funding for several earlier programs. It also funds the Strategic Petroleum Reserve, energy financing, artificial intelligence research, water infrastructure, and events marking the United States’ 250th anniversary.

Key takeaways

• The Interior Department must resume quarterly onshore oil and gas lease sales, hold at least four annual sales in each of nine listed states, and offer qualifying nominated land under specified deadlines and terms.
• The title requires at least 30 offshore oil and gas lease sales in the Gulf region through 2040, six Cook Inlet sales through 2032, four additional Coastal Plain sales, and at least five National Petroleum Reserve–Alaska sales.
• It restores earlier oil and gas royalty rules, caps offshore royalties at 16⅔ percent, repeals the federal charge on extracted methane, temporarily limits coal royalties to 7 percent through September 2034, and increases Alaska’s share of certain leasing revenue.
• The title accelerates pending coal leases, makes at least 4 million additional federal acres available for coal leasing, authorizes specified federal coal mining, and requires rising timber sales and long-term timber contracts through 2034.
• Wind and solar projects on federal land must pay acreage rent before generation and annual capacity fees afterward, while 25 percent of covered project revenue goes to the host state and 25 percent goes to affected counties beginning in 2026.
• The title provides funding for Strategic Petroleum Reserve repairs and petroleum purchases, energy and critical-mineral financing, Energy Department artificial intelligence work, water conveyance and storage improvements, and the nation’s 250th anniversary, while canceling unobligated funds from several earlier programs.

TITLE VI, COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS ​

This title cancels unobligated funding for a wide range of environmental, climate, clean transportation, federal building, and environmental review programs, and it repeals the Greenhouse Gas Reduction Fund. It provides $256.657 million for repairs, restoration, maintenance, and security at the John F. Kennedy Center for the Performing Arts. It also creates an optional fee process under which project sponsors can pay for expedited environmental assessments or environmental impact statements.

Key takeaways

• Unobligated funding is canceled for programs involving clean heavy-duty vehicles, diesel emissions, air pollution, low-emissions electricity, methane reduction, greenhouse gas planning and reporting, environmental justice, climate data, and endangered species recovery plans.
• The Greenhouse Gas Reduction Fund is repealed, and its remaining unobligated funding is canceled.
• Unobligated funding is also canceled for neighborhood access and equity grants, low-carbon construction and transportation materials, federal building assistance, sustainable federal technologies, and environmental review implementation.
• The title changes a date in the methane emissions program from calendar year 2024 to calendar year 2034.
• The Kennedy Center receives $256.657 million, available through September 30, 2029, with no more than 3 percent allowed for administrative costs.
• Project sponsors may pay 125 percent of anticipated preparation or supervision costs to obtain deadlines of 180 days for an environmental assessment and one year after the notice of intent for an environmental impact statement.

TITLE VII, FINANCE (part 1 of 5) ​

This part of Title VII makes many individual and small-business tax provisions permanent or more generous, including lower tax rates, the larger standard deduction, the child tax credit, the qualified business income deduction, and estate and gift tax exemptions. It also changes deductions for state and local taxes, mortgage interest, disaster losses, educator and moving expenses, gambling losses, and several other items. New temporary deductions cover qualifying tips, overtime pay, and interest on certain U.S.-assembled vehicle loans, while new tax-advantaged “Trump accounts” allow savings for children and include a federal contribution pilot program.

Key takeaways

• The title permanently extends lower individual tax rates and the increased standard deduction, raises the child tax credit to $2,200, and generally continues the elimination of personal exemptions.
• Taxpayers age 65 or older may claim a temporary $6,000 deduction through 2028, subject to income limits, Social Security number requirements, and joint-filing rules for married taxpayers.
• The state and local tax deduction cap rises to $40,000 for 2025, increases through 2029, phases down for higher-income taxpayers, and returns to $10,000 after 2029.
• For 2025 through 2028, eligible taxpayers may deduct up to $25,000 of qualifying tips, qualifying overtime premiums up to $12,500 per person, and up to $10,000 of interest on qualifying new U.S.-assembled passenger vehicle loans, with income-based reductions and reporting requirements.
• The title expands or extends tax treatment for small-business income, ABLE accounts, certain disaster losses, intelligence-community moving expenses, student loans discharged because of death or permanent disability, and hazardous-duty service in specified countries.
• The title creates tax-advantaged Trump accounts for minors, generally caps ordinary annual contributions at $5,000 before age 18, permits certain employer and charitable contributions, and provides a $1,000 federal contribution for eligible U.S.-citizen children born from 2025 through 2028.

TITLE VII, FINANCE (part 2 of 5) ​

This title makes broad changes to business taxation intended to encourage domestic investment, research, manufacturing, and employee benefits. It permanently allows immediate deductions for many business assets and domestic research costs, creates or expands incentives for production facilities, semiconductor manufacturing, paid leave, and spaceports, and adjusts limits on interest and other deductions. It also revises international tax rules governing foreign income, foreign tax credits, controlled foreign corporations, and payments that erode the U.S. tax base.

Key takeaways

• Businesses may permanently deduct 100 percent of the cost of qualifying property acquired after January 19, 2025, with a temporary option to use lower percentages for the first tax year ending after that date.
• Domestic research and software-development costs generally become immediately deductible for tax years beginning after 2024, while foreign research costs continue to be deducted over 15 years and transition rules allow certain earlier domestic costs to be recovered faster.
• The title raises the immediate-expensing limit for certain business assets to $2.5 million, creates a 100 percent deduction for qualifying U.S. production property, and increases the advanced manufacturing investment credit from 25 percent to 35 percent.
• The paid family and medical leave credit becomes permanent and may be based on qualifying wages or insurance premiums, while new meal-deduction exceptions apply to certain fishing vessels and remote fish-processing facilities.
• Spaceports become eligible for the same type of tax-exempt facility bond financing available to airports, including qualifying manufacturing, launch, reentry, flight-control, and cargo facilities.
• International provisions revise deductions and foreign tax credits for foreign income, increase the base erosion minimum tax rate to 10.5 percent, permanently extend the related-controlled-foreign-corporation look-through rule, and update ownership and income-allocation rules for foreign corporations.

TITLE VII, FINANCE (part 3 of 5) ​

This title makes broad, mostly permanent tax changes for families, education, community development, charitable giving, small businesses, rural areas, and certain tax-exempt institutions. It expands tax benefits for child care, adoption, education, housing, investment in disadvantaged communities, small-business stock, farming, and rural lending, while increasing some taxes or limits on wealthy colleges, tax-exempt organizations, and charitable deductions. Most provisions take effect between 2025 and 2027, although some begin upon enactment.

Key takeaways

• Families receive larger employer child care incentives, a partly refundable adoption credit, recognition of tribal special-needs determinations, a higher dependent-care assistance limit, and an expanded child and dependent care credit.
• Education changes create a federal credit of up to $1,700 for contributions to approved scholarship organizations in participating states, make qualifying scholarships tax-free, permanently allow tax-free employer student-loan payments, and expand eligible uses of 529 accounts.
• The title raises the investment-income tax on certain private colleges and universities based on endowment size and expands the tax on high compensation to cover all current and former employees of affected tax-exempt organizations.
• Community development provisions renew Opportunity Zones on a 10-year cycle with new eligibility, rural incentives, reporting, and public outcome data, while permanently expanding low-income housing and New Markets tax credits.
• Charitable-giving rules provide a permanent deduction of up to $1,000, or $2,000 for joint filers, for nonitemizers, but generally allow individual deductions only above 0.5 percent of income and corporate deductions only above 1 percent of taxable income.
• Small-business and rural provisions expand the tax exclusion for qualified small-business stock, restore the $20,000-and-200-transaction reporting threshold for third-party payment networks, raise other payment-reporting thresholds, provide tax benefits for sound recordings and rural loans, reduce federal firearm transfer and making taxes for certain devices to zero, and allow installment tax payments on qualifying farmland sales.

TITLE VII, FINANCE (part 4 of 5) ​

This title ends or accelerates the expiration of many clean-energy tax benefits, including credits for clean vehicles, home and building efficiency, hydrogen, wind, solar, and advanced manufacturing. It restricts energy tax benefits involving certain foreign-controlled or foreign-influenced entities while extending or expanding selected benefits for clean fuels, carbon capture, nuclear power, fossil-fuel development, and other energy activities. It also changes customs and business tax rules, creates a 1 percent tax on certain cash-funded remittance transfers, strengthens enforcement of employee retention credit claims, and adds identification requirements for education tax credits. Finally, it funds a Treasury report on replacing the IRS Direct File program with public-private free-filing options.

Key takeaways

• Clean vehicle credits generally end for vehicles acquired after September 30, 2025, while several home, building, refueling, hydrogen, wind, solar, and manufacturing incentives end or phase out between 2025 and 2034.
• Nuclear, clean electricity, manufacturing, clean fuel, and carbon-capture credits are denied or restricted when taxpayers, projects, components, or contractual arrangements involve defined prohibited foreign entities.
• The clean fuel production credit is extended through 2029, limited mainly to feedstocks from the United States, Mexico, or Canada, and revised to prevent duplicate credits and change emissions calculations.
• The title makes the limit on excess business losses permanent, changes taxation of partnership payments and executive compensation, and creates a 1 percent tax on remittances funded with cash or similar physical instruments after 2025.
• Customs violations involving low-value imports face added civil penalties, and the commercial low-value shipment exception is repealed beginning July 1, 2027.
• The title limits new employee retention credit claims, expands enforcement and penalties, requires Social Security numbers for education credits, and provides $15 million for a report on replacing IRS Direct File.

TITLE VII, FINANCE (part 5 of 5) ​

This title makes broad changes to Medicaid, Medicare, health insurance tax credits, health savings accounts, and rural health funding. It tightens eligibility and verification rules, adds Medicaid work or community-engagement requirements and cost sharing for certain adults, restricts several financing practices, and pauses selected federal enrollment and nursing-home staffing rules through September 2034. It also increases the federal debt limit by $5 trillion and bars federally funded unemployment benefits for people whose base-period wages reach $1 million.

Key takeaways

• States must strengthen Medicaid enrollment checks, including identifying people enrolled in multiple states, regularly checking addresses and death records, conducting more frequent eligibility reviews for certain adults, and screening providers against death records.
• Beginning in 2027, many adults covered through Medicaid expansion must generally document at least 80 hours per month of work, community service, work-program participation, or qualifying education, subject to listed exclusions and hardship rules.
• The title narrows federal health coverage and premium tax credit eligibility based on immigration status, strengthens Marketplace verification, requires repayment of excess advance premium tax credits without the prior cap, and reduces federal reimbursement for emergency Medicaid in expansion states.
• The title limits Medicaid provider taxes and state-directed payments, requires federal budget neutrality for Medicaid demonstration projects, shortens retroactive coverage periods, and temporarily blocks Medicaid payments to certain nonprofit reproductive health providers that perform abortions outside specified exceptions.
• The title expands some patient options by supporting additional home- and community-based services, making telehealth deductible relief permanent, allowing bronze and catastrophic plans to qualify for health savings accounts, and permitting health savings account funds for qualifying direct primary care arrangements.
• The title creates a $50 billion rural health transformation program for fiscal years 2026 through 2030, raises the federal debt limit by $5 trillion, and ends federally funded unemployment payments to people with at least $1 million in base-period wages.

TITLE VIII, COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS ​

This title makes broad changes to federal student aid beginning mainly in 2026, including how family assets affect aid, student and parent loan limits, repayment plans, Pell Grants, and program accountability. It also funds student-loan administration, a national heroes statue project, and stronger screening of potential sponsors for unaccompanied migrant children, while temporarily restoring earlier rules for borrower-defense and closed-school loan discharges.

Key takeaways

• Starting July 1, 2026, financial-aid calculations exclude a family’s primary farm, a family-controlled business with no more than 100 employees, and a family-controlled commercial fishing business and related assets.
• For instruction beginning on or after July 1, 2026, graduate and professional students may no longer receive federal PLUS loans, new annual and lifetime borrowing limits apply to students and parents, and some students already enrolled may temporarily remain under prior rules.
• The title creates a new income-based Repayment Assistance Plan, narrows repayment choices for new loans, ends existing income-contingent repayment plans in 2028, limits some deferments and forbearances for newer loans, and allows borrowers to rehabilitate defaulted loans twice.
• Beginning in the 2026–2027 award year, Pell Grant rules account for foreign income, exclude students with high student aid indexes or enough nonfederal grant aid to cover attendance costs, and create Workforce Pell Grants for qualifying short-term training programs.
• Starting July 1, 2026, college programs whose graduates repeatedly earn less than specified working-adult benchmarks may lose access to federal Direct Loan funds after notice and an opportunity to appeal.
• The title provides $1 billion for federal student-loan administration, $40 million for statues for the National Garden of American Heroes, and $300 million for screening sponsors and protecting unaccompanied migrant children, and it restores earlier borrower-defense and closed-school discharge rules for loans first issued before July 1, 2035.

TITLE IX, COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS ​

This title provides major new funding for border barriers, Customs and Border Protection personnel and facilities, immigration detention, border technology, and state and local security efforts. It also strengthens eligibility checks for federal employee health benefits, funds pandemic spending oversight, and supports efforts to improve executive branch budgeting and accounting.

Key takeaways

• The title provides $46.55 billion for border barriers, access roads, surveillance equipment, and related construction and ground preparation through September 2029.
• It provides more than $12 billion for additional Customs and Border Protection personnel, bonuses, vehicles, and facilities, while barring funding for processing coordinator recruitment, hiring, or training after October 31, 2028.
• It provides $45 billion for detention of single adults and families during immigration proceedings and, when removal is ordered, until removal occurs.
• It provides about $6.17 billion for border screening, surveillance, air and marine capabilities, biometric systems, and efforts to stop narcotics, while limiting funding for untested autonomous surveillance towers.
• It funds state and local security activities, including drone-threat detection, the 2026 FIFA World Cup, the 2028 Olympics, Operation Stonegarden, border-related projects, presidential residence protection, and reimbursement for support of the Department of Homeland Security's border mission.
• It requires stronger verification and audits of family-member eligibility for federal employee health coverage, provides $88 million for pandemic spending oversight through 2034, and gives the Office of Management and Budget $100 million to identify budget and accounting efficiencies.

TITLE X, COMMITTEE ON THE JUDICIARY ​

This title creates and increases numerous immigration-related fees, generally starting in fiscal year 2025 and rising with inflation, while directing the proceeds to immigration agencies or the Treasury. It also provides major funding through 2029 for immigration enforcement, removals, law enforcement staffing and training, prisons, the Secret Service, and Justice Department activities. In addition, it funds federal court reporting and training and extends and expands compensation for people exposed to radiation from nuclear testing, uranium work, and Manhattan Project waste.

Key takeaways

• New or increased fees apply to asylum applications, employment authorization, parole, temporary protected status, nonimmigrant visas, travel records, immigration court filings and appeals, certain arrests, and apprehensions between ports of entry.
• Most immigration fees cannot be waived or reduced, generally increase with inflation after fiscal year 2025, and are deposited in whole or in part into the Treasury or immigration agency accounts.
• The title provides $2.055 billion for broader Department of Homeland Security immigration activities and $29.85 billion for Immigration and Customs Enforcement staffing, transportation, facilities, technology, detention, and removal operations.
• It provides additional funding for federal law enforcement training, the Justice Department, state and local immigration-related enforcement costs, the Bureau of Prisons, and the Secret Service.
• It funds federal court data collection concerning orders that grant relief to people who are not parties to cases against the federal government and funds judicial training concerning such claims.
• It extends the Radiation Exposure Compensation Fund through December 31, 2028, expands eligibility for nuclear testing and uranium-related claims, and creates compensation for qualifying exposure to Manhattan Project waste in specified areas.