2025 Reconciliation Act

What this does

This is the 2025 budget reconciliation act, a single 338-section package that changes tax, health, energy, immigration, agriculture, defense, and education law at once. It is far too large to lay out in full, so what follows are its major components; a single yes vote carried the entire 338-section package, and the complete detail is in the bill text. On taxes, Congress made the reduced individual income tax rates permanent by striking their scheduled end after 2025, raised the standard deduction, and created new deductions including one for tips capped at $25,000. Congress terminated the clean-vehicle tax credits for vehicles acquired after September 30, 2025. On health, Congress required states to make Medicaid eligibility conditional on 80 hours a month of work or equivalent activity, beginning no later than 2027. On immigration, Congress appropriated $46,550,000,000 to build the border wall system. Congress added new work-requirement terms to SNAP and shifted more program costs onto states. Congress raised the federal debt limit by $5,000,000,000,000. The bill also opens federal land to oil, gas, and coal leasing, caps and terminates student-loan programs, and rescinds a long list of climate and clean-energy funds.