The U.S. House of Representatives narrowly passed President Trump’s One Big Beautiful Bill Act this morning on a vote of 215-214. The Council’s legislative agenda is largely wrapped into this bill.
Relative to our top legislative priorities, the bill achieves the following:
- Permanent extension with an increased deduction for the 199A provision of the Tax Cuts & Jobs Act, impacting pass-through entities
- No changes to tax treatment of employer-sponsored health insurance
- Full restoration of 163(j) policies, increasing the deduction for business interest expenses
A more detailed analysis of the legislation from our partners at Steptoe can be found here.
The bill is now sent to the U.S. Senate where some key portions dividing Republicans will likely be changed. The bill is being considered under reconciliation rules, meaning it needs only a simple majority to pass the United States Senate, as opposed to the typical 60-vote threshold required by Senate filibuster rules. However, to qualify for reconciliation, every provision must have a financial impact on the federal budget.
The One Big Beautiful Bill Act is a partisan measure, but Republican leadership cannot afford to lose more than three votes in either chamber. The controversial issues dividing the party are the restoration of State and Local Tax (SALT) deductions in high-tax states, and the depth of Medicaid cuts.
We remain guarded on our priorities throughout this process and will keep you apprised of further developments as they unfold.
More information on The Council’s legislative priorities can be found on our website.
