An act to provide for reconciliation pursuant to title II of H. Con. Res. 14.

Bill Summary

H.R. 1 is a sweeping, multi-title reconciliation package that combines border enforcement, energy and environmental policy reversals, substantial defense and homeland security surges, Medicaid/ACA and SNAP changes, large tax code rewrites and permanency for many 2017 Tax Cuts and Jobs Act (TCJA) provisions, agriculture and rural investments, immigration fee overhauls, and assorted education, student loan, and judiciary measures. It raises the statutory debt limit by $5 trillion while simultaneously rescinding tens of billions in Inflation Reduction Act (IRA) climate and green-building funds and eliminating or cutting a wide array of clean energy tax credits.

Border, immigration, and enforcement: The bill allocates tens of billions for border infrastructure and barrier construction, CBP personnel and vehicles, detention capacity (including family residential space), nonintrusive inspection technology at ports of entry, and State/local grants tied to border security and fentanyl interdiction. It tightens asylum and parole through a raft of new and higher fees (for asylum applications, EADs, parolees, TPS applicants, appeals, and various court motions), adds a $5,000 in absentia removal recapture fee, and imposes an excise tax on remittance transfers. It funds ICE removals and detention substantially, expands 287(g) partnerships, and conditions certain state/local grant eligibility on cooperation with federal immigration enforcement. It creates a new reimbursement fund for state and local governments bearing immigration-related costs.

Energy and environment: H.R. 1 repeals or claws back most IRA climate accounts (Greenhouse Gas Reduction Fund, diesel emissions reductions, clean heavy-duty vehicles, school air monitoring, low-carbon materials, GSA sustainable tech, etc.) and terminates or sharply restricts major clean energy credits, including the EV credits (consumer and commercial), refueling property credit, residential clean energy credit, energy efficient home and commercial building incentives, and aspects of the 45X advanced manufacturing credit. It adds prohibited-foreign-entity and “material assistance” tests to multiple remaining credits. It orders aggressive onshore/offshore leasing (including ANWR and NPR-A), narrows offshore royalty rate flexibility, expands coal leasing and reduces coal royalties for a period, accelerates timber sales and long-term contracting, and directs water storage and conveyance expansions. It appropriates for the Strategic Petroleum Reserve’s maintenance and some acquisitions, and generally tilts policy toward “energy dominance.”

Taxes: The bill permanently extends individual TCJA rate cuts and the larger standard deduction, expands and indexes the Child Tax Credit modestly, keeps and inflates various family and education incentives (adoption credit partly refundable, dependent care credit more generous, tax-free student loan assistance by employers), and extends/expands the 199A pass-through deduction and AMT relief. It enacts campaign-style provisions—deductions for tips, overtime, and car loan interest (with income phase-downs)—and creates “Trump Accounts” (child savings accounts with seed funding and employer contributions) with dedicated tax rules. It restores 100% bonus depreciation and full expensing of domestic R&D, loosens business interest limits (again allowing addbacks and capitalization fixes), enhances advanced manufacturing and spaceport bond eligibility, and permanently raises small business and investor-friendly provisions (QSBS expansion, information-reporting thresholds, New Markets and Low-Income Housing credits, Opportunity Zones revival and modernization). SALT is expanded temporarily but still limited. It modifies international tax rules (GILTI into “net CFC tested income,” higher FTC deemed-paid rate, look-through permanent, repeal of 1-month deferral) and raises the BEAT rate. It tightens certain guardrails (excess business loss permanence, stricter EITC/education ID checks) and adds an excise tax on remittances.

Health and welfare: Medicaid undergoes aggressive program integrity changes—mandatory cross-state duplicate checks, Death Master File checks for beneficiaries/providers, a new community engagement (work) requirement for certain adults with exemptions and reporting, revised redetermination frequency, narrowed retroactive eligibility, stricter provider tax and directed payment rules, and tightened eligibility for noncitizens (with expanded emergency Medicaid FMAP rules). It curtails ACA premium credits for certain lawfully present non-eligible aliens and requires Exchange pre-enrollment verification. Medicare gets a one-year fee schedule bump and a strengthened orphan drug negotiation exclusion.

Student loans and higher education: It caps and simplifies repayment into a new “Repayment Assistance Plan” or a standard plan by total debt size, sunsets income-contingent repayment for future loans, delays/rolls back parts of borrower defense and closed-school discharge rules, and expands Pell (including “Workforce Pell” for short high-value programs) with new program quality thresholds. It also protects certain assets (family farms, small businesses) in need analysis.

Defense and homeland: Massive multiyear appropriations surge shipbuilding (subs, destroyers, amphibious), unmanned naval systems, missile defense layers, munitions, hypersonics, AI, advanced manufacturing, nuclear forces modernization, USAF air superiority, Indo-Pacific infrastructure, and Coast Guard modernization, as well as NASA’s Artemis/Moon-to-Mars initiatives. It provides substantial Secret Service and USMS/DOJ/EOIR resources linked to immigration caseloads, and grants for major events (World Cup 2026, LA Olympics 2028), among others.

Agriculture: It reworks commodity programs and crop insurance, conservation, disaster aid, and nutrition (SNAP work requirement adjustments and shelter utility rules). It includes rural health transformation grants, hospital support, and multiple rural development, research, and trade promotion provisions.

In short, H.R. 1 is a maximalist Republican agenda: border hardening; fossil fuel expansion and climate rollback; permanent tax relief and expensing; muscular defense; Medicaid/ACA tightening; and sweeping immigration fee/penalty regimes—paired with selective investments in rural health, Pell/Workforce, NASA, and the Coast Guard. Democrats will object to the climate and safety-net retrenchments and immigration deterrence architecture, while Republicans will hail the security, energy, and pro-growth tax pillars.

Where Each Party Stands

History