Updated August 1, 2025: This brief was revised to remove the sentence about the tax deduction for car loans. The provision was amended and does not reduce adjusted gross income.
Updated July 22, 2025: This brief was amended to update CBO’s estimate of Inflation Reduction Act rescissions.
The president signed a fiscal year (FY) 2025 reconciliation package, the One Big Beautiful Bill Act (OBBBA; P.L. 119-21), which started as a vehicle to extend many expiring tax policies in the Tax Cuts and Jobs Act of 2017 (TCJA). Over time, its scope expanded to include additional tax and spending changes, plus an increase in the debt ceiling.
The biggest offsets to policies that increase the deficit are changes to:
- Tax policies
- Medicaid (in portion labeled Finance-Health)
- The Supplemental Nutrition Assistance Program (SNAP; in portion labeled Agriculture)
- Student loan programs (in portion labeled HELP, to designate the Senate Committee on Health, Education, Labor, and Pensions)
Medicaid and SNAP provisions are summarized in separate briefs. This brief focuses on provisions outside of those two areas. Figures are based on the Congressional Budget Office (CBO) score of the bill that passed out of the Senate Finance Committee; changes were made subsequent to final adoption, but an updated CBO score is not yet available.