House Advances Trump's 'One Big Beautiful Bill' After Key Medicaid, Tax, And Border Security Changes

The House Rules Committee advanced President Donald Trump’s “One Big Beautiful Bill Act” in an 8-4 vote following a marathon 22-hour hearing, setting up a potential overnight floor vote as Republicans push forward with the $4.9 trillion legislative package despite internal GOP divisions.

What Happened: House Republicans made key concessions to appease conservative and moderate holdouts before advancing the megabill, as reported by ABC News.

The committee approved accelerated Medicaid work requirements starting December 31, 2026, instead of 2029, while raising the state and local tax (SALT) deduction cap to $40,000 for incomes under $500,000, up from the current $10,000 limit established in the 2017 Tax Cuts and Jobs Act.

The revised bill also expedites cuts to Biden-era clean energy tax credits, requiring new projects to break ground within 60 days or be “placed in service” by end-2028.

Additionally, the Department of Homeland Security receives $12 billion through September 2029 for border security reimbursements to states.

Texas Rep. Chip Roy was notably absent from the committee vote, while Democrats employed stalling tactics on the House floor to slow the bill’s progress. The changes came after Trump met Wednesday with House Speaker Mike Johnson and Freedom Caucus members following failed Tuesday negotiations, with White House press secretary Karoline Leavitt calling the meeting “productive.”

Why It Matters: The bill’s passage would significantly impact multiple sectors. Defense contractors including RTX Corp. RTX, Lockheed Martin Corp. LMT, Palantir Technologies Inc. PLTR, and Booz Allen Hamilton Holding Corp. BAH could benefit from increased military spending provisions.

Conversely, Medicaid managed care organizations face enrollment volatility risks, potentially affecting UnitedHealth Group Inc. UNH, Centene Corp. CNC, and Elevance Health Inc. ELV.

Clean energy stocks, including First Solar Inc. FSLR, Enphase Energy Inc. ENPH, and Sunrun Inc. RUN, dropped on Monday as investors weighed reduced tax credit impacts.

The Congressional Budget Office (CBO) projects the legislation would increase the federal deficit by $3.8 trillion while reducing Medicaid subsidies by $698 billion and SNAP spending by $267 billion.

The CBO analysis shows that the lowest income decile would lose approximately 2% of household resources in 2027 and 4% by 2033, while the highest decile gains 4% in 2027.

Senate Republicans have already signaled plans for additional changes, creating uncertainty for the final passage of Trump’s signature legislative priority.

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