Massive GOP Tax and Border Bill Passes House, But U.S. Virgin Islands Faces Losses in Health, Energy, and Social Aid

The U.S. House of Representatives approved H.R. 1—branded by Republicans as the “One Big, Beautiful Bill”—just before dawn on Thursday, capping weeks of intraparty bargaining with a cliff-hanger 215-214 roll-call vote that also recorded one member as “present."

The 1,100-plus-page reconciliation package stitches together permanent extensions of the 2017 Tax Cuts and Jobs Act, new temporary breaks on tips and overtime, aggressive border-security funding and the deepest Medicaid and SNAP trims ever proposed in a single measure. House Speaker Mike Johnson (R-La.) hailed the bill as the centerpiece of President Donald Trump’s second-term agenda; every Democrat voted no, joined by two fiscal-hard-liner Republicans whose demands for steeper cuts went unmet.

Sweeping Tax Changes

Individual and estate taxes: The top individual rate stays at 37 percent, and the doubled estate-tax exemption—pegged to reach roughly $15 million in 2026—is made permanent.

Relief for workers: Tipped income and the premium portion of overtime pay go untaxed through 2028, while auto-loan interest (up to $10,000) on U.S.-assembled cars is deductible until 2029.

SALT and family benefits: The state-and-local-tax cap rises to $40,000 for households earning under $500,000, and the child tax credit increases to $2,500 through 2028. A $4,000 extra standard deduction is added for seniors.

Small-business and savings incentives: The Section 199A deduction for pass-throughs climbs to 23 percent and becomes permanent, and new “Trump Accounts” seed every child born 2024-28 with $1,000 toward education or a first home.

Border security: $46.5 billion revives wall construction; another $6.1 billion hires and retains 8,000 additional customs and Border Patrol personnel; ICE staffing grows by 10,000 with a stated goal of 1 million deportations a year.

Defense: $150 billion goes to missile-defense (“Golden Dome”), ammunition restocking and naval fleet expansion.

Energy and infrastructure: Biden-era methane and EV credits are repealed; oil-and-gas leasing on federal land expands; $12.5 billion is earmarked to modernize FAA traffic control facilities.

Mandatory-program reforms: Work requirements (80 hours a month) begin in 2026 for able-bodied adults on Medicaid and are extended to age 64 for SNAP recipients without dependents. Program co-pays and eligibility checks tighten. The Congressional Budget Office (CBO) projects that 7.6 million people could lose Medicaid coverage, and SNAP outlays fall $267 billion over ten years. House Budget Committee