What’s in Trump’s Tax Bill? Medicaid Reform, Food Stamp Cuts and More

House Republicans approved a domestic policy bill to enact President Trump’s agenda, prevailing by a single vote after a bitter fight over tax and spending priorities that had divided their conference.

The legislation would slash taxes, providing the biggest savings to the wealthy, and steer more money to the military and immigration enforcement, while cutting health, nutrition, education and clean energy programs to cover part of the cost. To win votes for passage, Republican leaders accelerated the implementation of work requirements in the Medicaid program and the repeal of clean energy tax credits under the Inflation Reduction Act, among other changes.

Republicans in the Senate have said they want to make major modifications to the House product, but it’s still unclear what those would look like.

Here is a look at the bill, and the biggest remaining areas of disagreement within the party.

Cutting taxes

The bottom line: The heart of the bill is a roughly $4 trillion tax cut that would lock in many of the tax cuts Republicans passed in 2017, including lower marginal income rates, a larger standard deduction and a higher threshold for the estate tax, with some tweaks.

The measure also includes several new, temporary tax cuts that Mr. Trump campaigned on, including his promises not to tax tips or overtime. His pitch not to tax Social Security benefits takes the form of a bonus $4,000 deduction available to Americans 65 and older, with the benefit shrinking at higher income levels. Americans would also be able to deduct interest on car loans from their taxable income, though the car has to be made in the United States.

The reductions would last only through 2028, as would a $1,000 addition to the standard deduction and a $500 bonus to the child tax credit, which now maxes out at $2,000. Children born between Jan., 1, 2025, and Jan. 1, 2029 would receive $1,000 deposited in a so-called “Trump account” that is invested in the stock market.