Tax insight

Overview of Senate-passed version of H.R. 1, the “One Big Beautiful Bill Act”

Insight
11 minute read
July 01, 2025

Note: President Trump signed H.R. 1 into law on July 4, which marks the date of enactment for the tax provisions discussed below. The House on July 3 approved without change H.R. 1 as passed on July 1 by the Senate.

What happened?

The Senate on July 1 voted 51 to 50 to pass an amended version of H.R. 1, the “One Big Beautiful Bill Act.” The bill was approved with the tie-breaking vote of Vice President JD Vance and the support of all Senate Republicans, except for Senators Susan Collins (R-ME), Rand Paul (R-KY), and Thom Tillis (R-NC) who opposed the bill along with all Senate Democrats. The Senate approved H.R. 1 under reconciliation procedures that allowed the legislation to be approved by a simple majority with only Republican votes, instead of the 60-vote majority typically needed to consider bills in the Senate.  

President Donald J. Trump has called for the House to approve the Senate-passed version of H.R. 1 without any changes, which could clear the legislation for him to sign it into law by the July 4 Independence Day federal holiday. House Speaker Mike Johnson (R-LA) has announced that the House will reconvene during the current July 4 recess period to consider the Senate’s amendments. Any House changes to the Senate-passed bill would require continued efforts to enact a 2025 reconciliation bill by some point later in July.

The Senate-passed bill includes significant tax law changes, increased funding for immigration control and national defense, and spending reductions affecting Medicaid and a large number of other federal programs. The bill also includes a provision to increase the federal government’s current $36.1 trillion statutory debt limit by $5 trillion.

Below is an overview of tax provisions in the Senate-passed version of H.R. 1, which includes some changes to the tax proposals originally released on June 16 by Senate Finance Committee Chairman Mike Crapo (R-ID).