House Advances Reconciliation Bill as Trump Tariffs in Limbo

The U.S. House of Representatives has passed the One Big Beautiful Bill Act (H.R. 1), a reconciliation bill that extends and expands major provisions of the 2017 Tax Cuts and Jobs Act, increases the child tax credit temporarily, removes taxes on tips for workers in certain industries, and introduces new administrative requirements for Medicaid eligibility. The legislation also includes spending cuts, rescinds some unspent energy funds, revises Opportunity Zones, and imposes new fees on electric and hybrid vehicles. Over ten years, the bill is projected to increase primary deficits by nearly $2.8 trillion. The bill now moves to the Senate, where significant changes are expected before final passage.

Separately, in a setback for President Trump, federal judges ruled that his recent tariffs exceeded presidential authority in imposing sweeping tariffs on imports from most countries and that only Congress held such authority. However, the tariffs will remain in effect while the administration appeals the decision. Trump has since announced additional tariffs on steel imports.