An act to provide for reconciliation pursuant to title II of H. Con. Res. 14.

Purpose & Problem

Is the problem real and worth federal action?

The bill uses the budget reconciliation process to cut taxes, change spending for many federal programs, raise the debt limit, and address agencies across the government. It targets deficits, immigration enforcement, defense, and health program costs.

Scope & Related Provisions

Does it stay focused, or carry unrelated add-ons?

Most sections address taxes, spending, defense, immigration, health, energy, and education. One section (60025) funds capital repair and security at the Kennedy Center for the Performing Arts, which is a performing arts venue unrelated to the bill's stated reconciliation goals.

Who Is Affected

Who benefits, and who bears the cost?

Tax changes affect individuals, businesses, and foreign corporations. Spending cuts and new requirements affect Medicaid and SNAP enrollees, states administering those programs, and colleges. Defense, border, and Coast Guard funding affects federal agencies, contractors, and military personnel.

Cost & Funding

Is it affordable and responsibly funded?

The bill appropriates hundreds of billions of dollars across defense, border security, the Coast Guard, and NASA, among others. It also reduces revenues through tax cuts and rescinds previously appropriated funds from the Inflation Reduction Act. The debt limit is raised by $5 trillion. A full CBO cost estimate was not available at the time the committee report was filed.

Risks & Implementation

What could go wrong in practice?

The bill requires many agencies to build new systems, hire staff, and meet strict deadlines. States must implement new Medicaid work requirements, matching funds, and eligibility checks on tight timelines. Several sections note that implementation funding has been set aside, but the scale of simultaneous new requirements across agencies may challenge timely execution.

TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

This title changes rules for the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), including how benefit amounts are calculated, who must meet work requirements, and how costs are shared between the federal government and states. It also rescinds unspent forestry funds from a prior law and updates farm commodity programs, including price support levels, loan rates, sugar policy, and dairy coverage rules. States with high payment error rates in SNAP will be required to pay a share of benefit costs starting in 2028.

TITLE II--COMMITTEE ON ARMED SERVICES

This title gives the Department of Defense over $150 billion in new funding for fiscal year 2025, available through 2029. The money covers military pay and housing improvements, shipbuilding, missile defense, nuclear weapons upgrades, munitions production, air power, cybersecurity, and border support operations. It also funds oversight by the Defense Inspector General and authorizes military construction projects.

TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

This title cuts the Consumer Financial Protection Bureau's funding cap nearly in half, from 12% to 6.5% of Federal Reserve operating expenses. It also eliminates the SEC's reserve fund and transfers its remaining money to the general Treasury by October 2025. Additionally, it cancels unused funds from a previous green housing retrofit program and adds $1 billion for carrying out the Defense Production Act through 2027.

TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

This title gives over $40 billion in new funding to several federal agencies for transportation and space programs. It funds Coast Guard ships and aircraft, FAA air traffic control upgrades, NASA Mars and Moon missions, and spectrum auctions for wireless broadband. It also eliminates civil penalties for automakers that fail to meet fuel economy standards and cuts some previously approved spending on clean aviation fuel and a wireless supply chain fund.

TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

This title expands oil, gas, and coal leasing on federal lands and offshore areas, rolls back royalty rates and Inflation Reduction Act energy provisions, and sets mandatory schedules for lease sales in multiple states and Alaska. It also increases timber sales, sets new fees for wind and solar projects on federal land, funds repairs and petroleum purchases for the Strategic Petroleum Reserve, and appropriates money for water infrastructure and the U.S. 250th anniversary. Several Inflation Reduction Act programs are repealed and their unspent funds are rescinded.

TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS Off-Topic

This title cancels unspent money from dozens of environmental programs created by a 2022 law, including funds for clean vehicles, greenhouse gas reduction, air pollution, and climate grants. It also gives $256.6 million to the Kennedy Center for repairs and security. It adds a new option letting project developers pay a fee to get faster environmental reviews completed within set deadlines.

Section 60025 appropriates $256.6 million for capital repair, restoration, and security improvements at the John F. Kennedy Center for the Performing Arts.

TITLE VII--FINANCE

Title VII makes sweeping changes to the federal tax code, including making permanent or extending lower income tax rates, a higher standard deduction, increased child tax credit, and higher estate tax exemptions from the 2017 tax law. It also adds new temporary deductions for tips, overtime pay, and car loan interest, and raises the cap on state and local tax deductions to $40,000 through 2029. Many of these tax breaks phase out for higher-income earners and require valid Social Security numbers to claim.

TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

This title changes several rules for federal student loans and grants. It caps how much graduate students and parents can borrow, ends income-contingent repayment plans, and creates a new income-based repayment option called the Repayment Assistance Plan with payments based on income. It also expands Pell Grant access to short-term workforce training programs and changes which family assets are counted when determining financial aid eligibility.

TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

This title gives billions of dollars to Customs and Border Protection, Immigration and Customs Enforcement, and related agencies for border walls, detention facilities, surveillance technology, and hiring more border agents. It also sets up a fund to reimburse states and local governments for border security spending going back to January 2021. Additionally, it adds rules to verify who is eligible for federal employee health insurance, funds oversight of pandemic-era spending, and gives the Office of Management and Budget money to find budget efficiencies.

TITLE X--COMMITTEE ON THE JUDICIARY

This part creates new fees that immigrants must pay when applying for asylum, employment authorization, parole, temporary protected status, visas, and other immigration benefits. The fees range from $24 for a travel record up to $1,500 for certain status adjustment applications, and most fees will rise each year with inflation. Fee waivers are not allowed for most of these new charges, and the money collected goes to immigration agencies or the general Treasury fund.