Here is what you need to know about the amendments made to the bill that just passed the House and it is on to the Senate for further consideration.
Among the changes that House Republicans made:
Feds Finally Get Some Good News
Republicans removed a section of the bill that would change the calculations for federal workers’ retirement pensions. Annuities will continue to be based on the average of the highest three years of income. The GOP had been looking to save money by changing the calculation so that it would be based on a worker’s highest five years of income. The leadership also delayed the effective dates to generally end the FERS “special retirement supplement” making those changes effective for those newly retiring in the calendar year 2028 and later. The original would have ended the Supplement, as of the date of enactment. The most significant change for most federal employees was eliminating a provision that would have required all FERS employees to pay 4.4 percent of salary toward their annuity, phased in over two years starting in January as opposed to the 0.8% they pay now.
Not for Sale
They removed the sections that authorized the sale of hundreds of thousands of acres of public lands in Nevada and Utah. Some Republican lawmakers from Western states had objected to the sales.
I Want My Name on an Account
The President is probably not getting added to Mount Rushmore so this is the next best thing. The new investment accounts that parents or guardians could open with a $1,000 contribution from the federal government for babies born between Jan. 1, 2024 and Dec. 31, 2028 will be named “Trump” accounts instead of “MAGA” accounts.
No Soup For You
They accelerated the implementation of a new work requirement for certain able-bodied Medicaid beneficiaries to Dec. 31, 2026. The work requirement had been set to begin in Jan. 1, 2029.
Pass the SALT
The revised bill quadruples the cap on the state and local tax deduction (SALT) to $40,000 for households with incomes up to $500,000, with the deduction gradually phasing down for taxpayers above that income threshold. Also, the cap and income threshold will increase 1% annually over 10 years, which is generally below the rate of inflation. Increasing what is known as the SALT cap was a big issue that divided the Republican conference. The current cap is $10,000. GOP leaders agreed to a higher amount to win over support from Republicans in New York, New Jersey and California.
Kill Me Quietly
A new provision in the bill deregulates gun silencers by removing them from the national registry regulated under the National Firearms Act. The registry contains information on machine guns, certain short-barreled rifles and shotguns and silencers. The bill already looked to remove a $200 excise tax on silencers.
Escape from Alcatraz
The bill creates a $12 billion fund for the Homeland Security secretary to provide grants to reimburse states for costs of detention and removal of migrants and other border security efforts.
It’s Not Easy Being Green
The legislation accelerates the Inflation Reduction Act tax credit phaseout for wind, solar and battery storage to 2028.
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