What does Donald Trump's tax bill, approved by the United States Senate, say?

The United States Senate approved President Donald Trump 's tax bill on Tuesday, after marathon sessions, but with a series of modifications compared to the one approved by the House of Representatives, where it now returns for reconciliation. What does the bill say?

Trump 's " Great and Beautiful " bill seeks to extend the massive tax credits adopted during Trump's first term (2017-2021), eliminate the tip tax, and include billions of additional dollars for defense and immigration control.

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There are two key themes in the bill: border security/immigration and tax relief for the wealthy.

On border security, the versions approved by the House and Senate are similar: they allocate tens of billions of dollars to the area, including the expansion and modernization of the border barrier system.

It also allocates funds to acquire, build, or improve Customs and Border Protection facilities and invest in technology for border surveillance and illicit drug detection.

Allocates funding for the hiring and training of thousands of Border Patrol agents and other personnel, as the administration ramps up its mass deportation plan, detaining thousands of people it seeks to deport.

Regarding the remittances that migrants in the United States send to their countries of origin, both the House and Senate proposals propose taxing them, but the amounts differ. The Representatives' bill proposed a 3.5% tax, after lowering it from the original 5%.

The senators' bill includes a 1% tax. In addition, the House bill creates or increases fees for immigrants applying for asylum, work authorization, humanitarian parole, and temporary protected status, as well as for most immigration court filings.

At the same time, it expands funding for immigration detention, the hiring and training of Immigration and Customs Enforcement agents, and the hiring of judges and support staff. It would provide funding to increase deportations. The Senate version is similar, only the amounts vary.

One of the most controversial issues in the bill is changes to the health care system and Medicaid , the program that helps Americans cover their medical costs.

The House- approved bill would introduce changes to the enrollment process under the Affordable Care Act (passed during the Barack Obama administration), limiting enrollment periods and increasing verification requirements. It would also end automatic re-enrollment for many people.

Some migrants, including refugees, asylees, and others with temporary protection, would no longer qualify for federal premium subsidies.

The initiative prohibits coverage of gender-affirming health care as an essential health benefit, which could also affect adults covered by Medicaid expansion.

It would restore federal funding for subsidies that reduce out-of-pocket costs for lower-income members. Analysts say this could mean higher premiums.

The Senate version does not restrict the enrollment period, prohibit coverage of gender-affirming care, or restore federal funding for cost-sharing subsidies.

Instead, it increases verification requirements (albeit with some differences from the House version), would end automatic re-enrollment, and limits certain immigrants' eligibility for premium subsidies.

The House version would require some Medicaid recipients, ages 19 to 64, to work, volunteer, enroll in, or participate in vocational training for at least 80 hours a month.

It would prevent states from increasing current taxes on providers or imposing new ones.

It would limit new directed payments that states channel to hospitals and other providers to one rate for states that have expanded Medicaid and a higher rate for states that have not. It would reduce federal matching funds for states that have expanded Medicaid and that cover undocumented immigrants with their own money, prohibit gender-affirming health care in Medicaid and the Children's Health Insurance Program, and prevent Planned Parenthood from receiving Medicaid funds.

The Senate proposal would require certain beneficiaries ages 19 to 64—as well as parents of children 14 and older—to work, volunteer, enroll in school, or participate in job training for at least 80 hours per month.

It would reduce the tax cap on providers in expansion states and limit both existing and new direct payments. It would include a $ 25 billion relief fund for rural hospitals.

It would restrict Medicaid eligibility for certain immigrants, including refugees, and penalize expansion states that offer health coverage to undocumented immigrants using their own funds. It would prohibit Planned Parenthood from receiving Medicaid funding for one year and ban gender-affirming care in Medicaid and the Children's Health Insurance Program.

Regarding tax relief, the House bill would allow companies to fully amortize the cost of equipment and research and development in the first year they are incurred. These provisions would expire after 2029.

The bill would temporarily allow businesses to immediately deduct the cost of constructing or making improvements to certain types of buildings, including manufacturing plants.

The Senate version makes depreciation permanent for equipment and research and development. However, the immediate deduction for building construction would remain temporary.

The House bill would allow eligible taxpayers to deduct up to $10,000 a year in auto loan interest from 2025 to 2028.

The tax exemption would begin to phase out for single taxpayers earning more than $100,000 and married couples earning $200,000.

It would apply to taxpayers who take out auto loans starting in 2025 and who purchase passenger vehicles that were finally assembled in the United States, in line with President Donald Trump's push to promote "Made in America."

In the Senate version, used, off-road, and recreational vehicles would not qualify for the deduction.

Students are also affected by Trump's tax plan. Under the House proposal, the total amount of annual federal aid would be limited to the average cost of college, the subsidized loan and graduate PLUS loan programs would be ended, the total loan ceiling for dependent undergraduate students would be increased, total student loans for graduate and professional programs would be capped, and the Parent PLUS program would be restricted.

The Senate version limits total student loans for graduate and professional programs, Parent Plus loans, and eliminates the Graduate PLUS loan program.

It would not modify the subsidized loan program, would not cap annual federal aid, would not increase the total maximum loan limit for undergraduate students, or tighten the Pell Grant enrollment requirement.

The student loan repayment provisions are generally the same as those in the House bill, but would not apply to current borrowers.

Both proposals eliminate the tip tax, but while the House proposal would allow many hourly employees who receive overtime compensation to deduct that extra pay, the Senate proposal limits what can be deducted.

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The Senate -revised bill now returns to the House of Representatives for discussion. However, its passage may not be easy, given the changes made to the initiative the representatives endorsed. President Trump wants to have the tax plan signed by July 4th, the U.S. Independence Day holiday.