On June 28, 2025, U.S. Senate Republicans progressed with President Donald Trump's tax-cut and spending bill, the One Big Beautiful Bill Act (OBBBA). The legislation seeks to extend the 2017 tax cuts, introduce further tax reductions, and increase funding for military and border security.
The bill includes a provision to raise the state and local tax (SALT) deduction cap from $10,000 to $40,000, with an annual 1% inflation adjustment through 2029. It also proposes a temporary tax exemption on interest paid for U.S.-made new car loans, capped for high-income individuals.
The Congressional Budget Office (CBO) estimates the Senate version of OBBBA would add approximately $2.4 trillion to the national debt over the next decade. Democrats oppose the bill, arguing its tax cuts favor the wealthy at the expense of social programs.