This bill would deny federal tax deductions for gender transition procedures and prohibit Medicaid, Medicare, and Children's Health Insurance Program (CHIP) funding for such procedures. It defines gender transition procedures broadly to include hormonal treatments, surgeries, and cosmetic procedures intended to align physical appearance with gender identity, with limited exceptions for medically necessary treatments related to disorders of sex development or life-threatening conditions. The legislation would also require health insurance plans to exclude gender transition procedures from essential health benefits under the Affordable Care Act. This would directly affect individuals seeking gender transition care who rely on federal health programs or tax deductions for medical expenses.
This bill (S 2206) increases the annual limit for tax-free distributions from 529 college savings accounts. It raises the current $10,000 cap on qualified education expenses (like tuition and fees) to $20,000 per year. The change directly affects families using 529 plans to save for college costs, allowing them to withdraw more tax-free each year. The amendment applies to taxable years beginning after December 31, 2025.
S 2174 (NATO Act) would withdraw the United States from NATO by requiring the President to notify the treaty organization of denunciation within 30 days of enactment. It prohibits federal funds from supporting any U.S. contributions to NATO's budgets, including military and civil programs. This bill satisfies a legal requirement for congressional authorization regarding NATO withdrawal, as specified in the National Defense Authorization Act for Fiscal Year 2024. The legislation directly affects U.S. foreign policy and military funding obligations.
This bill amends U.S. tax law to close a loophole allowing companies to artificially shift profits between U.S. and foreign subsidiaries to reduce taxes. It directly affects U.S. corporations with foreign subsidiaries that engage in "round-tripping" - moving profits through transactions involving U.S.-sold property or services without proper documentation of foreign use. The key mechanism creates a "round-tripping ratio" that reduces tax benefits for profits tied to these practices by calculating the percentage of income derived from such transactions relative to total foreign income. Small businesses with average annual gross receipts under $100 million are exempt from this calculation. The changes apply to tax years beginning after the bill's enactment.
This bill, S 317 (Charitable Act), creates a new federal income tax deduction for charitable contributions for individuals who do not itemize deductions (the majority of taxpayers). It allows these taxpayers to deduct up to one-third of their standard deduction amount for charitable gifts in 2026 and 2027. The bill also eliminates penalties related to charitable deduction errors under tax code sections 6662 and 6664. The changes apply to tax returns filed for 2026 and 2027 tax years.
S 3299, the "DSH in Tennessee Act," permanently restores federal funding for hospitals in Tennessee that serve many low-income patients, directly affecting those hospitals. For fiscal year 2026, it sets Tennessee's funding level equal to its 2015 amount, adjusted annually for inflation using the consumer price index. Starting in 2027, Tennessee will be treated as a "low DSH state," receiving annual funding increases based on the same inflation adjustment used for similar states. This bill specifically changes how Tennessee's Medicaid Disproportionate Share Hospital (DSH) funding is calculated and allocated.
This bill extends and expands the Work Opportunity Tax Credit (WOTC), which helps employers hire from targeted groups like veterans, long-term welfare recipients, and individuals in high-unemployment areas. It extends the program through 2030 (from 2025), increases the credit rate to 50% for certain new hires (up from 40%), adds automatic annual inflation adjustments to key dollar amounts, and expands eligibility to include military spouses and people receiving SNAP benefits without an age limit. Employers hiring from these groups will see higher tax credits for qualifying wages, with new rules specifically for agricultural workers, summer youth employees, and veterans. The changes apply to workers hired after December 2025.
S 2749 exempts Medicare programs from automatic budget cuts (sequestration) caused by the budgetary effects of the "One Big Beautiful Bill Act" (a separate bill). This means Medicare funding under the Social Security Act would not face reductions triggered by that specific legislation's spending impacts. The bill directly affects Medicare beneficiaries and programs by ensuring their funding remains protected from these automatic cuts. It achieves this through a specific exemption clause in the Statutory PAYGO Act's sequestration rules.
The SAFEGUARDS Act of 2025 ensures that revenue from the 9/11 Security Fee (paid by airline passengers) is used exclusively for aviation security, ending its diversion to other government purposes by 2027. It creates two dedicated funds: the Aviation Security Capital Fund (receiving $250 million annually through 2025, then $500 million annually starting in 2026) for general security improvements, and the Aviation Security Checkpoint Technology Fund (receiving $250 million annually starting in 2026) specifically for security screening technology like baggage scanners and exit lanes. The bill requires the Transportation Security Administration (TSA) to collect sufficient fees to fund these amounts and allows retroactive grants for security technology projects implemented since 2023. This directly affects TSA operations, airports, and passenger fees, with no new taxes or fees imposed.
The Rural Historic Tax Credit Improvement Act increases tax credits for rehabilitating historic buildings in rural areas. It provides a 40% credit for affordable housing projects (where at least half the building meets affordability standards) and a 30% credit for other rural historic projects, with a $5 million cap on eligible costs. Taxpayers can transfer these credits to other taxpayers, requiring certification and reporting to the IRS. The bill also adds recapture rules for projects failing to meet affordable housing requirements and removes a basis adjustment for these credits, effective for projects placed in service after 2025.
