What is in the U.S. House reconciliation package — and how will it impact Nevada?

A massive GOP bill working its way through Congress seeks to implement the Trump administration’s agenda — from extending his 2017 tax cuts to increasing funds for his deportation goals.

The House reconciliation package, which President Donald Trump has dubbed as his “big, beautiful bill,” aims to reduce the $1.05 trillion federal deficit by $880 billion over the next 10 years to help offset the cost of extending his tax cuts.

Individuals of nearly all income levels saw tax cuts in 2017, though most of the benefits were among the wealthiest and corporations, according to the Washington Post. The tax cuts for individuals are set to expire at the end of the year, and the reconciliation package calls for extending it, among many other proposals, including increasing the debt ceiling.

The bill received a setback Friday when the bill failed to make it through the budget committee. A handful of conservatives joined all Democrats in voting against it. Some conservative lawmakers insisted on steeper cuts to Medicaid and the Biden-era green energy tax breaks. Negotiations continued into the weekend.

Once passed by the committee, it will go to the full House for a vote, then will go to the Senate. Congressional Republicans hope to have a final version ready for Trump to sign by July 4.

Though the bill could change drastically as it makes its way through the legislative gears, here are a few of the proposals currently on the table — and how they could impact Nevada.

Medicaid cuts and changes

The majority of the $880 billion in projected federal savings comes from Medicaid cuts, which would account for about $625 billion in savings over 10 years. It would result in approximately 8.7 million people losing Medicaid coverage, and 7.6 million people going uninsured over the next 10 years, according to estimates from the nonpartisan Congressional Budget Office.

Medicaid changes are estimated to remove 312,000 Nevadans from the program. If the state were to pick up the tab, it would cost $6.7 billion, according to the Kaiser Family Foundation.

No taxes on tips, overtime

Trump campaigned to eliminate taxes on tipped income, a promise he first made during a rally in Las Vegas. That proposal is included in the reconciliation bill, although it would only last four years.

The legislation would allow for a tax deduction of tips received during a taxable year. It includes some of the provisions pitched by Rep. Steven Horsford, D-Nev., to prevent hedge funds from calling a gift a tip to avoid paying taxes, and to prevent “highly compensated” employees from claiming their earnings as tips.

Food servers, bartenders, hair stylists, nail stylists and workers in body and spa treatments are specifically included in the provision.

States to pay for SNAP

States would be required to shoulder a larger share of the costs beginning in Fiscal Year 2028 for the Supplemental Nutrition Assistance Program. House Republicans behind the provision say it will give states incentives to administer SNAP more efficiently.

In fiscal year 2024, SNAP helped 505,500 residents in Nevada; families with children account for 62 percent of SNAP participants, according to the Center on Budget and Policy Priorities.

Nevada legislators are already making some tough decisions when it comes to moving forward legislation with a financial impact to the state. Finding money in the budget to cover SNAP would add to that burden.

Child tax credit increases for some

The bill proposes increasing the Child Tax Credit, making permanent the previous doubling of the credit to $2,000 and adding a temporary $500 boost from 2025 to 2028, but it would limit families who are eligible. The proposal requires the taxpayer, their spouse and the child to have a Social Security number. Currently, only the child is required to have a Social Security number in order for the household to claim the Child Tax Credit. In Nevada, 594,000 children qualified for advance Child Tax Credit payments in 2021, according to data from the Treasury Department.

Proponents say it will ensure only U.S. citizens receive the benefit, though Democratic congressional members say it will hurt children who are citizens but whose parents are not. About 4.4 million U.S.-born children live with an unauthorized immigrant parent, and Nevada has the highest share of households that include an unauthorized immigrant, according to the Pew Research Center.

Newborn savings account

The bill proposes a newborn savings account called a money account for growth and advancement, or “MAGA account,” in which the U.S. Treasury would contribute one-time funds of $1,000. The proposal is estimated to cost about $12 billion, according to the Bipartisan Policy Center.

Nevada also has a similar proposal on the table in the Legislature. Assembly Bill 67 would establish the Nevada Baby Bonds Program and provide Nevada children an initial $3,200 investment that would grow to about $13,000 by age 18.

A nationwide school choice program

Though Republicans in Nevada have long sought — without much luck — expanded school choice, it might come to them through the federal reconciliation bill.

Republicans on the House Ways and Means Committee voted to include in the reconciliation package a school voucher program that would allow the government to provide $20 billion over four years for non-public schools through tax credits. Individuals would be able to donate to organizations that provide scholarships for private schools and for homeschooling materials.

Ending climate and environmental programs

House Republicans are proposing cuts to Biden-era climate and environmental programs, including clean energy tax credits, which help families afford investments in clean energy, such as solar power or energy efficient home improvements like heat pumps and air conditioners.

Nevada families claimed more than $137 million in clean energy tax credits on 2023 tax returns, according to the U.S. Treasury.

It would reclaim any unspent funds made available through Inflation Reduction Act programs and repeal sections of the Clean Air Act that provide funds for states, local governments and tribes to use for climate change action plans and environmental justice initiatives.

Nevada public land up for sale

Rep. Mark Amodei, R-Nev., included an amendment to the bill that would sell off more than 93,000 acres of land in Nevada, including over 65,000 acres of public land in Clark County. The land would be prioritized for affordable housing and economic development.

The move was met with criticism from environmental groups and Nevada’s congressional Democrats concerned that the proceeds of future land sales will no longer go to the state.

Contact Jessica Hill at jehill@reviewjournal.com. Follow @jess_hillyeah on X.