Five weeks after the House passed H.R. 1, the Senate unveiled its own “Big Beautiful Bill” on June 28. Here are the biggest edits you’ll notice as the measure heads into House–Senate negotiations once the Senate passes it — which is expected to be done by July 2, according to prediction markets.
A Taller Debt‑Ceiling Ladder
House version: raises the borrowing limit by $4 trillion.
Senate version: ups that to closer $5 trillion to avoid a projected midsummer crunch.
SALT Deduction: Bigger but Not Forever
Both chambers lift the State‑and‑Local‑Tax (SALT) cap to $40k.
Difference: the House makes the hike permanent; the Senate lets it expire after 2029.
Child‑Tax Credit Dialed Back
House: boosts the credit to $2,500 per child through 2028, then reverts to $2,000.
Senate: trims the bump to $2,200 but makes it permanent.
Medicaid Provider Taxes & Rural Lifeline
House: freezes state provider‑tax rates.
Senate: phases them down to 3.5 percent by 2032 and creates a $25 billion Rural Hospital Stabilization Fund.
SNAP Cost‑Sharing Tweaks
Both plans shift some food‑stamp costs to states, but the Senate adds a sliding scale tied to payment‑error rates and gives Alaska and Hawaii two‑year waivers if they show “good‑faith” compliance.
Asylum Fee Slashed
The application fee for asylum seekers drops from $1,000 in the House bill to $100 in the Senate bill after the parliamentarian ruled the higher levy violated reconciliation rules.
A Softer AI Moratorium
House: imposes a blanket 10‑year ban on new state AI regulations.
Senate: keeps the 10‑year window but ties it to $500 million in federal aid for states that refrain from new rules—an incentive rather than a handcuff.
Tips & Overtime Deduction, Now Means‑Tested
Both versions let workers deduct tip and overtime income, but the Senate bars filers earning over $150k from using the break—something the House left open‑ended.
Standard Deduction Diverges
House: extends the doubled standard deduction only through 2028.
Senate: locks the higher deduction in permanently.
What Happens Next?
Expect a July “vote‑a‑rama” in the Senate, followed by a high‑stakes conference committee where negotiators must bridge these gaps—or risk blowing the White House’s Independence Day deadline.
