Summary

Makes major changes across taxes, health care, education, immigration, energy permitting, agriculture/forestry, financial regulation, and defense and border security funding. It extends and modifies farm/forestry programs and payments; provides large multi‑year funding for the Department of Defense and the Coast Guard; funds border barriers and CBP; and adds new immigration and immigration‑court fees. It also reshapes federal student aid by creating a new “Workforce Pell Grant” for short job‑training programs while limiting Pell Grants for certain less‑than‑half‑time students. In health care, it tightens Affordable Care Act Exchange enrollment and tax-credit verification and bars treating gender transition procedures as an essential health benefit for Exchange plans starting in 2027. It makes extensive tax-code changes (including extending and revising individual and business provisions and restricting/ending some clean energy credits), adds new PBM transparency rules in Medicare drug coverage, and changes federal workforce retirement/benefits oversight rules.

Key Points

• Provides large, multi‑year FY2025 funding for national security priorities, including DoD and Coast Guard procurement and readiness, plus border security investments.
• Creates a new Workforce Pell Grant for short workforce training programs starting with the award year beginning July 1, 2026, while restricting Pell for certain less‑than‑half‑time students starting July 1, 2025.
• Tightens Affordable Care Act Exchange enrollment and premium tax credit verification starting in 2026 and blocks certain tax-credit determinations for people who did not reconcile prior-year credits.
• Prohibits treating gender transition procedures as an essential health benefit for Exchange plans starting in 2027.
• Imposes new transparency, reporting, and potential disgorgement-related requirements on PBMs in Medicare Part D and MA–PD, with funding for CMS and HHS OIG to implement.
• Establishes new and increased immigration and immigration-court fees starting in FY2025, with inflation indexing beginning in FY2026 and limited waiver authority.
• Creates a DOE De‑Risking Compensation Program that can pay energy project sponsors when later federal actions make projects unviable, funded by appropriations plus sponsor fees/premiums.
• Changes federal employee retirement/pay calculations and strengthens FEHB enrollment verification and audit requirements, including possible disenrollments on set timelines.
• Makes extensive tax changes affecting individuals and businesses, including Opportunity Zone redesignations, changes to R&E and interest deductions, and new/changed credits and deductions.
• Ends or restricts several clean energy and vehicle tax credits after 2025 and adds limits tied to prohibited foreign entities, while also adding remittance tax credit and ERTC fraud restrictions.

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