What's in Trump's big tax bill? Here's what you need to know.

WASHINGTON – There's good news for the nation's wealthiest, car buyers, parents, waiters and waitresses in legislation that passed the U.S. House early in the morning on May 22. 

There's bad news for people making less than $50,000, recipients of Medicaid and food stamps and anyone still saddled with student loan debt.

But no one should take it to the bank quite yet: The bill passed to enact President Donald Trump's agenda still has a long road to becoming law. It will now go to the Senate, where it may be changed and then voted on yet again before heading to the president's desk for his signature.

Here's what you need to know about what's in the package Trump calls his one "big, beautiful bill."

Medicaid, SNAP cuts

House Republicans have approved big changes that would save at least $625 billion from Medicaid, the program that provides health insurance to more than 71 million low-income Americans.

Those changes are expected to cause 7.6 million Americans to lose their health insurance over the next 10 years, according to initial estimates by the nonpartisan Congressional Budget Office.

The legislation would implement work requirements for adults enrolled in Medicaid expansion and increase the frequency of eligibility checks to ensure people still qualify for the program.

It would also bar Medicaid from funding services at clinics that also perform abortions, such as Planned Parenthood, and discourages states from using their own funds to provide Medicaid coverage to undocumented children.

The bill would also implement new work requirements for people ages 55 to 64 in the Supplemental Nutrition Assistance Program, known as SNAP or food stamps, which provides food assistance to around 42 million Americans.

That would save up to $300 billion over the next ten years and shift more of the cost of the program to states for the first time. It would also limit SNAP eligibility to citizens and lawful permanent residents and prevent future presidential administrations from increasing benefits without Congressional approval.

Big tax breaks

The tax cuts implemented through the 2017 Tax Cuts and Jobs Act signed into law by Trump during his first term expire at the end of the year. If they are not extended, income tax rates will go up for all but two income brackets next year.

This bill would make those cuts permanent. While the policy keeps tax rates lower for all income groups, they disproportionately benefit wealthier Americans.

Families could benefit from an increased child tax credit of $2,500 through 2028, which would drop to $2,000 after that. If the bill doesn't pass, the child tax credit would drop back to $1,000 at the end of this year.

People over age 65 could also deduct an additional $4,000 from their taxes if they make less than $75,000 or $150,000 filing jointly.

No tax on tips, overtime

Tipped employees like waiters and hairstylists would be able to claim a new tax deduction for tips through 2028, as could workers who are paid overtime wages. The bill would also allow people to temporarily deduct up to $10,000 in car loan interest payments if they buy an American-made vehicle.

SALT benefits

Republicans from primarily Democratic states like California, New York and New Jersey pushed for an increased cap on state and local tax deductions, also known as SALT, which allows people to write off a portion of their local taxes from what they owe the federal government.

The 2017 tax law capped that deduction at $10,000. The new bill would raise that cap to $40,000 for people who make less than $500,000 per year.

Green energy roll-backs

The bill would cut off many green energy tax credits for projects beginning 60 days after the bill passes – a major priority and last-minute change for fiscal conservatives who were hoping to shave more off the cost of the bill.

The bill would rescind several other climate change-related provisions of former President Joe Biden's Inflation Reduction Act, including a $7,500 tax credit for electric vehicles.

It would pull back unspent money for several grant and loan programs at the Energy Department and U.S. Environmental Protection Agency, delay methane fees for oil and gas companies, repeal additional rules encouraging the adoption of electric vehicles, and accelerate permitting for fossil fuel projects.

'Trump' savings accounts

Children under 8 years old would be given $1,000 each for their parents to open savings accounts that Republican lawmakers dubbed "Trump" accounts.

Parents, other relatives and non-profits could contribute $5,000 annually to the account tax free until the child is 18, when a portion of the funds can be used for higher education, training programs, buying a home or starting a small business until age 30, when the funds would become unrestricted.

Taxing universities, boosting private schools

The bill would increase taxes on private university endowments. The rate would jump significantly for schools with higher rates for larger endowments, like those held by elite schools such as Harvard University.

The bill would also allow the federal government to spend $5 billion per year for the next four years on vouchers that could be used to subsidize education outside of public schools.

Families who earn less than three times their local median income and who receive the federal scholarships created by the program could choose to spend the estimated $5,000 they receive on tuition or other schooling needs at private schools, parochial schools or homeschooling. 

Student loan changes

Student loan relief regulations enacted by Biden's administration would be repealed, and the number of repayment plans for federally held loans would shrink to just two programs.

The bill would also impose significant caps on loans for parents and undergraduate students, while eliminating a lending program for future graduate students.

George Petras and Jennifer Borresen contributed.