Lesser-Known Provisions of the House-Passed ‘Big Beautiful Bill'

Epoch Times

27-05-2025

Following its passage by the House in the early morning hours of May 22, the One Big Beautiful Bill Act—the vehicle to fund and implement President Donald Trump's agenda—is now in the process of being evaluated by the Senate.
Its
Aside from these well-known components of the legislation, several lesser-known—but impactful—provisions were also slipped into the bill, which leaves few areas of government and the federal budget untouched.
Here's what to know about those.
Artificial Intelligence
The bill would begin to integrate artificial intelligence into various sectors of the federal government, while restricting states' ability to regulate the novel technology for a 10-year period.
The text of the bill reads, 'no State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act.'
Despite several hearings on the topic over the past several years, Congress has until now made little legislative progress on the growing issue.
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This provision could be unpopular with tech industry chiefs—who have in the past warned of the need for regulation, expressing fears that the technology could escape human control—as well as senators who have investigated the issue.
Additionally, the bill delegates hundreds of millions of dollars to use AI in government functions like examining Medicare payments, naval shipbuilding, and audits of the Department of Defense.
Courts Barred From Enforcing Contempt
Amid the administration's ongoing disputes with the judiciary—particularly over issues related to Trump's mass deportation operation—the bill would limit federal courts' ability to hold members of the administration in contempt.
Specifically, the bill would require plaintiffs to provide a bond before a judge could enforce contempt orders. Under current federal court procedures, this fee can be waived depending on the nature of the case.
This requirement would be imposed retroactively upon enactment of the bill, and could limit the judiciary's options to respond to administration's failures to comply with a court order.
HSAs Boosted
The legislation would enhance Health Savings Accounts (HSAs), federal accounts that allow taxpayers to save tax-free money for eligible medical services, by making gym memberships eligible for the program.
It would allow beneficiaries to withdraw $500 a year to pay for such expenses, or $1,000 for married couples, albeit with a laundry list of rules about what types of physical activity qualify.
For example, eligible facilities cannot be 'a private club owned and operated by its members,' and cannot offer 'golf, hunting, sailing, or riding facilities.' Other materials, such as videos and books related to personal fitness, are not eligible for HSA account funds under the bill.
Certain taxpayers will also be eligible for an increased contribution limit of $4,300 for single taxpayers and $8,550 for married couples, depending on income.
Estate Taxes
The bill would also extend the 2017 estate tax cuts, allowing single-owned estates to pass on up to $15 million tax-free, and allowing couple-owned estates to pass on up to $30 million tax-free.
It's a change that could result in less than 0.1 percent of estates being subject to federal estate tax, by some estimates.
The think tank wrote that with the extension of this exemption, 'one can expect the share of estates subject to the tax to remain close to … 2019 [levels], when only 0.08 percent of estates were taxed.
Free Tax Filing Tool Repealed
The legislation repeals a program that allows taxpayers to file directly, dubbed 'Direct File,' instituted by President Joe Biden's administration.
As part of a push to end the dominance of services like TurboTax and H&R Block—which tend to charge most taxpayers money for specialized services—the Biden administration created 'Direct File.' It sought to save taxpayers money by allowing them to access the same services usually offered for a fee by tax prep companies, and is currently available in 25 states.
The bill would repeal this program entirely, requiring that it be terminated within 30 days of the bill's passage.
It leaves open the possibility of a new, similar service pending a report by the Treasury secretary on the feasibility of such a program and taxpayer sentiments. The legislation suggests that up to 70 percent of taxpayers would be eligible to use the new program at no cost.
'Trump Accounts'
The bill also adds a pilot program for 'Trump Accounts,' a type of federal trust account that would offer parents a $1,000 bonus per child they sign up for the program.
It would allow taxpayers to contribute up to $5,000 a year to the accounts, which would be allowed to grow tax-free until the beneficiary withdraws the money at 18 years or older.
The withdrawal would then be subject to either capital gains or income tax rates, depending on the nature of the expense.
Expenses like tuition, a first home purchase, or small business expenses would be subject to the lower capital gains tax rate; all other uses of the funds would be subject to normal income tax rates, including an additional 10 percent penalty for unqualified expenses.
Tobacco Industry Perks Repealed
Another component of the legislation would strip a tax write-off that some U.S. tobacco companies rely on.
Under current law, tobacco companies pay an excise tax when they manufacture or import tobacco into the United States. But a loophole in the Internal Revenue Code of 1986 has historically allowed them to recoup much of this excise tax through a process known as substitution drawback.
The legislation would repeal this refund, meaning that many tobacco companies could face a higher excise tax burden on their domestic sales than they have in decades.
Revocable Tax Exemptions for 'Terrorist-Supporting' Nonprofits
The legislation would enable the administration to revoke the tax-exempt status of nonprofit organizations deemed by the administration as 'terrorist-supporting organizations.'
An amendment to the Internal Revenue Code of 1986, §501(p)—passed as part of the PATRIOT Act—sought to crack down on nonprofits that funneled money to, or otherwise materially aided and abetted, terrorist groups.
The legislation would give organizations deemed to be 'terrorist-supporting' 90 days to amend the situation or face revocation of their tax-exempt status.
This provision is seemingly targeted at nonprofits deemed as supportive of Palestinian terrorist groups, such as Hamas, as part of the administration's efforts to combat anti-Semitism in the wake of Hamas's Oct. 7, 2023, attacks on Israel. However, no explicit criteria beyond those laid out in the original 1986 legislation are provided.
Ending Excise Tax on Firearm Silencers
The legislation also includes a provision to remove the requirement to pay a tax on silencer attachments under the National Firearms Act of 1934.
Currently, such attachments—designed to reduce the sound a firearm makes when fired—are subject to a $20 excise tax. The Republican bill would eliminate that fee altogether.
The move was immediately celebrated by gun rights groups, who portrayed it as a victory for the Second Amendment. Proponents say these attachments can also reduce hearing damage from firearm sounds, while opponents say that such attachments primarily serve to hide evidence of crimes.