The House Ways and Means Committee on Friday released the framework for President Donald Trump’s latest tax agenda, aimed at extending the 2017 Tax Cuts and Jobs Act (TCJA) and expanding relief for working families. The move marks a key pillar of Trump’s 2025 economic platform, with Republicans preparing to fast-track the legislation using the budget reconciliation process.
Central to the plan is a proposed increase in the child tax credit from $2,000 to $2,500 and an adjustment to the estate tax exemption, raising the threshold from $13.9 million to $15 million. These measures, along with making the TCJA permanent, are designed to shield Americans from what Republicans warn could become a massive tax hike in 2026 if the original cuts are allowed to expire.
“Seven years ago, the Trump tax cuts sparked an economic boom and provided needed relief to working families,” said House Ways and Means Committee Chairman Jason Smith (R-MO). “Pro-family, pro-worker tax provisions are the heart of President Trump’s economic agenda that puts working families ahead of Washington.”
Notably missing from the initial draft is a new tax bracket for high-income earners—a 2.6 percent surtax on individuals making over $2.5 million annually—which President Trump has signaled he is considering. Sources say that element could still be introduced as the bill advances.
In addition to solidifying tax cuts, the package is expected to include several new Trump-backed proposals, such as eliminating federal income taxes on tips, overtime pay, and Social Security benefits—measures popular with service and blue-collar workers.
Republicans plan to use budget reconciliation to pass the bill, bypassing the Senate filibuster and requiring only a simple majority. While the GOP holds a narrow majority in the House, leaders express confidence in uniting around the tax package.
The committee is scheduled to begin debate on the bill Tuesday, with more amendments and refinements expected before final passage.
