The One Big Beautiful Bill, Public Law No. 119-21, was a significant victory for taxpayers and will not only keep more money in their pockets but also reduce the size, scope, and power of the federal government.  The Council for Citizens Against Government Waste (CCAGW) endorsed the legislation and was gratified to see many of its top priorities and some longstanding recommendations enacted into law.  The 10 most important provisions in the law are as follows:

1. Making the Tax Cuts and Jobs Act (TCJA) of 2017 permanent.  If the TCJA provisions expire, American families and businesses will see a 68 percent tax increase, disproportionately impacting those in the lower brackets.  The permanent extension increases wages by up to an average of $11,600 annually and saves taxpayers a total of $1.5 trillion.

2. Restoring the Federal Communication Commission’s spectrum auction authority.  Auctions are authorized through fiscal year 2034 and are expected to raise approximately $88 billion in revenue, create jobs, increase economic efficiency, and promote innovation.

3. Eliminating the Direct File program.  The Internal Revenue Service (IRS) will be required to replace the duplicative and costly Direct File program with a new system that creates a better public-private partnership for tax preparation that can allow up to 70 percent of taxpayers to file their returns for free.

4. Cutting Green New Deal programs.  Tax credits for solar, wind, energy efficient home improvement, clean electricity, clean hydrogen, electric vehicles and other forms of green energy will be phased out, which will protect consumer choice and stop subsidizing previously favored industries.

5. Reforming student loans.  Student loan repayment plans will be reduced to two programs, which will streamline the financial aid system.  The legislation also prevents the President from unilaterally cancelling student loan debt.

6. Improving sugar program administration.  The first sugar programs reforms in several years include modernization of beet sugar allotments, reallocation of tariff-rate quota shortfalls, and closing the refined sugar loophole.  These measures will increase domestic sugar supply and raise the effectiveness of the American sugar industry.

7. Expanding health savings accounts.  Eligibility for personal medical health savings accounts will be expanded, giving workers more control over their healthcare dollars. 

8. Reducing waste, fraud, and abuse in Medicaid.  Work requirements and changes in eligibility for Medicaid will cut waste, fraud, abuse, and mismanagement, reduce dependency on government welfare, and increase benefits to individuals who were originally intended to be covered under the program.

9. Increasing energy exploration.  Increased mining and drilling on federal lands will provide greater access to U.S. natural resources and reduce dependence on the Middle East, China, and Russia.  It will create jobs and stimulate the economy.

10. Restoring the 1099-K reporting threshold.  The IRS will be required to restore the threshold of at least $20,000 and 200 transactions for Americans to submit a 1099-K income reporting form for contract work or online sales, which repeals the Biden administration’s burdensome and unworkable $600 reporting threshold for a single transaction.

CCAGW has more recommendations for cutting spending that will be provided to Congress as it considers both the appropriations bills and more reconciliation bills.