Perks Now, Pain Later: 12 Ways Trump’s Megabill Pushes Tradeoffs Beyond Election Day

For all four years of Donald Trump’s presidency — and those years only — Americans would enjoy benefits like no taxes on tips or overtime, under the massive party-line legislation House Republicans are trying to pass this month.

Then it won't be until 2029, when congressional GOP incumbents have already run for reelection and Trump is gone from the White House, that voters feel the sting from many of the "pay-fors." That includes much of the Medicaid cuts estimated to strip health care coverage from more than 10 million people, plus the nixing of clean energy tax perks Democrats created during the Biden administration.

In each slice of the megabill House Republicans are working to tie up this week, policies would kick in immediately that curry favor with voters and add trillions of dollars to the federal deficit — before those costs are ultimately offset with unpopular policies that hit after the 2026 midterms and the 2028 presidential election.

The clever legislative strategy is nothing new for the modern Congress. But the House bill is unquestionably the most drastic display of instant gratification on the incumbent president’s watch before the pain sets in when his successor is inaugurated. And the glaring ploy is spurring Republican threats of opposition on both sides of the Capitol, as GOP leaders aim to steer Trump’s “big, beautiful bill” past the Senate filibuster this summer.

“This needs to be a serious effort, not a card trick. We have a chance to fix that in the Senate version," Sen. John Cornyn (R-Texas) said this week. "If there was ever a time, that time has long passed — to be pretending to do cuts and not really getting the job done."

Here are a dozen ways House Republicans have front-loaded new spending and tax cuts, while delaying tax hikes and spending reductions.

PERK

‘MAGA’ deposit for babies

Babies born in 2024 through 2028 would start their lives with $1,000 in a tax-preferred savings fund, called a “MAGA account,” covered by the federal government. Babies born after 2028 wouldn’t get that cash infusion, but some parents would still be able to invest $5,000 a year for young kids in later years.

Runs through: 2028
Estimated cost: $13 billion

PERK

$4,000 tax break for seniors

The standard deduction would be boosted by $4,000 for people older than 64 years old, phasing out at higher income brackets.

Runs through: 2028
Estimated cost: $72 billion

PAIN

Medicaid work requirements

Most people receiving Medicaid health care coverage would have to work at least 80 hours a month or be enrolled in an education program at least part time. Fiscal hawks in the House are not happy that the mandate wouldn't be enforced until 2029 and are pressuring Speaker Mike Johnson to move it up.

“Significant changes or it ain’t going anywhere. It’s laughable that you don’t have Medicaid requirements until ‘29," Rep. Chip Roy (R-Texas) said this week. "They’re trying to say ‘Oh we did the math.’ No you didn’t. It's phony math."

Kicks in: 2029
Estimated savings: $301 billion

PERK

Military boost

Republicans are piling on an extra $150 billion to the military’s budget through their party-line package, breaking from the traditional practice of filling the Pentagon’s coffers through yearly government funding negotiations with Democrats. The military could use the money immediately, but it would expire less than a year after Trump’s presidency ends.

Runs through: September of 2029
Estimated cost: $150 billion

PAIN

Nixing clean energy credits

Fulfilling Trump’s promise to wipe out President Joe Biden’s landmark climate law, the bill would end many green tax incentives beginning after Trump’s presidency — including credits for producing and investing in clean energy that are popular with a wide cross-section of Republicans and their constituents. The credits would start to phase out at the start of 2029.

The House bill would also phase out the production tax credit for nuclear power starting in 2029, another strongly favored policy among many Republicans.

Across the Capitol, some GOP senators are already demanding changes. And Democrats are ready to highlight the irony of Republicans claiming fiscal austerity while pushing off their “pay-fors.”

“I kept saying that there’s going to be a lot of things that start four years out," Sen. Jeff Merkley of Oregon, the top Democrat on the Senate Budget Committee, said this week. "That's kind of a violation of integrity with the American people, pretending that you're not hurting them as much as you really are. We’re going to make sure we draw a lot of attention to that.”

Kicks in: 2029
Estimated savings: $193 billion

PERK

No tax on tips

Most workers wouldn’t pay taxes on tips, so long as those tips are voluntary and customers decide the amount. That perk, along with the other tax cuts Trump pushed on the campaign trail, would disappear after 2028.

Democrats say the four-year lifespan of Trump's tax promises, along with the delayed onset of the policies meant to cover the lost revenue, undermine the GOP argument that the package is meant to shrink the federal deficit.

“Expiration date: 2029. I noticed that. It’s just wild," Rep. Richard Neal of Massachusetts, the top Democrat on the tax-writing Ways and Means Committee, said in a brief interview this week. "By now their arguments are starting to crater. I mean, it's pretty apparent you can't defend what they put together.”

Runs through: 2028
Estimated cost: $40 billion

PERK

R&D write-offs

The bill would allow companies to write off their research costs immediately. Trump's 2017 tax law changed those rules, requiring companies to spread out their deductions over five years.

Runs through: 2029
Estimated cost: $23 billion

PAIN

Medicaid address checks

States would have to verify addresses of people enrolled in Medicaid and turn that information over to the federal government, in an attempt to root out fraud in Medicaid and prevent people from being enrolled in more than one state.

Kicks in: October of 2029
Estimated savings: $17 billion

PERK

Car loan deduction

People who pay car loans could deduct up to $10,000 a year in interest. The perk would shrink for taxpayers whose incomes top $100,000, or $200,000 for people filing jointly.

Runs through: 2028
Cost: $58 billion

PERK

Overtime deduction

Workers could deduct overtime pay, with some exceptions for higher earners. That new tax perk is among the most expensive on Trump's wishlist, and fiscal hawks are demanding that the cuts meant to offset those costs go into effect during the same timeframe.

“If we want new tax cuts, we need to figure out how to pay for them at the same time they’re implemented," Sen. Rick Scott (R-Fla.) said this week.

Runs through: 2028
Estimated cost: $124 billion

PERK

Border security

The Department of Homeland Security would immediately get tens of billions of dollars under the bill to boost border security and deportation efforts, including almost $47 billion to build out the border wall and $5 billion for Border Patrol facilities.

Runs through: September of 2029
Estimated cost: $62 billion

PAIN

SNAP cost shifting

The GOP bill would force states to cover 5 percent to 25 percent of food aid costs under SNAP, the nation’s largest anti-hunger program. That mandate would suck up billions of dollars from state budgets, forcing states to either raise their own taxes or make other budget cuts.

Kicks in: October of 2027
Estimated savings: $128 billion

Brian Faler, Ben Leonard, Grace Yarrow, Connor O’Brien, Josh Siegel, Bernie Becker, James Bikales and Kelsey Tamborrino contributed to this report.