Washington Update (July 2025)-Slides

Slides

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The "One Big Beautiful Bill Act" (H.R. 1), discussed in a Council for Advancement and Support of Education report, aims to address provisions expiring from the Tax Cuts and Jobs Act by continuing some policies and introducing new elements. The bill seeks to maintain low marginal tax rates and standard deductions but eliminates certain deductions and caps others, with an overall goal of achieving significant budget savings.<br /><br />Education provisions in H.R. 1 bring both positive and negative changes. On the upside, the bill preserves Pell Grant eligibility without altering existing standards too drastically. However, the downsides include capped loan amounts for students and parents, the termination of Grad PLUS loans, and limited new repayment options, reducing deferment opportunities for economic hardships or unemployment.<br /><br />For taxation, the bill makes individual tax rates permanent, maintains the doubled standard deduction, and increases the estate tax exemption. It introduces an unpopular endowment tax hike, affecting specific private colleges and universities, and establishes new charitable deduction rules benefiting non-itemizers. A significant limitation caps itemized deductions, impacting high earners.<br /><br />Other noteworthy provisions include floor limits on corporate charitable contributions, an extension of the 60% AGI limit on cash gifts, and a potential tax credit for private school scholarships. The excise tax on excess compensation expands its reach to numerous employees, indicating revenue-focused adjustments in the bill.<br /><br />Looking forward, further appropriations, implementation of H.R. 1, the potential for another reconciliation package, and additional executive actions are anticipated. Resources have been made available for stakeholders to stay informed and engaged, including advocacy networks, policy trackers, and regional workshops.

Keywords

H.R. 1

Tax Cuts and Jobs Act

budget savings

education provisions

Pell Grant

Grad PLUS loans

estate tax exemption

endowment tax

charitable deduction

private school scholarships