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Home @NYTimes

The Small Tweaks That Republicans Slipped Into the Domestic Policy Bill

May 23, 2025
in @NYTimes, Business
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New York Times - Business

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In their fiscal package, Republicans have slipped in a hodgepodge of tweaks that are, at times, only tangentially related to the rest of the bill.

The domestic policy bill Republicans passed in the House this week is full of broad measures that would have visible consequences across the country. Many Americans would see lower taxes, while roughly 10 million could lose access to their health care.

And then there are changes like repealing a pair of $200 taxes on gun silencers.

As tends to happen when Congress takes up a major piece of legislation, Republicans have slipped in a hodgepodge of tweaks that are, at times, only tangentially related to the rest of the bill. Here’s a look at some of those under-the-radar policy provisions, which could change as the legislation moves through the Senate.

A Tax Break for the U.S. Virgin Islands

The United States collects a minimum tax on income that companies earn overseas. Since the creation of that tax in 2017, the U.S. Virgin Islands, a territory, has been treated as a foreign location for the purposes of the tax. The legislation would create a new carve-out for income earned on the islands, a generous change that is expected to result in a loss of $883 million in tax revenue over the next decade.

Lighter Regulation for A.I. Companies

The bill includes substantial benefits for the artificial intelligence industry, home to some of President Trump’s most active supporters, including David Sacks, the venture capitalist who is now the White House’s A.I. czar.

It sets aside hundreds of millions of dollars for the use of A.I. in naval shipbuilding, customs and border protection, Social Security and information technology. It also places a 10-year moratorium on the enforcement of state laws involving the regulation of A.I. models and systems.

Legal Protections for Trump Officials

Republicans tucked a provision into the bill that would limit the power of federal judges to hold people in contempt, potentially shielding Mr. Trump and members of his administration from the consequences of violating court orders.

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