07.01.25

Hoeven: Senate Passes One Big Beautiful Bill, Providing Permanent Tax Relief for American Families and Small Businesses

Legislation Will Grow Economy, Bolster Border Security, Rebuild Military, Empower Energy Dominance and Support Farmers and Ranchers

WASHINGTON - Senator John Hoeven today helped secure passage of the One Big Beautiful Bill, legislation to provide permanent tax relief for American families and small businesses, while delivering on key promises, including:

  • Securing the border. 
  • Rebuilding our military.
  • Supporting farmers and ranchers.
  • Unleashing American energy dominance.

At the same time, the legislation finds savings of $1.6 trillion through common sense reforms and reducing waste, fraud and abuse, ultimately reducing the deficit by $507 billion.

“The One Big Beautiful Bill will provide permanent tax relief, ensuring that Americans can keep more of their hard-earned dollars,” said Hoeven. “This legislation delivers on promises made by President Trump, including securing the border, investing in our military, empowering American energy dominance and supporting our farmers and ranchers. These are the priorities that will make our nation more prosperous and more secure.”

Tax Relief for Families and Small Businesses

The legislation permanently extends current individual tax rates and bracket changes of the Tax Cuts and Jobs Act, preserving $2.6 trillion in tax breaks for those earning under $400,000 per year, and preventing a $1,700 tax hike on the average family of four.

The bill provides new and expanded tax deductions and credits for individuals, families and seniors, including:

  • No taxes on tips or overtime for millions of American workers.
  • Increasing and making permanent the enhanced child tax credit at $2,200, with $1,700 of that amount being refundable, adjusted for inflation.
  • Permanent relief from the death tax by setting the exemption to $15 million or $30 million for those married filing jointly, adjusted for inflation.
  • Savings accounts for newborns to help build financial security.
  • A new $6,000 tax deduction for millions of low- and middle-income seniors. Combined with other deductions, this will result in the average beneficiary paying zero taxes on Social Security. 

The legislation helps small businesses, including agricultural producers and manufacturers invest in their operations by:

  • Permanently extending the Section 199A pass-through deduction for small businesses, farmers and ranchers.
    • Permanently extending the Section 199A(g) deduction used by agricultural cooperatives.
  • Increasing the Section 179 expensing amount to $2.5 million and increasing the phaseout for qualified property at $4 million.
  • Establishing a 100 percent accelerated depreciation for new industrial and manufacturing facilities that begin construction between 2025-2028.
  • Making permanent the 30 percent interest expense allowance.
  • Permanently extending the 100 percent domestic research and development deduction.
  • Making permanent 100 percent bonus depreciation.

Support for Farmers and Ranchers

The legislation provides strong support for the nation’s farmers and ranchers, and improves the farm-safety net to meet today’s markets and input costs by:

  • Increasing reference prices for ARC and PLC by 10% to 20% (specific increase varies by commodity).
  • Providing built-in future reference price increases with an inflation adjuster and improved price escalator formula to prevent reference prices from becoming outdated when market and input costs change.
  • New safety net begins right away – producers can receive the higher of the ARC or PLC payment for this crop year, 2025, with the new updated reference prices. North Dakota farmers will see tens of millions of dollars in relief in 2025 alone thanks to these updates.
  • Includes key provisions of Hoeven’s FARMER Act to strengthen and expand access to affordable crop insurance
    • Increases premium support for individual-based coverage across nearly all levels – starting at 55% -- by an additional 3-5%.
    • Enhances the Supplemental Coverage Option by raising the coverage level from 86% to 90%, and boosts premium support from 65% to 80%.
  • Extends the sugar program through 2031, while increasing the sugar loan rate to meet current market conditions.
  • Improves livestock disaster programs
    • Sets Livestock Indemnity Program (LIP) payments at 100% of market value for losses from federally protected predators and 75% for weather and disease losses.
    • Improves the Livestock Forage Program (LFP) to provide one monthly payment to eligible producers with grazing land in counties rated D2 (severe drought) for at least four consecutive weeks and two payments if D2 persists during any seven of eight consecutive weeks within the normal grazing period.

Unleashing U.S. Energy Dominance

The One Big Beautiful Bill will help restore American energy dominance by rolling back burdensome Green New Deal policies and empowering domestic energy production, including:

  • Increasing the value of the 45Q tax credit for captured carbon used in enhanced oil recovery (EOR) and utilization to match that of sequestration.
  • Requiring the Interior Department to hold regular oil and gas lease sales across federal lands and waters.
  • Requiring the Bureau of Land Management (BLM) to act timely on coal lease applications.
  • Reducing the royalty rate for oil, gas and coal produced on federal land to their levels prior to the Biden administration’s tax-and-spend legislation.
  • Stopping the Biden-era natural gas tax.
  • Investing in the Strategic Petroleum Reserve.
  • Providing regulatory relief for energy producers and repeals Biden-era Green New Deal policies and programs.

Bolstering the Military

  • $25 billion to support the Golden Dome initiative, with investments in hypersonic testing, ground-based radars, and space-based sensors that support North Dakota-based missions and capabilities.
  • $15 billion to enhance nuclear deterrence, including the nuclear missions based at Minot Air Force Base:
    •  $2.5 billion for the new Sentinel intercontinental ballistic missile (ICBM) program.
    • $500 million to sustain the existing Minuteman III ICBM.
    • $200 million for additional MH-1139 Grey Wolf helicopters.
  • Improves servicemembers’ quality of life through increased allowances and special pays, as well as improvements to housing, health care, childcare, and education.

Securing the Border

  • Completes construction of the border wall, and upgrades barrier systems including access roads, cameras, lights, and sensors.
  • Improves border screening technology to help prevent drug trafficking and human smuggling.
  • Strong funding to hire and train more border security personnel.
  • Funds the Operation Stonegarden grant program to equip state and local law enforcements to cooperate with Border Patrol.
  • Invests in state and local capabilities to detect threats from unmanned aerial systems.

Supporting Water Infrastructure

  • Provides $1 billion in funding for Bureau of Reclamation Water Conveyance Projects, including for eligible projects like the Eastern North Dakota Alternate Water Supply Project (ENDAWS).

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