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Congressman Mike Lawler Delivers Historic Tax Relief with Passage of the OBBB

The OBBB protects Americans for the largest tax hike in generations, delivers historic tax relief to middle and working class families, strengthens Medicaid, lowers energy costs, and delivers record funding for securing our border.

Washington, D.C. — 7/3/25…
Today, Congressman Mike Lawler (NY-17) issued the following statement after the House voted to approve the final version of H.R. 1, the One Big Beautiful Bill Act, preventing the largest tax hike in American history and delivering long-overdue relief to middle- and working-class taxpayers.

Following last week’s confirmation that the final bill preserved Lawler’s SALT compromise, raising the cap to $40,000 with a $500,000 income ceiling and 1% growth for five years, the bill returned to the House and was passed with these core tax provisions intact, including:

  • Extension of key provisions of the Tax Cuts and Jobs Act (TJCA) of 2017, like the more than doubling of the standard deduction that most filers take
  • No federal tax on tips or overtime pay
  • Expanded child tax credit
  • Expanded tax credits for seniors
  • Preserved small business deductions
  • Expanded pass-through SALT deductibility

According to the House Committee on Ways and Means, only two years after being signed into law, real median household income increased by $5,000 and real wages rose by 4.9% under the TJCA, allowing families to pocket more of their hard-earned money. Had these vital tax provisions expired, New Yorkers would have faced the single largest tax increases on small businesses and working-class families, with the average taxpayer in the Lower Hudson Valley facing an 18% tax hike

However, passing an extension will result in a yearly take-home pay increase of up to $14,700 for a typical family in New York, according to the Council of Economic Advisers. Beyond tax relief, H.R. 1 delivers major wins for families, small businesses, and national security, including:

  • Secures the border by hiring tens of thousands of new ICE and Border Patrol agents, restarting construction of the border wall, and restoring enforcement capacity.
  • Lowers energy costs by expanding domestic production, ending burdensome regulations, refilling the Strategic Petroleum Reserve, and strengthening America’s energy independence.
  • Protects Medicaid for future generations as well as for the seniors, children, individuals with disabilities, and others who rely on the program within the IDD community.
  • Establishes common sense work requirements in Medicaid for certain able-bodied adults without dependents.
  • Creates an environment through spending rescissions, economic growth, and anti-fraud enforcement measures that will foster an economic boom. 
  • Supports small businesses and job creators by preserving pass-through deductions, expanding expensing rules, and eliminating the threat of higher estate taxes.
  • Modernizes U.S. national defense with $150 billion in investments to strengthen military readiness and deter global threats.
  • Strengthens the farm safety net with the first major update since 2002, expanding ag research, livestock biosecurity, and rural investment.
  • Reforms federal permitting and resource development to streamline infrastructure, energy, and forestry projects while ensuring state revenue-sharing.

“Today, we delivered on our promise — to stop the single largest tax hike in American history and put more money back in the pockets of Americans,” said Congressman Lawler. “We secured meaningful SALT relief, locked in tax cuts for families and small businesses, and restored fairness for hardworking taxpayers across New York.”

“This bill is a blueprint for how we can govern responsibly: provide real relief, restore security, and rein in out-of-control spending. The alternative was higher taxes, fewer jobs, and more economic pain. I voted to protect my constituents from that, and today, we got it done,” concluded Congressman Lawler.

H.R. 1 now heads to President Trump’s desk for consideration of being signed into law. 

Congressman Lawler is one of the most bipartisan members of Congress and represents New York's 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties. He was rated the most effective freshman lawmaker in the 118th Congress, 8th overall, surpassing dozens of committee chairs. 

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