Trump’s new tax reform bill narrowly passed the House, including a surprise $12 billion reimbursement for Texas’s border security expenses, spotlighting GOP priorities on immigration and state sovereignty.
At a Glance
- House passed Trump’s tax reform package by one vote after a last-minute amendment
- The bill includes $12 billion to reimburse Texas for Operation Lone Star expenses
- Operation Lone Star has cost Texas taxpayers over $11 billion since 2021
- The tax package also extends the 2017 Tax Cuts and adds new cuts and credits
- Bill now moves to the Senate under budget reconciliation rules
Border Refund Becomes Budget Battleground
House Republicans have passed a sweeping tax reform bill that does more than reshape the U.S. tax code—it also promises to refund Texas $12 billion for its unilateral efforts to secure the southern border. The reimbursement provision, inserted at the eleventh hour through a “managers amendment,” was a key demand from the Texas delegation, led by Governor Greg Abbott.
Abbott launched Operation Lone Star in 2021 after accusing the Biden administration of neglecting federal border responsibilities. Since then, Texas has spent over $11 billion in state funds on everything from deploying the National Guard to building sections of border barrier.
Watch a report: $12B Reimbursement for Texas Border Costs.
From Tax Cuts to Immigration
The tax bill—called the “One Big Beautiful Bill” by House Republicans—extends several key provisions of the 2017 Tax Cuts and Jobs Act. It also introduces a suite of new measures tailored to Trump’s economic and cultural agenda. These include child savings accounts, a temporary $500 boost to the child tax credit, and deductions for U.S.-assembled vehicle loans. Additionally, it allocates nearly $47 billion for new border wall construction, adds asylum processing fees, and eliminates taxes on tips and overtime income through 2028.
The border security refund is not just symbolic—it sets a precedent for federal recognition of state-level enforcement expenditures, particularly in GOP-led states critical of Washington’s immigration policies. A new federal grant structure could also allow other states to recoup similar costs.
Senate Fight Ahead
Despite House passage, the bill’s future remains uncertain in the Senate. Republicans plan to use budget reconciliation to bypass the usual 60-vote threshold. Still, moderates and fiscal hawks may balk at the scale of the spending, especially in a bill also cutting taxes.
Abbott celebrated the initial win but acknowledged the battle ahead: “I am grateful that the Texas Congressional Delegation pushed for its inclusion… but there is more work yet to be done to get this legislation to the finish line.”
Whether the Texas reimbursement provision survives the Senate could hinge on national sentiment around border policy—and how far the GOP is willing to go to tie fiscal measures to immigration enforcement. For now, the Lone Star State is one step closer to recouping the billions it spent doing what it says Washington wouldn’t.
