LaMalfa Statement on House Passage of Budget Reconciliation Package

July 3, 2025
Press Release

Washington, D.C.—Today, Congressman Doug LaMalfa (R-Richvale) released the following statement after the House passed the budget reconciliation package, sending it to President Trump’s desk for final approval:

"This package delivers a lot of what we’ve been pushing for years. It means more jobs and a stronger economy. It makes Social Security checks tax-free for most seniors, protects Medicare, makes sure tips and overtime pay aren’t taxed, and extends tax relief so families can hold on to more of what they earn. It also opens up more of our country for energy and timber production and takes care of the West’s water needs by fixing canals and building more storage. It funds actually securing the border so we can finally finish the wall, remove criminal illegal aliens and get this crisis under control. Importantly, it gets us back to the principle that if you’re a healthy able-bodied adult, you should be employed. I’m glad to see the House pass it and look forward to seeing it signed into law."

The budget reconciliation package is expected to be signed into law by the President in the coming days.

Background:

  • Tax Relief for Working Americans: Extends significant tax cuts, including about a 15% cut for those earning $30,000–$80,000. Expands the Child Tax Credit and adds a senior tax deduction of $6,000 to offset taxes on Social Security. Also exempts tips and overtime from being taxed. The median family in California’s 1st District will save around $3,500 under this bill.
  • Helping Families Afford New Cars: Makes it easier for working Americans to purchase new vehicles by making interest on new purchases of American made cars deductible.
  • Strengthens Timber & Farming: Expands timber harvesting and strengthens crop insurance and conservation tools, without adding red tape.
  • Public Lands: No sale of federally managed public lands.
  • Water Storage Expansion: Invests $1 billion to upgrade and expand water storage and fix canals, helping the West store and deliver more water in wet years.
  • Rural Healthcare: Includes a new $50 billion fund to keep rural hospitals afloat as states change Medicaid formulas.
  • Medicaid & SNAP Reform: Requires able-bodied adults without dependents (ABAWDs) to work, volunteer, or pursue education for at least 80 hours per month. Ends benefits for 1.4 million illegal immigrants.
  • Protects Seniors: Does not touch Social Security or Medicare while adding additional tax deductions to help seniors.
  • Energy & Resource Development: Repeals Green New Deal-style handouts, expands American oil, gas, and mineral production.
  • Border Security & Immigration Enforcement: Fully funds Trump’s border wall, ramps up deportations, adds thousands of new ICE and Border Patrol agents.

Congressman Doug LaMalfa is Chairman of the Congressional Western Caucus and a lifelong farmer representing California’s First Congressional District, including Butte, Colusa, Glenn, Lassen, Modoc, Shasta, Siskiyou, Sutter, Tehama and Yuba Counties.

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