The $40,000 cap would begin in 2025, with the same $500,000 income phaseout, and both figures would rise by 1% annually from 2026 through 2033.

At some 887 pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations.

Republicans squeaked the tax-and-spending megabill through the Senate, capping a long night of dealmaking to win over holdouts, with a tie-breaking vote from Vice President JD Vance.