Trump’s ‘Big Beautiful Bill’ passes House. What it means for Illinois taxes on tips, overtime

The U.S. House of Representatives passed President Donald Trump’s "Big, Beautiful Bill" on May 22 with a mere one-vote margin.

The bill encompasses many of Trump’s campaign promises, such as changes in electric vehicle credits and an end to taxation on overtime and tips.

The bill now has to make its way through the Senate, but its chances of getting passed there are slim.

Here’s what to know.

Trump’s ‘Big Beautiful Bill’ explained

The so-called "One Big, Beautiful Bill" is a proposed tax and spending package aimed at expanding certain tax credits, making 2017 tax cuts permanent and changing facets of the country’s energy, health care, border security and more.

As Trump promised throughout his presidential campaign, the bill proposes an end to the taxation of tips, overtime and Social Security, according to USA TODAY. The plan also includes cuts to Medicaid, more frequent eligibility checks, stricter work requirements for childless, able-bodied adults ages 19-64 and blocked Medicaid funding for non-citizens.

Which Republicans voted against ‘Big Beautiful Bill’?

Though Democrats in the House unanimously voted "no" on the bill, only two Republicans followed suit: Kentucky Rep. Thomas Massie and Ohio Rep. Warren Davidson.

Meanwhile, Maryland Rep. Andy Harris voted "present," and Reps. David Schweikert of Arizona and Andrew Garbarino of New York missed the vote entirely.

When does Senate vote on ‘Big Beautiful Bill’?

Though Trump and congressional leaders have set a deadline of July 4 for the bill’s final approval, House Speaker Mike Johnson insisted the bill will pass by Memorial Day on May 26.

The bill must be passed by Oct. 1 at the latest, as this is the start of the new fiscal year. If a spending bill isn’t passed by then, it could lead to a government shutdown.

What is No Tax on Tips?

The bill would establish a new federal income tax deduction for cash tips (including credit and debit card tips) up to a maximum amount of $25,000 per tax year.

The deduction would be available for workers in occupations that "traditionally and customarily" receive tips, according to the bill.

No Tax on Tips income limit

The tax deduction on tips would apply to those earning up to $160,000 per year, which would rise along with inflation.

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What is the minimum wage for tipped workers in Illinois?

The minimum wage for tipped workers, also known as the minimum cash wage, is $9.00 in Illinois, according to the U.S. Department of Labor. The maximum tip credit, meaning the portion of an employee’s tips that an employer is allowed to credit toward the employee’s minimum wage, is 40%.

Chicago’s minimum cash wage is $11.02 for employers with four or more workers, with the tipped wage to be phased out by 2028. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.

What is No Tax on Overtime?

Under the new bill, workers who are paid overtime would be able to claim a new tax deduction through 2028.

The bill includes guardrails to stop "highly compensated employees" from claiming the deduction, as well as undocumented workers by requiring them to list their Social Security number.

Maria Francis, Joyce Orlando, Bart Jansen and Margie Cullen contributed to this article.