The provision emerged from President Donald Trump’s campaign pledge to end taxes on Social Security. But experts say many are excluded.

Fiscal hawks have concerns over the legislation’s ballooning price and some moderate conservatives are uneasy about steeper cuts to Medicaid.

The "no tax on tips" provision within the Senate version of the One Big Beautiful Bill Act allows tipped workers to deduct tip income from their federal taxable income, up to $25,000 annually. The deduction phases out for individuals earning more than $150,000 and couples earning over $300,000.