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.

The Senate narrowly approved President Donald Trump's signature second-term policy bill, a nearly 900-page package packed with tax cuts and other campaign promises, in a major legislative victory for the president that came after a tense debate within his party that stretched on for nearly four days.