The bill proposes raising the state-and-local-tax deduction cap to $40,000 with a 1% increase every year through 2029, then reverting to $10,000 in 2030. It sets the income threshold at $500,000 and increases it by 1% annually through 2029.

The "big, beautiful bill" will add trillions to the national debt through tax cuts, and millions of people could lose their health insurance.

The legislation now heads to the House for possible final approval, though a handful of Republicans there have already voiced opposition.