After a marathon overnight session, the House of Representatives passed the “One Big Beautiful Bill (OBBB) Act” on May 22, 2025, by a vote of 215-214, with one voting present. The massive bill is the signature priority for President Trump and the Republican majorities in Congress. The OBBB contains provisions related to tobacco drawback, specifically limiting the amount of drawback granted on tobacco products and related products. This limit applies to both the drawback of excise tax under the Code and the Tariff Act when substituted merchandise is exported or destroyed. Here are some key links:

• Rules Committee Print
• Manager’s amendment changing the Rules Committee Print
• Committee Print changes from based text
• CBO preliminary analysis

The bill now goes to the Senate, where Republican senators hope to make many changes to the bill. However, President Trump has urged the Senate to act quickly. Speaker Mike Johnson (R-LA) warned the Senate that the House bill is the product of a delicate agreement that barely passed, warning the upper chamber against major changes. But many Senate Republicans have concerns about the tax components, the SNAP burden on states, the implications of Medicaid changes and several other major elements of the bill.

In addition, many House provisions likely violate the Senate’s Byrd Rule which prohibits policy provisions in a spending/tax reconciliation bill. Only time will tell how modest or ambitious the Senate’s changes to the bill will be. Senate Majority Leader Thune (R-SD) indicated this week that he has a goal of approving the bill prior to the 4th of July, which is in line with the House’s timeline, but Senate staff have privately indicated that they believe the real deadline is the start of the August recess. Read more here.