Some Republicans are now scrambling to undo a surprise part of President Donald Trump’s massive 2026 budget bill — after already voting for it.
NBC News reports that a little-known clause buried in the bill would hit gamblers with a new tax — and many lawmakers say they had no idea it was there.
One professional sports bettor warned it could be “potentially catastrophic for the industry.”
NBC’s Sahil Kapur explained: “The clause would reduce the tax deduction on wagering losses from 100% to 90% starting in 2026.” That means gamblers could end up owing the IRS even if they didn’t win anything overall.
“Long story short,” Kapur said, “gamblers could be stuck with a tax bill even if they have zero net winnings in a year.”
Now, even some of the bill’s Republican backers want it reversed.
“That includes the House’s top tax writer, Congressman Jason Smith (R-MO), who told me this tax hike is a mistake by the Senate and that it needs to be undone,” Kapur reported.
Sen. Ted Cruz (R-TX) didn’t hold back either. He called the provision “unfair” and added, “most Republicans didn’t even know this was in the bill when they voted to pass it.”
The bill narrowly passed the Senate earlier this month. The final vote was 50-50, with Vice President JD Vance casting the tie-breaking vote.
Only three Republican senators opposed it: Thom Tillis (R-NC), Rand Paul (R-KY), and Susan Collins (R-ME).
Now that the details are coming to light, the push to repeal has begun. Watch the clip below via NBC News.
