Sen. Ted Cruz (R-TX) just delivered a major legislative victory for President Donald J. Trump and the American working class, announcing that the U.S. Senate passed the “No Tax on Tips Act” by a unanimous 100–0 vote—an extraordinary display of bipartisan support for one of Trump’s most popular campaign promises.

The legislation, which Cruz introduced alongside Democrat Sen. Jackie Rosen (D-NV), eliminates federal income taxes on tips—a crucial lifeline for millions of American workers in hospitality, service, and gig economy jobs.

“President Trump made a promise to the American people that he would eliminate taxes on tips. In Congress, I formed a bipartisan, bicameral coalition to get that done, and in the Senate introduced the No Tax on Tips Act. Today, I went with Senator Rosen to the floor to secure Senate passage of the bill,” Cruz said.

Cruz hailed the bill as transformative for blue-collar Americans:

“This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck. I urge my colleagues in the House to pass this important bill and send it to the President’s desk to be signed into law.”

The bill defines “cash tips” broadly—including checks, credit card charges, debit card charges, and traditional cash—and allows those wages to be 100% deductible on federal tax returns. It includes “guardrails” to ensure the tax break benefits only legitimate tipped workers.

This is far from Cruz’s first major economic policy win. He played a key role in the 2017 Tax Cuts and Jobs Act that slashed taxes for families and businesses and helped shepherd the pro-growth USMCA trade deal to passage. The U.S. Chamber of Commerce honored Cruz with its “Spirit of Enterprise” award for his ongoing commitment to jobs and small business in Texas.

Now, the “No Tax on Tips Act” moves to the Republican-controlled House of Representatives, where it is expected to pass swiftly. CNBC reported that the bill matches provisions previously passed by House Republicans in May as part of their broader domestic policy plan.

The proposed tax relief would apply from 2025 through 2028 and benefit both employees and independent contractors. The measure is designed to function whether taxpayers itemize or use the standard deduction.

Key differences between House and Senate versions:

• The Senate version caps the tip deduction at $25,000 annually.
• The House version allows an unlimited deduction.
• Income phase-out thresholds differ:
  • House version cuts off the benefit entirely once income reaches $160,000.
  • Senate version gradually phases it out beginning at $150,000 for individuals and $300,000 for married couples, reducing the deduction by $100 for every $1,000 over the threshold.

The legislation also protects against future abuse by limiting eligibility to jobs that “customarily and regularly” received tips prior to December 31, 2024. The U.S. Treasury is ordered to publish a list of qualifying job titles within 90 days of the law’s passage.

In a rare moment of unity, even top Democrats praised the measure. Senate Majority Leader Chuck Schumer (D-NY) and Sen. Rosen both voiced support, signaling strong momentum heading into the House.

With this bill, President Trump continues to fulfill promises to the American worker—cutting taxes, defending jobs, and putting money back in the pockets of those who need it most. The “No Tax on Tips Act” is yet another win for working-class Americans—and a major political triumph for the president just over six months into his second term.