On May 20, 2025, the U.S. Senate passed the “No Tax on Tips Act” with unanimous consent. The bill now heads to the U.S. House of Representatives.

The Senate on Tuesday passed a bill that would eliminate federal taxes on tips, advancing a key campaign promise of President Trump’s, with the help of Senate Democrats. Sen. Jacky

They explained that servers are already legally obligated to claim 100% of their tips, including cash. But cash is not tracked to enforce taxation, so it’s well known that servers supplement their meager hourly wages by keeping cash off the books. The unofficially tax-free earnings help people with low incomes get by.

The budget bill approved by the House promises to benefit many food workers, but some details are still unclear.

The Senate passed the No Tax on Tips Act, a key element of Trump's tax cut plan, with bipartisan support despite concerns over its $10 billion annual price tag.

Jimmy Fallon is celebrating the Senate's recent passing of the No Taxes on Tips bill. The NBC late night host started off his Wednesday night monologue with several jokes about the surprise bill, which was passed unanimously on Tuesday.