Trump signed the bill during a military family picnic at the White House
Washington: US President Donald Trump signed his flagship tax and spending bill into law on Friday during a grand Fourth of July ceremony at the White House, complete with military fanfare and a flyover by B-2 stealth bombers.
“America is winning, winning, winning like never before,” Trump declared, flanked by Republican lawmakers as he signed what he called the “One Big Beautiful Bill.”
The legislation passed through a reluctant Congress just in time for the Independence Day celebration, which marked America’s 249th birthday. The ceremony opened with a fly-by of bombers and fighter jets, including pilots who had carried out recent strikes on Iranian nuclear sites.
The signing capped two weeks of political wins for Trump, including a ceasefire between Iran and Israel and a favorable Supreme Court ruling limiting judges from blocking his policies. He used the Independence Day event to combine these achievements into a single moment of political theater.
The bill fulfills many of Trump’s campaign pledges: extending tax cuts from his first term, increasing military spending, and significantly boosting funding for immigration enforcement. However, it also makes major cuts to welfare programs.
Despite pushback within the Republican Party and opposition from billionaire former ally Elon Musk, Trump pushed the bill through. It narrowly passed the House 218–214 after House Speaker Mike Johnson rallied reluctant lawmakers.
The Senate vote was equally tight, requiring a tiebreaker from Senator J.D. Vance after North Carolina Republican Thom Tillis voted against it and announced he would not seek re-election. Only two Republicans in the House voted no; no Democrats supported the bill.
The bill slashes $1.2 trillion from Medicaid and food stamps, marking the largest cuts to these programs in decades. According to estimates, up to 17 million Americans could lose their health insurance, and numerous rural hospitals may be forced to close.
The Congressional Budget Office projects the legislation will add $3.3 trillion to the national debt over the next decade while eliminating health coverage for nearly 12 million people.
Labor leaders and Democrats condemned the bill as a massive redistribution of wealth from the working class to the ultra-wealthy. AFL-CIO President Liz Shuler called it the “worst job-killing bill in American history.”
“This bill rips health care from millions of workers to fund tax breaks for billionaires and big corporations,” Shuler said.
Democrats have signaled they plan to use the bill against Republicans in the 2026 midterm elections. Democratic National Committee Chair Ken Martin said the law “sealed the fate of the Republican Party,” calling it a “full betrayal of the American people.”
The party is planning a broad campaign, including rallies, voter drives, attack ads, and a vigil to highlight the bill’s most controversial aspects.
Trump lashed out at Democrats for voting against the bill, accusing them of hating him and the country. “Their standard line is to say Republican legislation is dangerous or everybody’s going to die,” Trump said. “It’s actually just the opposite. Everybody’s going to live.”
He dismissed any negative reactions as a “con job” by Democrats. Speaking at a rally in Iowa the night before, Trump said, “They hate Trump — but I hate them, too.”
While Trump described the bill as “very popular,” polling tells a more mixed story. A Washington Post/Ipsos poll found strong support for measures like expanding the child tax credit and cutting taxes on tips, but widespread opposition to reducing food assistance and spending billions on migrant detention centers.
Roughly 60% of Americans said it was “unacceptable” for the bill to increase the $36 trillion national debt by over $3 trillion.
$4.5 trillion in tax cuts, extending Trump’s 2017 reforms.
Makes existing tax rates permanent.
New deductions for tips, overtime, auto loans, and seniors earning under $75K.
Child tax credit increased to $2,200 (not fully refundable for low-income families).
SALT deduction cap raised to $40,000 for five years.
Major tax breaks for businesses to write off equipment and research.
Wealthiest households gain ~$12,000; poorest lose ~$1,600/year.
$350 billion for deportation and border wall initiatives.
100,000 migrant detention beds and 10,000 new ICE agents with $10K bonuses.
Target of 1 million deportations per year.
New fees for immigrants, including asylum seekers.
Billions allocated for shipbuilding, munitions, and troop welfare.
$25 billion for the Golden Dome missile defense system.
$1 billion for Pentagon border security operations.
Deep cuts to Medicaid and food stamps.
New 80-hour/month work requirements for many adult recipients up to age 65.
Parents of children over 14 must meet work requirements.
$35 Medicaid co-pay introduced.
CBO: 11.8 million could lose insurance; 3 million lose food assistance.
States must help fund SNAP if error rates exceed 6% (starting 2028).
Delay granted for high-error states like Alaska.
Rollback of clean energy tax credits from Biden’s 2022 law.
EV tax credits expire Sept. 30, 2025 (previously 2032).
New tax credit for metallurgical coal (steelmaking).
Proposed tax on Chinese-linked wind/solar components dropped.
“Trump Accounts” children’s savings program with $1,000 Treasury deposits.
$40 million for the National Garden of American Heroes.
1% tax on overseas remittances.
New excise tax on university endowments.
$200 tax on gun silencers and short-barreled weapons eliminated.
One-year ban on Medicaid payments to abortion providers like Planned Parenthood.
Expanded compensation for nuclear test victims.
$88 million for pandemic response accountability.
Funding for Artemis moon mission and Mars exploration.
$10 billion/year for five years ($50B total) added to secure GOP votes.
Increased from $25B in the Senate’s earlier version.
Senate removed proposed federal moratorium on state-level AI rules.
Final vote: 99–1 in favor of removal.
CBO estimate: Adds $3.3 trillion to the national deficit over 10 years.
Senate GOP claims it will cut deficit by $500B using “current policy” math.
Watchdog groups call this approach “accounting gimmickry.”
With inputs from AFP, AP
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