Trump is expected to sign it into law on July 4 in a celebratory ceremony
President Donald Trump has secured a major legislative win with the passage of his sprawling and controversial "One Big Beautiful Bill."
Passed narrowly in both chambers of Congress—with Vice President JD Vance casting the tie-breaking Senate vote—the bill cements Trump's second-term agenda. It combines deep tax cuts, immigration crackdowns, military expansions, and sweeping reductions to social welfare programs. Trump is expected to sign it into law on July 4 in a celebratory ceremony.
On Thursday, Republicans narrowly passed President Donald Trump’s sweeping tax and spending bill in the House with a 218–214 vote, overcoming internal resistance to meet their July 4 deadline. Only two GOP members—Thomas Massie and Brian Fitzpatrick—voted against the nearly 900-page package.
The Senate had approved the legislation two days earlier by the slimmest margin, 51–50, with Vice President JD Vance casting the tie-breaking vote.
The bill combines tax cuts, deep spending reductions, and key conservative priorities, including expanded defense spending and stricter immigration enforcement. Despite unanimous opposition from Democrats, the GOP held together just long enough to push the final version through.
President Trump is expected to sign the bill in a high-profile ceremony on July 4, with the White House touting it as a “historic victory” that fulfills major Republican policy goals.
The bill makes Trump’s 2017 tax cuts permanent, cementing lower tax rates for businesses and high-income individuals. It introduces temporary tax breaks for tips, overtime, and business R&D until 2028. The bill also temporarily increases the SALT (state and local tax) deduction limit to $40,000, benefiting high earners in high-tax states. There’s also an increase of $200 in the child tax credit, indexed for inflation.
Permanent income tax cuts from 2017
Temporary tax breaks for tips, overtime pay, and R&D
Temporary SALT deduction limit raised to $40,000
$200 increase in child tax credit, indexed to inflation
The bill allocates $46.5 billion to expand border infrastructure, including the construction of a border wall. It provides funding for 100,000 additional detention beds and the hiring of 10,000 new ICE officers. New fines are introduced for individuals attempting to illegally cross the border or for asylum violations, continuing the administration’s hardline stance on immigration enforcement.
$46.5B for border infrastructure and wall
100,000 additional detention beds and 10,000 new ICE officers
New fines for illegal entry and asylum violations
The bill rolls back several clean energy incentives from the Biden administration’s Inflation Reduction Act. It phases out the $7,500 electric vehicle tax credit by 2025, cuts incentives for wind and solar energy unless completed before 2028, and introduces new tax credits for coal production, signaling a shift back toward fossil fuel support.
Cuts to clean energy and EV incentives
Ends $7,500 EV tax credit by 2025
New credit for coal production
Slashes wind and solar incentives unless completed by 2028
The bill slashes Medicaid and SNAP (food stamps) funding, implementing stricter work requirements for able-bodied adults under 65 without children. This could result in the loss of health insurance for up to 17 million people. The bill establishes a $50 billion fund to support rural hospitals, though critics argue it’s insufficient to offset the cuts.
Cuts to Medicaid and SNAP (food stamps)
New work requirements for Medicaid and food assistance
17 million may lose health insurance
$50B fund for rural hospitals
The bill blocks federal funding for Planned Parenthood for one year, continuing the Trump administration’s stance against organizations that provide abortion services.
One-year funding block for Planned Parenthood
The bill boosts defence spending by $150 billion, with $25 billion allocated to the “Golden Dome” missile defense system. It also provides $10 billion for space exploration, including missions to Mars, and $325 million to decommission the International Space Station. Additionally, it introduces “Trump Accounts” for newborns, a $1,000 savings program. Wealthy universities will face new taxes on their endowments.
$150B increase in defense spending
$25B for missile defense and $10B for Mars missions
$1,000 savings for newborns
New taxes on university endowments up to 8%
To pay for the increased spending, the bill raises the national debt ceiling by $5 trillion. This has drawn significant criticism from fiscal conservatives, as it further inflates the national debt.
$5 trillion increase in the debt ceiling
Wealthy Americans & business owners: Enjoy permanent tax cuts, including for estate taxes and income taxes, as well as extended tax breaks for small businesses.
Defense contractors & Fossil fuel industries: Gain from increased defense funding and expanded drilling access, alongside the rollback of clean energy incentives.
Telecom & Space programs: Benefit from spectrum auctions and increased space program funding, including for companies like SpaceX.
Elderly & Tipped workers: Get a larger standard deduction and tax breaks on tips and overtime, at least through 2028.
Low-income Americans: Suffer from cuts to Medicaid and food assistance, with new work requirements likely causing millions to lose benefits.
Clean Energy & EV makers: Face significant cuts to incentives for renewable energy and electric vehicle purchases, with companies like Tesla losing major federal support.
Elite universities: Confront higher taxes on their endowments, with top institutions taxed up to 8%.
Immigrants: Hit by a new 1% tax on remittances and restricted access to healthcare tax credits for asylum seekers.
Gamblers: Can only deduct 90% of their losses, and some tech firms are disappointed by the absence of protections for AI regulations.
Trump and GOP leaders hailed the bill as a huge win, calling it one of the most consequential pieces of legislation ever passed. However, critics—especially Democrats and some moderate Republicans—argue the bill disproportionately benefits the wealthy, inflates the deficit by $3.4 trillion, and harms healthcare access for millions of Americans. House Minority Leader Hakeem Jeffries condemned the bill, calling it "one big, ugly bill" that "does not help the American people."
The political fallout from this bill could have significant consequences in the 2026 midterm elections. Democrats hope voter backlash—particularly from those losing healthcare and food assistance—could help them retake the House. Meanwhile, Trump is betting that his pro-business, tough-on-immigration agenda will energise his base as he eyes a 2028 presidential run.
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