Trump’s Big Beautiful Bill Act

President Trump’s Big Beautiful Bill: What’s Inside the Historic Legislation?

President Donald Trump’s “One Big Beautiful Bill” (OBBB) has passed the U.S. House of Representatives and is currently under consideration in the Senate. This comprehensive legislative package encompasses significant tax reforms, spending adjustments, and policy changes across various sectors.

Major Tax Reforms

The OBBB aims to extend and expand provisions from the 2017 Tax Cuts and Jobs Act:

• Permanent Tax Cuts: The bill seeks to make permanent the tax reductions introduced in 2017, primarily benefiting higher-income individuals and corporations.

• Child Tax Credit Expansion: It increases the child tax credit from $2,000 to $2,500 per child through 2028, reverting to $2,000 thereafter.

• SALT Cap Adjustment: The State and Local Tax (SALT) deduction cap is raised to $40,000 for taxpayers earning under $500,000, with the cap phasing downward for higher incomes.

• Temporary Tax Breaks: Tips, overtime, and elder care expenses are made temporarily tax-exempt until 2028.

• MAGA Savings Accounts: Every child born between 2024 and 2028 would receive a $1,000 government-sponsored savings account.

• Remittance Tax: A 5% tax is proposed on money transfers (remittances) sent abroad by non-citizens.

Spending and Policy Adjustments

The bill delivers substantial funding changes with an emphasis on national security and conservative values:

• Medicaid and SNAP Cuts: The bill imposes stricter work requirements and reduces funding for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), potentially affecting millions of low-income Americans.

• Defense and Border Security: Allocates $150 billion to defense, including funding for unmanned drones and missile defense systems, and $70 billion for border security measures such as wall construction and hiring additional border patrol agents.

• Education Changes: Introduces changes to Pell Grant eligibility, ends Federal Direct subsidized loans for undergraduates, and eliminates the Department of Education’s ability to regulate based on gainful employment.

• Healthcare Restrictions: Adds work requirements for Medicaid recipients, increases verification processes, and prohibits Medicaid funding for gender-affirming care and certain nonprofit organizations.

Fiscal Impact and National Debt

The Congressional Budget Office (CBO) estimates that President Trump’s One Big Beautiful Bill could increase the federal deficit by approximately $3.8 trillion over the next decade, largely due to extended tax cuts and expanded defense spending.

The legislation also raises the federal debt ceiling by $4 trillion to avoid a government default. However, as of May 2025, the national debt is approximately $36.2 trillion, and CBO projections indicate it could rise to over $50 trillion by 2034 if current fiscal trends and proposed policies remain unchanged.

Legislative Outlook and Timeline

The bill passed the House narrowly, with a 215–214–1 vote, therefore reflecting divisions within the Republican Party, particularly concerning Medicaid cuts and the SALT deduction cap.

The Senate is expected to propose revisions, and the GOP aims to finalize the bill by July 4 through the reconciliation process, which allows for passage with a simple majority.

Final Thoughts

President Trump’s Big Beautiful Bill is one of the most ambitious and controversial legislative packages in modern American history. Supporters hail it as a bold return to prosperity and security, while opponents warn it’s fiscally reckless and socially divisive.

With the Senate battle heating up, this bill could redefine the 2025 political landscape—and Trump’s legacy.

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