President Donald Trump’s “One Big Beautiful Bill Act” now formally goes to his desk today, July 4, for signature. It was passed by the Republican-controlled House on July 3 by a narrow 218–214 vote. The colossal 1000-page bill brings permanent tax cuts, colossal Medicaid and food aid rollbacks, tighter immigration restrictions, and broad changes in education, defense, and energy. With this, Trump locks up many of his essential policies into federal law. The bill’s effects will transform American lives—particularly low-income families, students, and older people.
Permanent Tax Cuts and Deductions
The bill cuts tax permanently. Overtime wages, tips, and social security benefits are no longer taxable. The child tax credit increases by $2,200. The SALT deduction limit rises from $10,000 to $40,000, which helps residents of high-tax states. Older people with incomes below $75,000 are allowed an additional deduction of $6,000. Corporate tax decreases under the 2017 tax reform will also become permanent, providing $4.5 trillion in relief.
Healthcare Takes Major Budget Hit
The bill slashes Medicaid, strips billions from healthcare and food aid, and forces parents with children 15 or older to work 80 hours to keep their coverage. Medicaid providers will have tax rates reduced from 6% to 3.5%—but only one year after its passage. SNAP benefits will also be reduced, cutting $230 billion over a decade, threatening 40 million individuals.
Border and Defense Spending Booms
The bill puts $46 billion towards constructing the border wall and includes $45 billion for additional detention centers. ICE growth and Marine deployment also receive increases. The bill allocates $350 billion to defense, including $25 million for missile systems like the Golden Dome, and sets aside $30 billion to fund deportation fees.
Student Loan and Education Overhaul
Loan repayment becomes more difficult. Repayment plans decrease from four to two, and monthly payments increase. Degree-holders will see their average increase by $2,929 per year. The bill defunds Planned Parenthood and blocks Medicaid money from going to any clinic that performs abortion services.
Workforce and Diversity Cuts
The federal government will have fewer workers. Agencies will consolidate operations, and incentives for civil servants will decline. The government is reallocating broadband funds away from states that regulate AI.
Transition to Fossil Fuels
A stark energy transition, the bill takes funding away from clean energy initiatives. The government reinstates fossil fuel subsidies and reverses incentives for renewables.
It is sweeping legislation that marks a tough turn in American policy. With tax reductions for the rich, budget slashing for the people with low-income, and tightened borders, Trump’s Big Beautiful Bill represents a landmark moment in U.S. policymaking.