Congress just voted in favour of a huge tax and spending bill referred to as the “One Big Beautiful Bill.” It passed the House narrowly, 218–214, after being approved in the Senate, 51–50. President Trump will sign it on July 4. That makes it law in short order.
Tax Cuts
The bill makes permanent Trump’s 2017 tax savings. It eliminates taxes on car loan interest, tips, and overtime. Families receive an increased child credit, and seniors can deduct up to $6,000 if they make less than $75,000. In total, it provides approximately $4.5 trillion in long-term tax relief.
The bill allocates funds for defence and border control. It provides $160 billion for the military and $350 billion for immigration enforcement, including expansion of detention facilities. However, it reduces Medicaid by $1 trillion and cuts food aid. Clean energy programmess are also being rolled back.
Bigger Deficit Ahead
The Congressional Budget Office estimates that this bill will increase the national debt by $3.3–$3.4 trillion over the next ten years. Critics say it jeopardises fiscal stability but supporters maintain the tax reductions will stimulate growth, and deeper deficits will not follow.
In either case, the U.S. will borrow more.
High-income earners and corporations are obvious winners. Such individuals gain most from permanent tax reductions and eased deductions. The poor families suffer most. Millions can lose Medicaid or SNAP. Experts warn thousands could lose health benefits and food assistance.
Political Maneuvering
Republicans pushed the bill through using budget reconciliation to circumvent a Senate filibuster. They mobilised support despite slim margins. Democrats organised intense opposition, including an eight-hour speech by House Minority Leader Hakeem Jeffries, but Republicans pulled it off.
Trump toasted at an Iowa rally, declaring the package historic. He used a derogatory term to refer to bankers, which evoked outrage. Nevertheless, supporters cheered the forecast of bigger paychecks and tighter borders.
The Road Ahead
The bill becomes law after Trump’s July 4 signature. Then comes the tricky part: implementing complex tax changes, border plans, and cuts to health programs. States must adjust Medicaid rules. Federal departments must roll back energy incentives.
It might take months or years to see the full effects.
This “Big Beautiful Bill” is a watershed change in U.S. policy. It solidifies Trump-era tax cuts. It focuses on defence and border security. And it cuts welfare and energy programmes.
It comes at a prohibitively high price: a record-breaking deficit and stretched-thin aid to millions. That makes it both a political victory and a fiscal gamble.
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