The United States Congress narrowly approved the ambitious "One Big Beautiful Bill Act," a cornerstone of former President and current Republican candidate Donald Trump's legislative agenda. Supported by the Republican majority in the House of Representatives, the bill now awaits the president's signature to become law.
Promoted by its advocates as a "generational" package, the law introduces significant tax reforms, substantial increases in defense and border security spending, and severe cuts to social programs, prompting criticism from Democratic opponents and international organizations.
Key Provisions of the Bill
Tax Reform
The law permanently extends the tax cuts enacted in 2017 during Trump's first term. It exempts tips and overtime from taxes for workers earning less than $150,000 annually and introduces "Trump Accounts," tax-advantaged savings accounts for education, housing, or job training. Additionally, the child tax credit is increased to $2,500 until 2028. Taxpayers can also deduct up to $10,000 in interest on loans for American-made cars, and the state and local tax (SALT) deduction cap is raised to $40,000 for those earning less than $500,000 annually.
Defense and Security Spending
The military budget receives an allocation of over $150 billion. In terms of border security, $170 billion is earmarked, including funding for the wall, technology, and agents.
Social Program Cuts
The bill slashes more than $1.2 trillion in federal spending, primarily targeting Medicaid, imposes work requirements for medical assistance eligibility, reduces food aid program (SNAP) subsidies, and gradually phases out tax incentives for renewable energy.
Additional Measures
The legislation increases fees for asylum and immigration permits and imposes a 5% tax on overseas remittances. It also establishes a National Garden of Heroes with a $40 million budget and raises the debt ceiling by $4 trillion.
Criticism and Warnings
President Joe Biden condemned the bill as "reckless and cruel." The International Monetary Fund (IMF) cautioned about its impact on the fiscal deficit, while civil organizations estimate that up to 12 million people could lose medical coverage.
A Political Message
Republican leaders assert that this legislation fulfills the "America First" agenda and conveyed a message to voters: "Every hardworking American should know: this bill is for you."
Key Aspects of Trump's Legislative Agenda
What are the main tax reforms in the "One Big Beautiful Bill Act"?
The bill permanently extends the 2017 tax cuts, exempts tips and overtime for workers earning under $150,000, creates "Trump Accounts" for savings with tax advantages, increases the child tax credit to $2,500 until 2028, allows deductions for American-made car loan interests, and raises the SALT deduction limit.
How does the bill affect defense spending?
The bill allocates over $150 billion to the military budget and directs $170 billion towards border security, including funding for the wall, technology, and additional agents.
What cuts to social programs are included in the bill?
The bill reduces federal spending by over $1.2 trillion, mainly affecting Medicaid, imposes work requirements for medical assistance, cuts SNAP subsidies, and phases out renewable energy tax incentives.
What criticisms has the bill faced?
Critics, including President Biden and the IMF, label the bill as reckless, citing potential impacts on the fiscal deficit and concerns that up to 12 million people may lose medical coverage.