Early Thursday, House Republicans narrowly passed a sweeping legislative package — the One Big Beautiful Bill Act — that advances several of former President Donald Trump’s top policy priorities. The bill passed 215–214 after months of internal GOP negotiations and last-minute changes to win over both centrists and fiscal conservatives.
At over 1,000 pages, the legislation combines tax cuts, safety net overhauls, immigration crackdowns, defense expansion, and fossil fuel incentives into a single omnibus package. While Trump and House GOP leaders hailed it as a signature achievement, Democrats criticized it as a “Robin Hood-in-reverse” measure that favors the wealthy at the expense of working families.
Here’s a breakdown of the key provisions:
Major Tax Cuts — and Rollbacks on Green Incentives
- Individual and Estate Taxes: The bill makes permanent the 2017 Trump-era tax cuts, raises the estate tax exemption to $15 million (indexed for inflation), and introduces temporary tax breaks for tips, overtime, and some car loan interest.
- Standard Deduction Boost: A temporary increase of $1,000 for individuals and $2,000 for joint filers; seniors receive an additional $4,000 deduction through 2028.
- Child Tax Credit: Temporarily raised by $500 to $2,500 for 2025–2028 before reverting to $2,000 with inflation adjustments.
- SALT Deduction: The state and local tax cap is raised from $10,000 to $40,000 for those earning under $500,000, phasing down for higher incomes.
- Business Tax Cuts: Small businesses can now deduct 23% (up from 20%) of qualified income. Full expensing of domestic R&D, machinery, and equipment is temporarily allowed.
To help pay for the package’s estimated $3.8 trillion cost, the bill accelerates the rollback of Biden-era clean energy tax credits, shifting incentives back toward fossil fuels.
Medicaid and Food Aid Cuts with New Work Requirements
- Medicaid: Introduces “community engagement” mandates (80 hours/month of work, education, or service) for able-bodied adults without dependents, starting in late 2026. Eligibility must now be verified twice yearly. The Congressional Budget Office estimates this would cut health coverage for 8.6 million Americans.
- SNAP (Food Stamps): Cuts $267 billion over 10 years. States would begin covering 5% of benefit costs and 75% of administrative costs. Work requirements are expanded:
- Applies up to age 64 (up from 54).
- Only parents with children under age 7 are exempt (previously under 18).
Trump’s ‘Trump Accounts’ for Babies
Originally branded as “MAGA accounts,” the bill creates federally funded Trump Accounts for babies born between January 1, 2024, and December 31, 2028. Each child receives $1,000 at birth. Families can contribute up to $5,000 annually. Funds become partially accessible at age 18 and fully at age 30 for education, housing, or other uses.
Immigration Crackdown and Border Spending
The bill authorizes:
- $46.5 billion to restart border wall construction.
- $4 billion to hire 8,000 new border and customs agents.
- $2.1 billion in bonuses for retention and recruitment.
- $1,000 asylum application fee for migrants — a first in U.S. history.
- A plan to deport 1 million immigrants per year and detain up to 100,000 individuals.
Defense Expansion and Missile Shield Initiative
- Nearly $150 billion in new defense and national security funding.
- $25 billion for Trump’s long-touted “Golden Dome for America” — a missile defense shield.
- $21 billion to replenish munitions stockpiles.
- $34 billion for naval fleet expansion and shipbuilding.
- $9 billion to improve military housing, healthcare, and pay.
Student Loans Overhaul and University Tax Hikes
- Student Loan Reform: Replaces current repayment plans with just two — a standard 10–25 year option and a less generous income-based assistance plan.
- Repeals regulations that allow loan forgiveness for students defrauded by schools or whose colleges close.
- University Endowments: Imposes up to a 21% tax on large endowments, targeting elite institutions.
Guns, Planned Parenthood, and Cultural Flashpoints
- Gun Silencers: Repeals the $200 federal tax on silencers imposed in 1934. The NRA supports the change; gun safety groups warn it hampers police response to mass shootings.
- Planned Parenthood: Bars Medicaid funding for the organization, limiting access to reproductive and preventive health care for millions.
Drilling, Mining, and Deregulation on Public Lands
- Expands drilling, logging, and mining leases on federal lands.
- Cuts royalty rates paid by fossil fuel companies.
- Streamlines environmental permitting to speed up development — reversing Biden-era climate policies.
What’s Next
Though passed in the House, the bill faces an uncertain path in the Senate, where Republicans are pushing for deeper cuts and tweaks to temporary provisions. Major revisions are expected before a potential August vote.
