President Donald Trump has secured the biggest legislative victory of his second term with the signing of the 887-page “One Big Beautiful Bill” into law. After passing narrowly in both chambers of Congress with Vice President JD Vance casting the tie-breaking vote in the Senate—Trump signed the bill during a celebratory July 4 ceremony.
The bill bundles several of Trump’s long-standing priorities: permanent tax cuts, expanded defense and border security spending, major cuts to social safety nets, and rollbacks of green energy incentives. Supporters call it a bold reshaping of the American economy and government, while critics argue it favors the wealthy and will leave millions worse off.
Key Highlights of the Bill
Tax Cuts Made Permanent
At the core of the bill is a continuation of Trump’s 2017 Tax Cuts and Jobs Act. The new law makes most of those tax breaks permanent for individuals and businesses. The standard deduction is also expanded permanently, though some benefits, like tip and overtime tax deductions, are set to expire by 2028.
Border Security & Immigration Crackdown
The bill provides:
- $46.5 billion for building and maintaining the border wall and other border infrastructure.
- $45 billion for expanding immigrant detention facilities and hiring 10,000 new ICE officers.
- A minimum $100 fee for asylum seekers, down from the initially proposed $1,000.
There are also new fines for illegal entry and tightened restrictions on healthcare tax credits for immigrants and asylum seekers.
Deep Cuts to Social Programs
To partially offset the bill’s enormous cost, lawmakers made sharp cuts to healthcare and welfare:
- Medicaid will impose stricter work requirements and more frequent eligibility checks, potentially causing up to 17 million Americans to lose coverage over the next decade.
- SNAP (food stamps) will shift part of the program’s cost to states and expand work requirements to adults up to age 64.
- A $50 billion fund has been set up to support rural hospitals affected by the Medicaid cuts.
Green Energy Rollbacks
In a major shift, the bill reverses several clean energy incentives from the 2022 Inflation Reduction Act:
- Ends the $7,500 EV tax credit by 2025.
- Eliminates tax breaks for solar, wind, and energy-efficient home upgrades (unless completed before 2028).
- Shuts down the Greenhouse Gas Reduction Fund.
- Introduces new tax credits for coal production.
New Spending in Defense and Space
Despite the cuts elsewhere, the bill ramps up military and space investments:
- $150 billion increase in defense spending.
- $25 billion allocated to the “Golden Dome” missile defense system.
- $10 billion for Mars exploration and space programs.
- $325 million for decommissioning the International Space Station.
Other Notable Changes
- Child Tax Credit rises to $2,200 (up from $2,000), but less than originally proposed.
- “No Tax on Tips” allows workers to deduct up to $25,000 in tip income from federal taxes (expires 2028).
- Introduces “Trump Accounts”—a $1,000 savings bond for newborns.
- Elite universities will now pay up to 8% tax on large endowments.
- Blocks federal funding to Planned Parenthood for one year.
- Raises the national debt ceiling by $5 trillion.
Who Benefits and Who’s Impacted
Who Benefits:
- Wealthy Americans & Business Owners: Gain from permanent income and estate tax cuts, along with extended breaks for small businesses.
- Defense Contractors & Fossil Fuel Industry: Receive expanded funding and regulatory rollbacks that boost operations and profits.
- Telecom & Space Sectors: Stand to benefit from spectrum auctions and increased government investment in space exploration.
- Elderly & Tipped Workers: Enjoy an expanded standard deduction and temporary federal tax relief on tips and overtime.
Who’s Impacted:
- Low-Income Americans: Face stricter eligibility and work requirements for Medicaid and food assistance programs, potentially losing vital support.
- Clean Energy Firms & EV Makers: Suffer from cutbacks in federal incentives and tax credits for renewable energy and electric vehicles.
- Elite Universities: Targeted with new taxes on large endowments, up to 8%, affecting some of the country’s wealthiest institutions.
- Immigrants & Asylum Seekers: Confront new fines, reduced benefits, and tighter restrictions across healthcare, taxes, and border policies.
- Certain Taxpayers & Tech Firms: Gamblers lose full deduction rights on losses, and some tech companies are disappointed by the absence of AI-related protections.
Political Outlook
Trump and Republican leaders are celebrating the bill as a landmark achievement, calling it one of the most consequential laws in modern U.S. history. But opposition is fierce. House Minority Leader Hakeem Jeffries slammed it as “one big, ugly bill” that harms working Americans.
The bill’s passage is expected to play a major role in the upcoming 2026 midterms, with Democrats hoping to galvanize voters angry over healthcare and welfare cuts. Meanwhile, Trump is counting on his aggressive pro-business and anti-immigration platform to energize his base and lay the groundwork for a potential 2028 comeback bid.
The Bottom Line
The “One Big Beautiful Bill” is a sweeping reshaping of America’s economic, social, and immigration policy. Whether it ultimately helps or harms the country will be determined not just by the numbers but by the voters.
