"A breakdown of the major provisions in the U.S. President’s sweeping House-approved bill as it moves to the Senate for review."
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On Thursday, the Republican-led House of Representatives passed the "One Big Beautiful Bill" Act, advancing Donald Trump’s key taxation and spending initiatives. The bill now heads to the Senate, where the Republican majority is expected to propose its own revisions.
Make Trump-era tax cuts permanent
The bill extends provisions from the 2017 Tax Cuts and Jobs Act, which lowered tax rates and raised the standard deduction—measures that largely favored high-income earners. While those cuts are set to expire this year, the new legislation would make them permanent. It also temporarily boosts the standard deduction by $1,000 for individuals, $1,500 for heads of households, and $2,000 for married couples—though only through 2028.
New Tax Breaks—But Only During Trump’s Presidency
The bill introduces a range of temporary tax exemptions tied to campaign promises made by Donald Trump. These include deductions for income from tips and overtime, as well as interest on loans for cars assembled in the U.S. Seniors aged 65 and older can claim an additional $4,000 deduction, provided their income is below $75,000 (single filers) or $150,000 (married couples). All of these provisions expire at the end of 2028, aligning with the end of Trump’s potential second term.
Expanded SALT Deduction
The bill lifts the cap on the State and Local Tax (SALT) deduction, which was limited to $10,000 under the 2017 tax law. Under pressure from House Republicans in high-tax states like New York, New Jersey, and California, the new legislation raises the cap to $40,000 annually.
Major Funding for Immigration Enforcement and Border Security
The bill allocates significant resources for immigration enforcement, including $45 billion for detention centers, $14 billion for deportation operations, and funding to hire 10,000 new ICE agents by 2029. Over $50 billion is designated for new border infrastructure, potentially including a wall along the U.S.–Mexico border. Additional fees for asylum seekers and immigration court proceedings could limit access to legal relief.
Significant Increase in the Federal Deficit
According to the Congressional Budget Office (CBO), the bill’s tax changes alone are projected to add nearly $3.8 trillion to the federal deficit.
Limits on Federal Court Authority
A controversial provision would block federal courts from enforcing contempt citations tied to temporary restraining orders or preliminary injunctions. Legal experts warn this could nullify hundreds of existing court orders, including those challenging Trump administration policies.
Cuts to Social Safety Net Programs
To help offset costs, the bill imposes cuts and stricter work requirements on Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Analysts estimate this could result in 5.2 million people losing Medicaid coverage and up to 11 million losing SNAP benefits.
Unequal Benefits Across Income Levels
The bill disproportionately benefits higher-income households. By 2027, top earners are projected to see their household resources rise by 4%, while the poorest Americans will face a 4% drop in 2033 due to reduced access to benefits, per the CBO.
Rollback of Biden-Era Green Energy Incentives
Tax credits for electric vehicles and renewable energy projects introduced during the Biden administration will be gradually phased out. EV incentives end this year, while wind and solar credits will only apply to projects started within 60 days of the bill’s passage and operational by 2028. Clean energy manufacturing credits will expire by 2031, and home energy efficiency upgrades will lose support after this year.
$4 Trillion Debt Ceiling Increase
The legislation raises the U.S. debt limit by $4 trillion. Treasury Secretary Scott Bessent recently warned that without action, the government could reach the borrowing cap by August, risking a default and financial crisis.