Signed into law: Taxation and expenditure legislation, detailed in the bill Trump endorsed.
In a historic move, President Donald Trump signed the much-anticipated tax and spending cut bill into law on July 4th, 2025. Known as "The One, Big, Beautiful Bill," this legislation brings extensive tax cuts, increased spending on border security and defense, and significant changes to health and social programs.
### Key Provisions
The bill aims to boost American workers’ pay and increase disposable income, particularly benefiting middle- and lower-income families. Typical American families may receive up to $10,900 more in take-home pay, and workers could see wage increases of up to $7,200. Households earning less than $100,000 get a 12% tax cut.
Specific tax relief includes no taxes on tips, overtime pay, and car loan interest. The Child Tax Credit is locked in and increased to $2,200 for over 40 million families. The Standard Deduction is raised to $31,500 for families, and expansion of 529 education savings accounts and enhanced educational choice is also included.
Small businesses benefit with up to 1 million new jobs created annually and protections for 7.2 million jobs overall. The bill boosts defense and energy production funding, raises the cap on the State and Local Tax (SALT) deduction from $10,000 to $40,000, and creates a $6,000 deduction for older adults who earn no more than $75,000 a year.
### Spending Increases and Policy Enhancements
The bill increases spending on border security, including finishing the border wall and hiring 10,000 new ICE officers to block illegal immigration and combat fentanyl trafficking. This legislation also boosts defense and energy production funding.
### Health and Social Programs
The bill eliminates fraud and waste in Obamacare programs and blocks taxpayer-funded health benefits for illegal immigrants. However, Medicaid and nutrition programs like SNAP face significant cuts to partially pay for the legislation. The Congressional Budget Office estimates the bill will add $3.4 trillion to the federal deficit over 10 years and potentially leave millions uninsured, though Republicans dispute these forecasts.
### Impacts
The bill is controversial because of its significant deficit impact and cuts to health and nutrition programs, raising concerns about access to healthcare for millions. Politically, the bill passed narrowly, with tight votes in both the Senate (51-50) and the House (218-214), underscoring its divisive nature.
The bill increases the nation’s debt limit by $5 trillion to allow continued borrowing to pay already accrued bills. A tax break for electric vehicle buyers will expire sooner than currently law, on Sept. 30 of this year. The legislation contains about $4.5 trillion in tax cuts, with the final price tag projected to increase federal deficits over the next 10 years by nearly $3.3 trillion from 2025 to 2034.
The bill permanently solidifies the tax cuts approved in Trump's first term. It proposes to roll back tax breaks for clean energy projects and eliminates a $200 tax on gun silencers and short-barreled rifles and shotguns. The bill expands the tax credit for the production of critical materials to include metallurgical coal used in steelmaking.
The bill strips out a new tax on wind and solar projects that use a certain percentage of components from China. The bill aims to deport some 1 million people per year and temporarily adds new tax deductions on tip, overtime, and auto loans. The Senate provides $40 million to establish Trump's National Garden of American Heroes.
In summary, the bill represents the largest tax cut in American history with major benefits targeted at workers, families, and small businesses, coupled with increased border and defense spending, but also involves contentious cuts to social safety net programs and adds substantially to the federal deficit.
- The enhanced Child Tax Credit, locked in at $2,200 for over 40 million families, falls under the scope of health-and-wellness and general-news.
- The bill proposes to roll back tax breaks for clean energy projects, which is a significant change in the realm of environmental-science and general-news.
- The bill also include protections for 7.2 million jobs and the potential creation of up to 1 million new jobs for small businesses, a key aspect of finance and business news. Additionally, these job-related provisions can also be considered as part of the general-news discourse.
