In a landmark political win, the U.S. Congress has passed former President Donald Trump’s ambitious “One Big Beautiful Bill,” signaling a dramatic shift in the country’s economic and social policy. The bill, which combines trillions in permanent tax cuts with deep spending reductions, was narrowly approved in the House of Representatives on July 3 with a 218–214 vote, following a tie-breaking vote by Vice President J.D. Vance in the Senate.
The nearly 900-page legislation permanently enshrines Donald Trump’s 2017 tax cuts, introduces new deductions for tips, overtime, and auto loans, and boosts child tax credits. Seniors and joint filers will also benefit from increased deductions. The bill allocates $350 billion for border security, including wall construction, detention centers, and military-grade surveillance, and ramps up defense funding.
House Speaker Mike Johnson hailed the package as “transformational legislation,” celebrating its passage with open references to Donald Trump’s leadership. The legislation fulfills Trump’s pledge to secure a major policy win ahead of Independence Day.
Social Safety Nets Cut as Critics Sound the Alarm
Despite the celebration among Republicans, the bill’s sweeping cuts to federal aid programs have triggered a wave of criticism. Key provisions include nearly $1.2 trillion in reductions to Medicaid and SNAP, alongside the imposition of work requirements and cost-sharing mechanisms for recipients. The Congressional Budget Office (CBO) estimates that up to 11 million Americans could lose healthcare coverage as a result.
The CBO also projects that the bill will add between $2.4 and $3.3 trillion to the federal deficit over a decade, despite Republicans claiming otherwise. Financial modeling indicates that low-income households may lose an average of $1,600 annually, while top earners could gain around $12,000. The poorest 10% of Americans may see their incomes decline by nearly 4%, exacerbating inequality.
Democratic leaders have denounced the bill as a “cruel redistribution of wealth,” accusing Republicans of gutting essential services to fund tax breaks for the wealthy. House Minority Leader Hakeem Jeffries called it “mean, vindictive, and deeply un-American,” while progressives staged overnight speeches and procedural interventions in a last-minute attempt to block the legislation.
Energy Rollbacks and Political Fault Lines Deepen
The bill also dismantles key components of President Biden’s climate agenda. It phases out tax credits for renewable energy and electric vehicles, imposes new fees on clean energy firms, and expands fossil fuel production and nuclear energy subsidies. Republican lawmakers argue the changes will lower energy costs and boost reliability. Environmental advocates, however, warn of job losses, rising utility bills, and long-term climate consequences.
The measure narrowly survived internal GOP disagreements, with Senate Republicans Susan Collins, Thom Tillis, and Rand Paul voting against it. Libertarian Rep. Thomas Massie also opposed the bill, citing its fiscal burden. Still, party leadership maintained just enough support to push the measure through both chambers.
The legislation now awaits a final procedural vote before being sent to Donald Trump for his signature, expected before July 4. The bill marks a defining moment for Trump’s political legacy and potentially, his 2025 re-election campaign, as it cements an aggressive return to conservative economic and immigration policy.
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