Massive Tax and Spending Bill Passed by White House

On Friday, July 4, 2025, President Donald Trump signed into law a “massive spending and tax bill” dubbed by the White House “One Big Beautiful Bill.” The enacting of the bill reportedly fulfills “key campaign pledges that Trump made during his reelection bid.” Although passed 218 to 214 by the House Republicans, “all 212 Democrats voted in unison against the bill and were joined by two republicans. Ultimately following an all-night session, the necessary votes were secured to narrowly pass the domestic policy bill just a few days after Senate Republicans passed it by a vote of 51-50, having been able to sidestep a Democratic filibuster by utilizing a special budget tool known as reconciliation. A snapshot of the key provisions in the bill are provided below:

$4 Trillion in tax cuts were appropriated to extend Trump’s 2017 tax cuts which are set to expire at the end of 2025, thereby avoiding the taxes increases that would have otherwise occurred for most households.
Through 2028, Americans will be able to deduct up to $25,000 for tip wages and $12,500 for overtime pay, but the deductions will be reduced for those earning an income higher than $150,000; the child tax credit was increased from $2,000 to $2,200 per child an adjusts for inflation after 2025; and the tax deduction for people over the age of 65 earning $75,000 or less was increased to $6,000 through 2028.
The nation’s debt ceiling was raised by $5 trillion to avoid the risk of default if needed should the government be unable to meet its obligations due to programs already authorized by Congress surpassing the previous debt limit, which according to nonpartisan Congressional Budget Office (CBO) would have been at some point between mid-August and the end of September — “a scenario that economists say would be catastrophic.
To qualify for Medicaid benefits, able bodied adults are now required to work 80 hours per month until age 65, but there are carve outs for parents of children under the age of 14 and those with disabilities. The CBO estimates that the cuts could lead to nearly 12 million people losing health coverage.
The Supplemental Nutrition Assistance Program (SNAP) now requires able bodied adults to work up to age 64 in order to qualify for the food assistance program. Exemptions are included for parents with children under 14. Limits have been established on the ways states can offer waivers for the expanded work requirements; and in addition, states will take on a greater share of the costs – changes that will go into effect in 2028.
$46.5 Billion allocated for continued construction of Trump’s border wall, $5 billion for Customs and Border Protection facilities, and $10 billion for border security more broadly.
Tax incentives for clean energy will phase out sooner than scheduled, likely resulting in fewer wind and solar projects being built in America and an increased use of natural gas to generate electricity.
The cap for State and Local Tax Deductions (SALT) will temporarily be lifted from $10,000 to $40,000 for married couples earning up to $500,000 until after 2028.
A $550 charge to immigrants for work authorization applications has been created with renewals required every six months.
A new standard repayment plan called the “Repayment Assistance Plan” is an income-based plan that replaces several existing student loan repayment plan options. In addition, the amount of federal loans parents and graduate students can take out each year is capped.

Source: https://www.npr.org/2025/06/28/g-s1-74388/senate-big-beautiful-bill

Source: https://www.npr.org/2025/07/03/nx-s1-5454841/house-republicans-trump-tax-bill-medicaid