Trump’s ‘Big Beautiful Bill’ Passed: Everything You Need To Know About The Tax And Spending Law

<p>In a landmark legislative victory, Republicans have delivered a sweeping bill to former President Donald Trump, just in time for a dramatic July 4 signing ceremony. Dubbed the &ldquo;Big Beautiful Bill,&rdquo; this nearly 900-page package touches nearly every aspect of American economic, immigration, healthcare, and environmental policy &mdash; and is set to reshape the nation&rsquo;s priorities in the coming years.</p>
<p>But what exactly is in this massive piece of legislation, and how will it affect everyday Americans?</p>
<h2>A Narrow Victory in Congress</h2>
<p>The bill made its way through a deeply divided Congress. After passing the House in May by a razor-thin margin of 218-214, it was cleared in the Senate on Thursday &mdash; with Vice President JD Vance casting the deciding vote to break a tie. With Trump’s signature expected on Independence Day, the bill is set to become one of the most consequential legislative acts in recent memory.</p>
<h3>Key Takeaway: $4.5 Trillion in Tax Cuts</h3>
<p>At the heart of the bill lies $4.5 trillion in tax cuts&mdash;an extension of Trump&rsquo;s 2017 Tax Cuts and Jobs Act. These include:</p>
<ul>
<li>A permanent extension of individual and estate tax reductions</li>
<li>An increase in the child tax credit to $2,500 per child, starting in 2025 (set to expire in 2028)</li>
<li>A new $6,000 tax deduction for older Americans earning less than $75,000 annually</li>
<li>Tax-free treatment of tips and overtime pay for workers earning under $150,000</li>
<li>A deduction for car loan interest, up to $2,500 annually, targeting middle-income families</li>
</ul>
<p><br />Additionally, the bill introduces &ldquo;Trump Accounts&rdquo; &mdash; $1,000 government deposits for every newborn between 2025 and 2028.</p>
<h2>What&rsquo;s Changing for Medicaid and Healthcare?</h2>
<p>One of the most controversial aspects of the legislation is its deep cuts to Medicaid:</p>
<ul>
<li>$698 billion reduction over a decade</li>
<li>New work requirements: Able-bodied adults aged 19&ndash;55 must work at least 80 hours per month to qualify for coverage</li>
<li>Stricter eligibility checks, set to begin December 31, 2026</li>
</ul>
<p>The Congressional Budget Office estimates that up to 11.8 million Americans could lose Medicaid coverage over the next ten years.<br />To soften the blow, the bill includes $10 billion annually for rural hospitals over five years &mdash; a $50 billion fund aimed at keeping critical care available in underserved regions.</p>
<h2>A Hard Line on Immigration and National Security</h2>
<p>Delivering on Trump&rsquo;s tough immigration promises, the bill dedicates $350 billion to enforcement and national defense, marking the most significant crackdown in decades:</p>
<ul>
<li>100,000 immigration detention beds</li>
<li>10,000 new ICE agents, each with a $10,000 signing bonus</li>
<li>Expanded Border Patrol staffing</li>
<li>New fees for asylum seekers and green card applicants</li>
</ul>
<p><br />It also steers $25 billion toward the &ldquo;Golden Dome&rdquo; missile defense system and channels another $1 billion to border-related operations managed by the Department of Defense.</p>
<h2>A Blow to Clean Energy Initiatives</h2>
<p>Another major shift comes in the rollback of clean energy tax incentives, many of which were introduced in the 2022 Inflation Reduction Act. The new law will:</p>
<ul>
<li>Eliminate tax credits for electric vehicle purchases, solar panels, home energy efficiency upgrades, and charging stations &mdash; effective 60 days after enactment</li>
<li>Dismantle the Greenhouse Gas Reduction Fund, a program that supported local environmental initiatives</li>
</ul>
<p>Only nuclear energy projects currently under construction (through 2028) will remain eligible for federal support.</p>
<h2>State and Local Tax (SALT) Deduction Gets a Temporary Boost</h2>
<p>For taxpayers in high-tax states, the bill offers a temporary reprieve on SALT deductions:</p>
<ul>
<li>The deduction cap increases from $10,000 to $40,000 for households earning up to $500,000</li>
<li>However, this change expires in 2030, after which the cap reverts to its previous level</li>
</ul>
<h2>A Tectonic Policy Shift &mdash; But At What Cost?</h2>
<p>This sweeping legislation reflects a bold and controversial vision for America&rsquo;s future &mdash; one that prioritizes tax relief, immigration enforcement, and military strength, while rolling back environmental and public health spending. With such sweeping changes, the bill is expected to become a defining piece of Trump&rsquo;s political legacy.<br />But the question remains: Will these sweeping changes uplift the middle class and secure America’s borders, or will they widen inequality and weaken the social safety net?</p>