Trump Signs Sweeping Tax Cut and Spending Bill into Law
US President Donald Trump signed a massive legislative package into law, fulfilling a key campaign promise. The "One Big Beautiful Bill" enacts some $4.5 trillion in tax cuts, extends his first-term policies, and provides $350 billion for national security and border measures, including funding for a border wall and mass deportations. Critics argue the bill benefits the wealthy while making deep cuts to social programs like Medicaid and food assistance, potentially leaving millions uninsured.
Unpacked:
The bill includes permanent extensions of the 2017 Tax Cuts and Jobs Act, increased spending for border security and defense, expanded energy production, and provisions like no tax on tips, overtime, or Social Security income. It also establishes savings accounts for newborns and expands the Child Tax Credit.
The bill passed narrowly: the House approved it 218-214, and in the Senate, Vice President JD Vance broke a 51-50 tie. Senate Republicans used the budget reconciliation process, allowing for a simple majority vote and bypassing a filibuster.
Critics argue the bill disproportionately benefits the wealthy, makes deep cuts to health care and nutrition programs like Medicaid and SNAP, and could leave millions uninsured. The Congressional Budget Office estimates it will increase federal deficits by $3.4 trillion over ten years.
Most of the tax cuts are made permanent by the bill, extending provisions from the 2017 Tax Cuts and Jobs Act that were set to expire. However, some specific measures—like deductions for tips and overtime—are scheduled to expire in 2028.