Key provisions in Donald Trump's 'Big Beautiful' bill
Image: Saul Loeb/AFP via Getty Images
US Republicans have passed a major legislative package, dubbed the "One Big Beautiful Bill," giving President Donald Trump the biggest legislative victory of his second term.
After weeks of closed-door negotiations over the sprawling text -- and several day-and-night debates -- the House of Representatives narrowly approved a final version of the bill on Thursday after it squeaked through the Senate.
Trump is set to sign the bill into law on Friday, July 4th, Independence Day.
Here are some key provisions in the 869-page text:
Taxes
- Income tax cuts passed under Trump's first term become permanent
- Creates new tax deductions for tips and overtime pay -- a major Trump campaign pledge -- but only through 2028
- Allows businesses to immediately deduct research and development expenses
- Temporarily quadruples a tax deduction for state and local taxes (SALT)
Immigration crackdown
- $46.5 billion for border infrastructure, including wall construction
- $45 billion to create an additional migrant detention facilities with 100,000 beds
- New funds to hire 10,000 Immigration and Customs Enforcement (ICE) officers
- Creates new fines for asylum seekers and migrants caught trying to illegally enter the country
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Clean energy cuts
- Rolls back clean energy tax credits from former president Joe Biden's own marquee spending bill, the Inflation Reduction Act
- Phases out federal subsidies for new wind and solar energy projects if they do not enter service before 2028 or if construction begins more than one year after the bill's enactment
- Ends a $7,500 tax credit for EV purchases after September 30, 2025 -- drawing particular ire from Trump's former top ally, Tesla CEO Elon Musk
- Creates a tax credit for producing metallurgical coal, used largely in steel production
Debt Limit
- Increases nation's borrowing limit by $5 trillion -- a bitter pill for some Republican fiscal hawks
Safety net programs
- Creates new restrictions on welfare for the poor and disabled, particularly the Medicaid health insurance program and SNAP food assistance program
- Requires able-bodied individuals under age 65 and without young children to work at least 80 hours per month to receive Medicaid or SNAP
- Creates $50 billion, five-year fund to support rural hospitals to partially offset larger cuts
Women's health
- Blocks federal funding for one year to Planned Parenthood, a nationwide women's health organization often targeted by Republicans over its abortion services
Other provisions
- Creates savings accounts for newborns with $1,000 deposits, dubbed "Trump Accounts"
- Trump's "Golden Dome" missile defense initiative gets $25 billion
- Space programs get a boost, with $10 billion benefiting the mission to Mars and $325 million to decommission the International Space Station
- Creates a new tax on endowments of wealthy universities
AFP
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