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RESEARCH REPORT

Trump's 'One Big Beautiful Bill': Everything You Need to Know.

Trump signed 'One Big Beautiful Bill' into law on July 4th
It includes various tax cuts for both individuals and businesses
Large reductions to Medicaid, SNAP, and ACA; millions may lose insurance
Massive funding boost for border enforcement, ICE, and defense
Rolls back clean energy incentives, boosts fossil fuels
Protests and political backlash began immediately after passage

From the Bill Text (H.R.1, 119th Congress)

Permanently extends individual tax rates from the 2017 Tax Cuts and Jobs Act
Raises cap on state and local tax (SALT) deduction to $40,000 for incomes under $500,000 (reverts after 5 years)
Creates temporary tax deductions for tips, overtime, auto loans; expires in 2028
Permanent $200 increase in child tax credit
Imposes 1% tax on remittances, increases tax on investment income from college endowments
Phases out clean energy tax credits from the Inflation Reduction Act
Increases fossil fuel incentives; opens federal land/water for oil and gas drilling
Raises debt ceiling by $5 trillion
Cuts Medicaid and Medicare spending
Expands work requirements for SNAP; shifts some costs to states
$150 billion new defense spending; $150 billion for border enforcement
ICE funding increased from $10 billion to over $100 billion by 2029

Congressional Budget Office (CBO)

Estimated the bill will increase the deficit by $2.8 trillion by 2034
10.9 million Americans projected to lose health insurance coverage
Largest cuts to Medicaid in history
Disproportionate impact on low-income and rural Americans
Cuts to Medicaid and CHIP would reduce enrollment by 10.5 million by 2034

Tax cuts locked in for families and small businesses, promising record take-home pay and permanent relief.

THE WHITE HOUSE
The largest tax cut in history for middle- and working-class Americans.
FOX BUSINESS
The higher limit on SALT gives homeowners in high-tax states like New York, New Jersey and California more breathing room ... It puts more money back in people's pockets.
CBS MONEYWATCH
Millions of taxpayers could see a lower tax bill next year ... Average household savings of about $2,900 in 2026.

Deep Medicaid/SNAP reductions bankroll high-income tax breaks; analysts warn of 11–17 million losing coverage and "largest upward wealth transfer in U.S. history."

THE ATLANTIC
might … carry out the largest upward transfer of wealth in American history.
TEXAS STANDARD
The bill cuts over $1 trillion … from Medicaid over the next decade … CBO estimates 11 million will lose health insurance.
DEMOCRACY NOW!
This is the most massive transfer of wealth upward in American history.
THE GUARDIAN
Trump bill to cause most harm to America's poorest … over $3 tn in tax cuts that disproportionately help the wealthy.
ARIZONA PUBLIC MEDIA / UNIV. OF ARIZONA
This is what some people have referred to as the 'Reverse Robin Hood' … tax benefit to the top 1 % will cost over $1 trillion.

Analysts project massive reductions in clean-energy investments, raising consumer power costs.

MARKETWATCH
Law could reduce new power generation capacity by 340 GW ... raise household energy bills by up to $640 by 2035.
HOUSTON CHRONICLE
Texas could lose out on 77 GW of new capacity ... cost the state 94,000 clean energy jobs by 2035.

Who Benefits Most from the Bill?

A
WHITE HOUSE
The largest percentage tax reduction goes to low-income and working-class Americans...
VS
B
AL JAZEERA, ROLLING STONE
...the bill's tax cuts disproportionately benefit the wealthy, and that the middle class and poor see far smaller gains...

Impact on Medicaid and Health Coverage

A
WHITE HOUSE
There will be no cuts to Medicaid and the bill protects and strengthens Medicaid...
VS
B
H.R.1 BILL TEXT, KFF, ROLLING STONE
...the bill text and independent estimates show a 12% cut to Medicaid, with the Congressional Budget Office projecting over 10 million Americans will lose health insurance.

Economic Impact and Deficit

A
TREASURY DEPARTMENT, WHITE HOUSE
The bill delivers historic levels of mandatory savings and reduces deficits by over $2 trillion...
VS
B
AL JAZEERA, CBO VIA KFF
Multiple analyses, including the CBO, estimate the bill will increase the deficit by $2.8 to $3 trillion...

Immigration Enforcement Funding

A
ICE, WHITE HOUSE
Unprecedented funding for border enforcement is essential for national security...
VS
B
CBS NEWS, GOVERNOR WES MOORE
Critics warn the funding enables mass deportations and could lead to inhumane conditions...

TIMIO's AI can make mistakes. Always verify with original sources.

Timeline

5/22/2025 Congressional Record

House Initial Passage

House passes initial version 215-214

6/16/2025 Senate Finance Committee

Senate Committee Action

Senate Finance Committee releases final text and summary

7/2/2025 House Clerk

House Final Passage

House passes final bill 218-214

7/4/2025 White House

Presidential Signature

Trump signs the bill into law on Independence Day

Cited Sources

Congressional Budget Office

Congressional Budget Office

White House Press Office

White House Press Office

America First Policy Institute

America First Policy Institute

Wall Street Journal

Wall Street Journal

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