Trump's 'big, beautiful' bill unveiled: Tax cuts, mass deportations, child credit and more
The tax and spending bill is projected to cost more than $3 trillion during that time, but would be partially paid for with about $1 trillion in cuts to Medicaid. Almost 12 million lower-income Americans would lose their health insurance by 2034, according to the Congressional Budget Office.
Trump's megabill renews the tax cuts Trump signed into law in his first term and pays for them in part with steep cuts to Medicaid, food aid programs and clean energy funding.
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Trump's 'big, beautiful' bill could leave 12 million without healthcare and America drowning in debt
Key features of Trump's 'big, beautiful bill'
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Extend big tax cuts:
At the center of the bill is an extension to President Trump's 2017 Tax Cuts and Jobs Act, slated to sunset at year's end, seeking to make the cuts permanent in what has been a key priority for Senate Republicans. When Trump took office in 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers. These provisions are set to expire this year but the big, beautiful bill makes them permanent. It increases the standard deduction by $1,000 for individuals, $1,500 for heads of households and $2,000 for married couples, albeit only through 2028, reported The Guardian.
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No tax on tips, overtime and car loans:
The bill would exempt tips and overtime pay from federal income taxes, fulfilling two of Trump's campaign promises. It would also allow taxpayers to deduct up to $10,000 of auto loan interest for U.S.-made vehicles. The bill also features a temporary tax break of $6,000 for seniors that phases down as income increases. Moreover, people who are above the age of 65 are eligible for an additional deduction of $6,000, provided their adjusted gross income does not exceed $75,000 for single filers or $150,000 for couples. But all of these incentives expire at the end of 2028, right before Trump's term as president ends.
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Child tax credit
: The current $2,000 child tax credit is set to return to the pre-2017 level of $1,000 in 2026. The tax credit would permanently increase to $2,200 under the Senate bill, $300 less than the House-passed hike. The House version reverts the increase to $2,000 after 2028, according to CBS News.
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State and local tax relief (Salt):
The bill includes an increase to the cap on the state and local tax deduction, raising it from $10,000 to $40,000. After five years, it would return to $10,000, a departure from the House-passed bill. The Senate's version keeps the $40,000 cap, but only through 2028.
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Elon Musk to be deported? Trump's bold warning raises explosive questions about Tesla CEO's future
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Cut to food aids and Medicaid:
Trump's 'big, beautiful bill' would slash two major federal safety net programs: Medicaid, which provides healthcare to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap), which helps people afford groceries. It would reduce Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, by around 20%. As per estimates, Medicaid changes could cost as many as 10.6 million people their healthcare, and about eight million people, or one in five recipients, their Snap benefits.
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More focus on mass deportation:
President Trump has asked for more money to expand immigration enforcement. The bill would fund new sections of border wall, increase surveillance, and build more detention facilities. As part of Trump's plan to remove undocumented immigrants from the country, Immigration and Customs Enforcement (Ice) will receive $45bn for detention facilities, $14bn for deportation operations and billions of dollars more to hire an additional 10,000 new agents by 2029, according to The Guardian. Also, more than $50 billion will be earmarked for the construction of new border fortifications, which will probably include a wall along the border with Mexico.
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Cuts to green energy:
Subsidies and tax breaks for clean energy projects, including solar panels, wind farms, heat pumps, and electric vehicles, would be rolled back. The bill even proposes a new tax on clean energy projects. Federal incentives for cleaner cars and energy-efficient home upgrades are set to expire by the end of this year. At the same time, wind and solar power projects will face a new excise tax. According to the American Clean Power Association, this tax could raise consumer electricity bills by 8% to 10% and cost businesses between $4 billion and $7 billion by 2036.
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Student loan relief scaled back:
The bill proposes major changes to Pell Grant eligibility and student loan access, threatening to lock thousands out of higher education entirely. The proposal would remove some student loan repayment options and limit the government's ability to offer debt relief. Critics say it would cause more defaults and keep people in debt for longer, according to reports.
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Trump accounts:
A lesser-known provision in the bill proposes the creation of $1,000 government-funded savings accounts for newborns, dubbed 'Trump accounts.' The bill also allocates funding for air traffic control, the Secret Service, and preparations for America's 250th anniversary celebrations in 2026.
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Trump's Golden Dome:
The bill includes more funding for shipbuilding, weapons, and Trump's 'Golden Dome' missile defence system. For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security.
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First Post
16 minutes ago
- First Post
Lunch at White House, hunger at home: Asim Munir's NY trip show what's wrong with Pakistan
When the US establishment engages directly with the Pakistan Army chief while bypassing its elected leadership, it proves that the country's democracy is nothing more than a decorative formality read more In a diplomatic spectacle that could only be described as 'deliciously ironic', Field Marshal Asim Munir, Pakistan's Army Chief, was invited to the White House for a tête-à-tête with President Trump. A prime example of irony, this meeting arrived at a time when the very foundations of civilian authority in Pakistan were under siege. A prime minister who can barely finish a term, and a military leader who holds more sway than any elected official. It is a display so spectacular that even the most cynical observer would be tempted to applaud the audacity. STORY CONTINUES BELOW THIS AD But this wasn't just a polite exchange of pleasantries; it was a statement. The optics were impeccable, two powerful men sharing a meal while the rest of the world watched, wondering if they were discussing strategy or simply reminiscing about the good old days of military coups. The message was clear: the US wasn't just engaging with Pakistan, it was engaging with the Pakistani military as its de facto representative. A military that doesn't just play a supporting role in Pakistan's governance, but increasingly becomes the lead actor. This was not Pakistan being celebrated in Washington; it was the Pakistani military being reinforced as the permanent sovereign. A state of affairs where civilian leadership is increasingly sidelined in favour of military power. A true diplomatic win? Hardly. More of a political indictment of a system that can't seem to find a way to empower its people through democratic institutions. The Disappearing State: When Civilians Are Optional The absence of Pakistan's Prime Minister and Foreign Minister from this historic meeting wasn't just a diplomatic faux pas; it was a glaring testament to the sidelining of civilian authority. The message was loud and clear: Pakistan's real leader is in uniform, not in a suit. This isn't just about who gets to share the spotlight in Washington. It's about who gets to make the decisions at home. The concept of the 'disappearing state' is rooted in the idea that state visits used to reflect a sovereign hierarchy, where heads of state would meet heads of state. But in Pakistan's case, that chain of command has been brutally ruptured. When the US military or political establishment engages directly with Pakistan's army chief while bypassing its elected leadership, it doesn't just reflect a diplomatic trend; it exacerbates the perception that Pakistan's democracy is nothing more than a decorative formality. The US engagement with General Munir further highlights this, reinforcing the message that military-led governance is acceptable, even preferable, to civilian-led democracy. STORY CONTINUES BELOW THIS AD For a country already plagued by a fractured political class, co-opted, humiliated, and frequently sidelined, the result is nothing short of disastrous. Every time a foreign power, particularly the United States, plays along with this narrative, it chips away at the legitimacy of Pakistan's civilian institutions. What's worse, this serves to further marginalise the political class, transforming elected officials into mere figureheads, ornamental but without any real power. This is not just a diplomatic faux pas; it's a death by a thousand photo ops. The Illusion of Strength: Posturing in a Global Theatre While General Munir's invitation to Washington may appear to project strength to domestic audiences in Pakistan, this is a brittle, borrowed form of strength. It's the kind of strength that only appears powerful from a distance. The paradox is unsettling: the more powerful Pakistan's military seems at home, the more dependent it becomes abroad. Far from promoting strategic autonomy, this is strategic theatre, a show designed to distract from the reality of Pakistan's political and economic dependence on foreign powers. STORY CONTINUES BELOW THIS AD American engagement with Pakistan's military has historically been less about partnership and more about utility. Whether during the Cold War, the War on Terror, or in the current climate of strategic alliances in the region, the pattern has been unmistakable: when the US needs something, be it military bases, transit routes, or leverage over Afghanistan, it reaches out to Rawalpindi, not Islamabad. This has always been a transactional relationship, not one based on mutual interests or respect. General Munir's visit to Washington follows this exact script. It's a carefully choreographed engagement designed to serve the interests of both parties, but primarily those of the US. What's worse, every such engagement further entraps Pakistan in a cycle of conditional aid, military-to-military cooperation, and silent compliance. As long as Pakistan's military establishment remains the face of the state, it becomes easier for foreign powers to treat Pakistan not as a multifaceted democracy but as a monolithic security apparatus. And in this regard, the US is complicit, not just in supporting Pakistan's military dominance, but in ensuring that civilian power remains an afterthought. STORY CONTINUES BELOW THIS AD The Timing of the Lunch and Shared Dessert General Munir's invitation to the White House raised questions about its true intent. While President Trump framed the meeting as a thank-you for preventing a nuclear crisis between India and Pakistan, the timing and context suggested deeper motives. The meeting came at a time of rising tensions with Iran, underscoring Munir's growing influence in Pakistan's power politics. The lunch symbolised a diplomatic gesture that excluded Pakistan's elected leaders, reinforcing the military's dominance in foreign policy. While Munir met with Trump, Pakistan rejected Iran's request for support during its attacks, a move that aligned with Israel's interests. US officials made it clear that no support would come from the broader Islamic world, isolating Iran. Trump's praise of Munir's insight into Iran further highlighted the military's central role, as the civilian government was sidelined. Additionally, Munir's reported attendance at an American Israel Public Affairs Committee (AIPAC) meeting fuelled concerns over Pakistan's increasing alignment with US and Israeli interests. STORY CONTINUES BELOW THIS AD This meeting reflected a return to Cold War-era dynamics between the US and Pakistan. Pakistan reportedly offered rare earth materials and potential crypto council partnerships, benefiting both nations. For Pakistan, it was a way to shift from China to the US, while Trump secured vital resources. However, this deal reinforced the transactional nature of US-Pakistan relations, with the military continuing to dominate foreign policy, sidelining civilian institutions. India Watches, Unbothered! The entire spectacle of General Munir's visit and the subsequent media frenzy in Pakistan might lead some within Pakistan's strategic circles to believe that this is a victory in the ongoing geopolitical rivalry with India. After all, when Pakistan's army chief is feted by the world's most powerful nation, surely it must be a step toward restoring the balance of power, right? Wrong. The truth is far less flattering. From India's perspective, the situation is a source of reassurance rather than concern. India's strategic calculus regarding Pakistan has always been shaped by one key observation: Pakistan's military dominance is its Achilles' Heel. Pakistan's inability to fully embrace civilian rule and forge a truly democratic identity has been a point of pride for India's strategic thinkers for decades. General Munir's trip to Washington only confirms what India has long suspected, that Pakistan is still a security state masquerading as a democracy. And as long as the US continues to treat Pakistan as such, India's concerns about its geopolitical standing are minimal. STORY CONTINUES BELOW THIS AD This isn't just about who gets invited to Washington; it's about the deeper dynamics of regional power. While the US-Pakistan military relationship may serve specific American interests, it doesn't fundamentally alter the trajectory of the Pakistan-India rivalry. Instead, it highlights the deepening chasm between Pakistan's civilian institutions and its military-dominated reality. As far as India is concerned, Pakistan's internal dysfunction is less a threat and more a confirmation of its own stability and growing influence in the region. What's Lost in the Optics? The optics of General Munir's luncheon in Washington are not what they seem. While the Pakistani military may read this as an endorsement, a validation of its central role in the state, the deeper reality is far more cynical. The US is not empowering Pakistan's military to make it stronger; it's engaging with it to keep it compliant. The handshake at the White House is not about strengthening Pakistan's sovereignty; it's about ensuring Pakistan doesn't stray too far from the US's strategic orbit. STORY CONTINUES BELOW THIS AD By endorsing the military as the primary interlocutor, Washington effectively sidesteps the messy, unpredictable nature of democratic governance. Elections, public dissent, and popular opinion all complicate diplomatic engagement. But by dealing exclusively with the military, the US gets the kind of stability it craves, centralised power that can be easily influenced. The military becomes the puppet, and the US pulls the strings. This dynamic is particularly dangerous because it consolidates Pakistan's place in a cycle of military dominance, foreign dependency, and institutional decay. Pakistan's sovereignty is sacrificed on the altar of strategic convenience, and the long-term health of its democratic institutions is jeopardised in the process. What does this mean for Pakistan's Future? Every state must choose the architecture of its legitimacy, and in Pakistan, that choice has been made again and again: uniforms over ballots. But this form of legitimacy is inherently unstable. Legitimacy built on coercion and foreign validation is always temporary. It erodes slowly, until it collapses suddenly. General Munir's lunch at the White House may satisfy egos and silence critics for a few news cycles, but its strategic cost is enormous. It does nothing to address the underlying tensions between Pakistan's military and its civilian institutions. Instead, it institutionalises the military's role as the face of the nation, an institution that is increasingly less accountable to the people it purports to represent. This is not just a short-term setback for Pakistan's democratic prospects. It is a long-term erosion of the democratic norms that Pakistan once aspired to. And unless something changes, the future of Pakistan looks increasingly like a military-led state, where the voices of its people are drowned out by the noise of military parades and diplomatic dinners. Conclusion: A Meal Served Cold General Munir's luncheon at the White House was more than just a diplomatic event. It was a symbol of Pakistan's ongoing struggle between military dominance and democratic governance. While the world watched, the real question remained: who truly holds the reins of power in Pakistan? The military, cloaked in ceremonial grandeur, seems to be making a play for the throne, one handshake at a time. Until that question is answered, the nation risks remaining a republic in name only. A republic that, like the lunch served at the White House, has grown cold, stale, and increasingly irrelevant to the needs of the people it was designed to serve. Chitra Saini holds a PhD from the School of International Studies, Jawaharlal Nehru University and currently serves as an Assistant Professor (Guest) at the Delhi College of Arts and Commerce, University of Delhi. Amit Kumar is a Senior Research Fellow at the Birla Institute of Technology and Science, Pilani, Rajasthan, India. The views expressed in the above piece are personal and solely those of the authors. They do not necessarily reflect Firstpost's views.
Time of India
22 minutes ago
- Time of India
Bihar CM announces cash incentives for youth up to Rs 6,000 ahead of crucial state polls; Check details
Ahead of crucial state elections, Bihar Chief Minister Nitish Kumar announced cash incentives for the youth, with Class 12th getting Rs 4000, ITI or diploma holders will be given Rs 5000, and graduates or postgraduates undertaking internships will be given a monthly amount of Rs 6000. Additionally, one lakh youth from the state will be provided internships in various institutions from 2025-26 to 2030-31. "I am pleased to inform that under the 7 Nischay-2 initiative , the Cabinet has approved and sanctioned funds for the implementation of the 'Chief Minister-Promotion of Readiness, Awareness and Technical Insights for Guiding Youth Advancement' scheme to provide Bihar's youth with advanced skills, better employability, leadership development, strong networking, and new opportunities for career enhancement. This scheme will prove useful for the youth in shaping their future. Under this scheme, trained youth who have passed the 12th Class will be given Rs 4000, ITI or diploma holders will be given Rs 5000, and graduates or postgraduates undertaking internships will be given a monthly amount of Rs 6000. One lakh youth from the state will be provided internships in various institutions from 2025-26 to 2030-31," said Nitish Kumar. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo
Time of India
23 minutes ago
- Time of India
Trump voters in for a shock as $800 billion Medicaid cuts hit home in MAGA stronghold
Teresa McNab, a Trump voter from Knox County, Kentucky, came home after dropping her daughter at school and found her husband Jackie having a seizure on the floor. Jackie, who had blood clots, died despite Teresa trying to save him before the ambulance arrived. He was only 45. Teresa and her daughter had to sell lemonade to raise money for his burial and gravestone. One small relief was that Medicaid paid Jackie's hospital bills. Teresa's story shows how important Medicaid is for poor families in rural areas like Knox County. But now that support is under threat due to Trump's plan to cut up to $800 billion from Medicaid, as stated by Telegraph report. Big Medicaid cuts may hurt Trump's own voters Trump wants the cuts to help fund $3.7 trillion in tax cuts, and is pushing lawmakers to pass it by July 4. These cuts would make 16 million people lose health insurance by 2034, according to the Congressional Budget Office (CBO). Even though Republicans say the bill will help household income, there's fear it will mostly hurt the poor people who actually voted for Trump. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Click Here Out of the 200 countries that depend most on Medicaid, 84% voted for Trump in 2024. Knox County, where 72% voted for Trump, is one of the poorest places in the U.S. and 68% of people use public health insurance. These numbers show how risky this move could be for Trump politically, as mentioned in the report by Telegraph. Trump's former chief strategist Steve Bannon warned the bill might fail because 'MAGA is on Medicaid.' Pollster Frank Luntz says hardcore Trump fans will still support him even if they lose benefits. But Luntz also said working-class voters may turn against Trump if the cuts hurt them directly. Medicaid started in 1965 to help low-income people with healthcare. Live Events Medicare is for people over 65 and fully funded by the federal government. Medicaid is for low-income people and funded by both states and the federal government. Before Obama's Affordable Care Act (ACA) in 2010, adults without kids were mostly not eligible for Medicaid, as per the report by Telegraph. The ACA let more low-income adults qualify, dropping the number of uninsured Americans from 44 million to 25 million. Trump's bill could undo those gains by cutting $793 billion from Medicaid over 10 years. Kentucky could lose $21 billion in federal funding and 277,000 people may lose coverage, says research group KFF. ALSO READ: Musk escalates feud with Trump, throws support behind nemesis Thomas Massie for his re-election New work rules and paperwork may make people lose coverage A big change in the bill is a new requirement to work 80 hours a month to keep Medicaid under ACA rules, saving $344 billion. The bill also saves $64 billion by making people re-check their eligibility every 6 months instead of once a year. Darren Bullock, a Trump voter who left the Democrats, might lose his Medicaid because of the new work rules, as mentioned by the report by Telegraph. Darren says jobs are hard to get in rural areas like Knox County, especially since he has no car, phone, or public transport access. Jennifer Tolbert from KFF warns that people aged 55–64, who often retired early from tough jobs, are most at risk. She says even people who do work might lose Medicaid just because they can't keep up with the extra paperwork. Teresa McNab, who now works as a full-time cook, says she can meet the work hours but has no time to do the paperwork due to caring for her daughter and elderly mom. Medicaid is also key to drug rehab programs in Kentucky, especially with the region's opioid crisis. Chris Ross, a former drug addict, says Medicaid paid for his treatment and helped him turn his life around. He now has a job, is married, and got custody of his kids, all thanks to Medicaid support. Daniel Phipps, who runs a rehab group, says most of his patients are on Medicaid, and cuts could harm these services badly, as stated by Telegraph. While the Republican bill exempts people in rehab from work rules, they might still lose coverage if they can't meet reporting demands. Tolbert adds that local hospitals in poor areas will lose money and may cut back staff or services as more people go uninsured. Politically, this could hit Trump hard in countries like Knox, where people strongly vote Republican but rely heavily on Medicaid. Chris Ross said people can't just ignore such big threats to their survival — even if they're loyal Trump voters, according to the report by Telegraph. FAQs Q1. What is Trump's plan for Medicaid? Trump wants to cut up to $800 billion from Medicaid to help pay for tax cuts. This may cause millions of people to lose their health insurance. Q2. Who will be most affected by these Medicaid cuts? Low-income families, especially in rural places like Knox County, Kentucky, where many people voted for Trump, could lose coverage or face harder rules.
