Explained: What Is Inside Trump's ‘Big Beautiful Bill' And Why It Is Sparking So Much Heat
Here's a breakdown of what the bill actually does and why it is causing so much uproar.
At the centre of the bill lies Trump's push to extend the 2017 tax cuts. Those cuts were due to expire in 2025. This bill makes most of them permanent.
High earners stand to benefit the most. Wealthier families would keep their deductions and lower tax rates. A few new benefits are added too such as deductions on tips, car loan interest (if the car is made in the US) and overtime pay.
One major change – the state and local tax (SALT) deduction cap would rise from $10,000 to $40,000 but only for five years.
Estimated cost of all tax breaks – $4.5 trillion over a decade.
Without the bill, the current child tax credit – $2,000 per child – would fall to $1,000 by 2026.
With the bill, the credit increases to $2,200 per child. It is not a dramatic jump, but a politically safe one.
The bill pushes $350 billion toward national security and border enforcement. That includes $46 billion for Trump's Mexico border wall, $45 billion for migrant detention beds and billions more to hire 10,000 new ICE agents. This part of the bill closely mirrors Trump's immigration crackdown promises.
To help fund tax breaks and defense spending, the bill slashes safety net programmes.
That includes Medicaid and SNAP (food aid). Republicans say the goal is to 'refocus' these programmes on the most vulnerable – children, pregnant women and disabled citizens.
But the Congressional Budget Office says around 11.8 million Americans could lose health coverage if the bill becomes law.
The bill guts tax credits for solar, wind and electric vehicles. A tax break for electric car buyers would end this year, not 2032, as current law allows.
This rollback hits the core of former President Joe Biden's climate policy, especially his Inflation Reduction Act.
The U.S. debt already stands at $36.2 trillion. Trump's bill adds another $3.3 trillion over 10 years and raises the debt ceiling by $5 trillion – higher than what the House had approved earlier.
According to Yale's Budget Lab, top earners gain 2.2% in income and lowest earners lose 2.5%, mainly from cuts to food and healthcare support.
Wealthier Americans keep more money. Low-income families may face new struggles.
Senate passed it with 51-50 votes. Every Democrat opposed the bill. Vice President JD Vance cast the deciding vote. Republican support was shaky but held after last-minute amendments.
The bill now goes to the House. If the House changes anything, the Senate will have to vote again. Both chambers must agree on a final version before Trump can sign it into law.
He is hoping to do that by July 4, but even he admitted, 'It is going to be hard.'
Trump's 'Big Beautiful Bill' is huge in size and impact. It brings major tax relief to some, while pulling back on healthcare and aid for others. It fuels defense and border spending, but balloons national debt. And it could redefine America's budget if it survives the House.
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