On July 4, 2025, President Donald Trump signed into law the “One Big Beautiful Bill”, a sweeping tax and spending package, during a Fourth of July ceremony at the White House featuring military flyovers and a festive picnic atmosphere.
What the Bill Includes
Tax Policy
Extends Trump-era tax cut provisions permanently, including rates from 2017. Introduces new deductions for tips, overtime, car loan interest, and adds a $6,000 credit for seniors earning under $75,000 annually. Doubles the child tax credit to $2,200
Safety-Net Cuts
Sharp reductions: $1.2 trillion in cuts to Medicaid and SNAP (food stamps), impacting approximately 11–12 million Americans by 2034
Defense & Immigration
Allocates some $150 billion to $170 billion towards border enforcement, mass deportations, and immigration agencies, alongside $157–150 billion in defense spending.
Environmental Rollbacks
Eliminates key clean-energy incentives, including EV credits, in a pivot away from Biden-era climate measures.
Fiscal Impact
CBO projects the bill will add approximately $3.3 trillion to the national debt over the next decade.
Trump’s Rhetoric vs. Critics’ Response
Trump’s Take
He hailed the bill as the “most popular bill ever signed” and a “rocket ship” for the economy, emphasizing its timing as a symbolic Fourth of July milestone. Military flyovers featuring B‑2 bombers highlighted the celebratory tone.
Opposition
Democrats—led by Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries—criticized the bill as a betrayal to working families, contending it shifts wealth upward while undermining critical social services.
Advocacy groups and unions condemned the cuts: AFL‑CIO called it “the worst job‑killing bill in American history”.
Political & Economic Implications
Midterm Consequences:
With unanimous Republican support and zero Democratic votes, the bill is expected to galvanize opposition ahead of the 2026 midterms.
Fiscal Climate:
Nonpartisan analysts warn that breaching the $40 trillion debt barrier could strain economic growth, increase interest rates, and limit federal flexibility.
Policy Shift:
The overhaul marks a pivot away from social welfare and environmental policy in favor of defense, border enforcement, and middle‑class tax relief.
FAQ:
What is the “One Big Beautiful Bill”?
A major July 4 law extending tax cuts, cutting Medicaid/SNAP, and funding defense and immigration enforcement.
Who voted for it?
Passed narrowly in House (218–214) and Senate (51–50) with all Democrats opposed.
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