In a major legislative win for US President Donald Trump, Republicans have pushed through his nearly 900-page 'Big, Beautiful Bill' just ahead of the Independence Day on July 14.
The bill, which includes $4.5 trillion in tax cuts, sharp spending shifts, and significant changes to US immigration, defence, and climate policy, was passed by the Senate on Thursday, July 3, with Vice President JD Vance casting the tie-breaking vote. The House had narrowly cleared the bill 219-214 earlier. Trump is now expected to sign it in an official ceremony on Friday, July 4.
Here's what's inside Trump's 'Big, Beautiful Bill':
Deep Tax Cuts, But Not for All
The bill’s centrepiece is a massive tax relief plan worth $4.5 trillion. It raises the child tax credit from $2,000 to $2,200, although millions of low-income families are likely to receive only partial benefits. Older adults earning under $75,000 annually will be eligible for a new $6,000 deduction, which Trump has pitched as a step toward ending taxes on Social Security benefits.
Temporary deductions on tips, overtime and auto loans have also been introduced, reflecting Trump's populist pitch.
Rollback on Climate Policy
In a pivot from the Biden-era climate agenda, Trump's Bill has reversed several clean energy incentives introduced in the 2022 Inflation Reduction Act. In addition, rebates and credits for electric vehicles, home insulation, and other energy-efficient upgrades will be scrapped. The legislation also shutters the Greenhouse Gas Reduction Fund, a key funding source for pollution-cutting community projects.
Meanwhile, the bill earmarks #350 billion for immigration enforcement and defence. It also sets aside funds for 1,00,000 immigration detention beds, 10,000 new ICE officers, each promised a $10,000 bonus and a dramatic expansion of Border Patrol operations. trump's promise of the “largest mass deportation operation in American history” is also baked into the budget.
Defence spending also rises, with $25 billion allocated to the Golden Dome missile defence system and an additional $1 billion for military border operations.
Medicaid Cuts and Family Planning Restrictions
A last-minute addition provides $10 billion annually for rural hospitals over five years. But Republicans have pushed through steep Medicaid curbs, including work requirements and reduced provider taxes, changes that the CBO estimates could strip nearly 12 million Americans of coverage over the next decade.
A one-year ban on Medicaid payments to abortion-linked providers like Planned Parenthood is also included in the bill.
