Trump Signs 'Big, Beautiful Bill' Into Law. What's Inside
US President Donald Trump signed into law his 'One Big Beautiful Bill' at the White House on Friday, "keeping" his campaign promises of extending tax cuts from his first term, boosting military spending and providing massive new funding for his massive migrant deportation drive.
"America is winning, winning, winning like never before," he said at the event, which was held on the Fourth of July holiday marking America's 249th birthday.
"I've never seen people so happy in our country because of that, because so many different groups of people are being taken care of: the military, civilians of all types, jobs of all types," he said.
"Promises made, promises kept, and we've kept them," Mr Trump, who returned to power in January, added.
He also thanked House Speaker Mike Johnson and Senate Majority Leader John Thune for leading the nearly 900-page bill through the two houses of Congress
What's Inside Trump's 'One Big, Beautiful Bill'
Reductions for businesses, new tax breaks
Republicans said the 'One Big, Beautiful Bill' is crucial because there would be a massive tax increase after December when tax breaks from Donald Trump's first term expire. The legislation contains about $4.5 trillion in tax cuts. The existing tax rates and brackets would become permanent under the bill, solidifying the tax cuts approved in Trump's first term.
It would also temporarily add new tax deductions on tip, overtime and auto loans.
There's also a deduction of $6,000 for older adults who earn no more than $75,000 a year.
It would also increase the $2,000 child tax credit to $2,200. Millions of families at lower income levels would not get the full credit.
A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years.
It will also allow businesses to immediately write off 100% of the cost of equipment and research.
The wealthiest households would reportedly see a $12,000 increase from the legislation, and the bill would cost the poorest people $1,600 a year, mainly due to reductions in Medicaid and food aid.
Border wall, deportation funds
The bill would provide some $350 billion for Donald Trump's border and national security agenda, including the US-Mexico border wall and 1,00,000 migrant detention facility beds.
The 79-year-old Republican has repeatedly vowed to deport 'illegal aliens'.
The bill has also granted funds for hiring 10,000 new Immigration and Customs Enforcement (ICE) officers, with $10,000 signing bonuses and a surge of Border Patrol officers.
Mr Trump's goal is to deport some 1 million people every year. To help pay for it, immigrants would face various new fees, including when seeking asylum protections.
For the Pentagon, the bill would provide billions for shipbuilding, munitions systems, and quality of life measures for servicemen and women.
The Defence Department would get $1 billion for border security.
Funds for Golden Dome missile system
The bill will also provide $25 billion for the development of Donald Trump's "Golden Dome" missile defence system.
Mr Trump had said in May that it would eventually cost around $175 billion and would be operational by the end of his term in 2029.
The US President has vowed to construct the 'Golden Dome' system, similar to Israel's famed Iron Dome.
Medicaid sees deep cuts
To help partly offset the lost tax revenue and new spending, Republicans aim to cut back on Medicaid and food assistance for people below the poverty line. They have said they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse.
The bill includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older people up to age 65. Parents of children 14 and older would have to meet the program's work requirements.
There's also a proposed new $35 co-payment that can be charged to patients using Medicaid services.
More than 71 million people rely on Medicaid, while 40 million use the Supplemental Nutrition Assistance Program (SNAP).
Clean energy tax credits slashed
Tax breaks designed to boost clean energy projects fueled by renewable sources like energy and wind will also be rolled back.
The tax breaks were a central component of former US President Joe Biden's 2022 bill focused on addressing climate change and lowering health care costs.
A tax break for people who buy new or used electric vehicles would expire on September 30 of this year, instead of at the end of 2032 under current law.
'Trump Accounts'
The bill creates a new children's savings program, called 'Trump Accounts', with a potential $1,000 deposit from the Treasury.
There's a new excise tax on university endowments and a new tax on remittances or transfers of money that people in the US send abroad. The tax is equal to 1% of the transfer.
A $200 tax on gun silencers and short-barreled rifles and shotguns was eliminated.
One provision bars for one year of Medicaid payments to family planning providers that provide abortions, namely Planned Parenthood.
Billions have been granted for the Artemis moon mission and for the exploration of Mars.
$88 million has been assigned to a pandemic response accountability committee.
It also has a provision to increase the nation's debt limit by $5 trillion to allow continued borrowing to pay already accrued bills.
The bill also stripped out a new tax on wind and solar projects that use a certain percentage of components from China.
According to the Congressional Budget Office, the bill would increase federal deficits over the next 10 years by nearly $3.3 trillion from 2025 to 2034.
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