Former President Donald Trump’s new legislative centerpiece, the One Big Beautiful Bill Act (or OBBBA), has landed in the House with a political thud. This sweeping proposal, hailed by Trump as the “most beautiful legislation ever written,” bundles together deep tax cuts, steep spending slashes, and an immigration crackdown that could reshape the country’s fiscal and social landscape. And it has both parties on edge.
This bill is more than just controversial. It could explode bipartisan cooperation in the House just days before Congress breaks for the July 4 recess. Here’s what you need to know.
Inside Trump’s New “Big, Beautiful Bill”
| Policy Area | Major Change | Estimated Impact |
|---|---|---|
| Tax Cuts | Extends Trump-era cuts; raises child tax credit | Adds ~$1.6T to deficit |
| Medicaid & SNAP | Over $1T in Medicaid cuts, stricter SNAP eligibility | 17M+ could lose coverage |
| Immigration | $100B+ for ICE, wall, deportation centers | Largest enforcement budget in U.S. history |
Having covered federal budgets for over a decade, I’ve rarely seen a bill this ambitious and this politically risky. It’s a Frankenstein mix of populism, fiscal recklessness, and culture war ammo—and it might just become law. If it does, expect a legislative, legal, and electoral earthquake.
What’s Inside the OBBBA
Massive Tax Cuts and Credits
The bill locks in the 2017 Tax Cuts and Jobs Act, permanently extending individual rate reductions. It boosts the child tax credit to $2,500 annually (until 2028, when it drops to $2,000), and adds “Trump Accounts” to help families save for kids.
Tips and overtime income would become tax-free. The state and local tax (SALT) cap rises from $10,000 to $30,000 or even $40,000 depending on filing status.
Gutting Medicaid and Welfare
Perhaps the most divisive move: over $1 trillion in Medicaid cuts over 10 years. The plan reinstates work requirements, shortens coverage windows, and imposes new bureaucratic checks. The nonpartisan CBO projects that more than 17 million Americans could lose health coverage.
The SNAP food aid program would also shrink, with costs shifted to states and eligibility requirements tightened. Critics say these provisions risk reversing gains in food security since the pandemic.
Immigration Crackdown
The bill pours over $100 billion into immigration enforcement through 2030. This includes:
- New wall construction and surveillance infrastructure
- A $100 asylum application fee
- Expanded ICE detention and deportation programs
Civil rights groups call it one of the most aggressive immigration plans in decades.
Defense Spending and Energy Cuts
The Pentagon gets a $150 billion boost, mostly for missile defense and drone warfare tech. Meanwhile, clean energy subsidies enacted under Biden would be rolled back, triggering backlash from environmentalists and some green-business leaders.
Other Nuggets
A few less-publicized pieces:
- Raises taxes on elite university endowments
- Allows the IRS to revoke nonprofit status from orgs alleged to support terrorism (no conviction required)
Why the House Is Melting Down
Factions Collide
The House GOP is split. Moderates from purple districts oppose Medicaid cuts, warning of electoral suicide in 2026. Meanwhile, fiscal hawks like Rep. Thomas Massie argue the bill adds too much to the deficit and isn’t conservative enough.
Debt Concerns
The bill adds over $3.3 trillion to the national debt, pushing U.S. debt past 130% of GDP by 2035. Even Republicans are balking. “We can’t pass on a collapsed economy to our kids,” one anonymous GOP lawmaker told the Washington Post.
Speaker Johnson Under Fire
House Speaker Mike Johnson is racing to line up votes. Trump insists the bill must pass before July 4, raising tension inside the GOP caucus.
What Happens If It Passes?
If the OBBBA clears the House and Senate by Trump’s July 4 deadline:
- It goes to the White House for signature
- Lawsuits over Medicaid and asylum rules begin immediately
- Democrats weaponize the bill in 2026 campaign ads
