4 July 2025: The Republicans on Thursday delivered a massive legislation bill to President Donald Trump just in time for Independence Day after they pushed his ‘big beautiful’ bill through Congress. The President will sign the bill in a ceremony on July 4.
The nearly 900-page legislation includes tax breaks, spending cuts, and other Republican priorities, including new money for national defence and deportations.
The Senate passed the bill, with Vice President JD Vance casting the tiebreaking vote. The House passed an earlier iteration of the bill in May with just one vote to spare. It passed the final version 218-214.
What’s in Trump’s ‘Big Beautiful’ Bill?
$4.5 trillion in tax cuts
The bill is crucial as it contains about $4.5 trillion in tax cuts. It would boost the $2,000 child tax credit to $2,200. Millions of families at lower income levels would not get the full credit.
It would temporarily add new tax deductions on tips, overtime and auto loans. There’s also a $6,000 deduction for older adults who earn no more than $75,000 a year, a nod to his pledge to end taxes on Social Security benefits.
Clean energy policies
The final version of the ‘Big Beautiful’ bill passed by the Senate would roll back many of the clean energy tax breaks, which were introduced in the 2022 Inflation Reduction Act.
Under this, the incentives for consumers who purchase electric vehicles, install home charging stations, or make energy-efficient upgrades like better insulation or heating and cooling systems will be eliminated.
The legislation also shuts down the Greenhouse Gas Reduction Fund, a program that provides funding to nonprofits to finance projects aimed at cutting pollution and greenhouse gas emissions in local communities.
Billions for border crackdown and defence
The bill devotes an estimated $350 billion to immigration and national security efforts, making good on Trump’s pledge to carry out the “largest mass deportation operation in American history.”
It funds 100,000 immigration detention beds, adds 10,000 new ICE officers with $10,000 signing bonuses, and sharply increases Border Patrol staffing. The bill also introduces new fees for immigrants seeking asylum or legal status.
The Pentagon would receive billions more for shipbuilding and munitions, along with $25 billion earmarked for the “Golden Dome” missile defence system under the bill. Another $1 billion would go specifically to border-related operations by the Defence Department.
Medicaid curbs
A provision added to the bill at the final hours will provide $10 billion annually to rural hospitals for five years, or $50 billion in total. Senate Republicans proposed steeper cuts to Medicaid funding, in part by incrementally lowering provider taxes from 6% to 3.5% by 2032.
One provision bars for one year Medicaid payments to family planning providers that provide abortions, namely Planned Parenthood.
The bill also imposes work requirements for some able-bodied adults and more frequent eligibility checks. The Congressional Budget Office estimates that the bill would result in 11.8 million Americans losing health coverage under Medicaid over the next decade.
Summary:
Trump’s sweeping bill clears Congress, featuring permanent tax cuts, border funding, defense boosts, social program cuts, and a projected $3 trillion increase in the national deficit.