President Donald Trump of the United States signed his “One Big Beautiful Bill” into law at the White House on Friday, “keeping” his campaign promises to increase military spending, extend tax cuts from his first term, and provide a significant amount of new funding for his massive efforts to deport migrants. “America is winning, winning, winning like never before,” he said during the celebration of July 4 holiday, which commemorates the country’s 249th independence.
Donald Trump Signs ‘One Big Beautiful Bill’ into Law
Earlier this week, Republicans pushed an extensive tax and spending bill through Congress, which US President Donald Trump signed into law, hitting his time-frame to enact it by July 4. The new law, which is almost 900 pages long, combines budget cuts, tax cuts, and other important Republican goals, including more money for immigration and the military.
When tax benefits from Donald Trump’s first term expire in December, Republicans say the ‘One Big, Beautiful Bill’ is essential since it would result in a significant tax rise. The tax savings in the law total around $4.5 trillion. Under the law, the tax cuts that were passed during Trump’s first term would be permanently maintained at the current tax rates and levels.
What is in the law?
It was signed into law by President on July 4, 2025, U.S. Independence Day and it includes significant tax cuts, changes to social security program eligibility, and the elimination of funding incentives for sustainable energy generation, was approved by the House of Representatives the day before.
Yesterday’s signing ceremony at the White House clashed with Washington, DC’s Independence Day celebrations. “This is the greatest tax reduction, the largest expenditure cut, and the largest border security investment in American history,” Mr. Trump said in remarks marking the event. During the event, fighter planes and stealth bombers similar to those involved in the recent US raids on Iranian nuclear facilities flew above.
Here are top changes via ‘Big Beautiful Bill’:
- Medicaid: Key benefits including Medicaid, ACA health insurance subsidies, SNAP, and student aid may become unavailable to you if your income drops below $58,000. For those making less than $20,000, this might result in a loss of up to $885, or 5.4% of their income. A loss of up to $1,090, or 2.3% of income, may result for persons making between $20,000 and $58,000. The Penn Wharton Budget model estimates that those making between $58,000 and $105,000 may see a loss of up to $45 or 0.1% of their income.
- SNAP cuts: Along with to the previous limits, work requirements would now apply to people between the ages of 55 and 64. A 2023 plan of this kind may have resulted in 3 to 3.5 million individuals being cut from the program, according to the Congressional Budget Office. Food aid programs would now need to be partially funded by the states, which would relieve some of the financial strain on the federal government.
- SALT: Starting in 2025, taxpayers will be able to write off up to $40,000 instead of the previous $10,000 limits on the state and local tax (SALT) deduction thanks to the measure. This increased cap, which will rise by 1% yearly to reflect inflation, is applicable to anyone with salaries up to $500,000. The limit is expected to return to $10,000 in 2029, though. Over time, these revisions are expected to cost $325 billion, including adjustments to the alternative minimum tax (AMT).
- Car loan interest: If a car is manufactured in the United States, the law will allow automobile owners to deduct up to $10,000 annually in interest paid on their auto loans. However, this deduction is eventually eliminated for joint filers with earnings between $200,000 and $250,000 and for individuals making between $100,000 and $150,000.
- Senior tax deductions: For people 65 and older, the law offers an extra $6,000 tax benefit that will be in effect until 2028. However, for seniors with earnings beginning at $75,000, this additional deduction starts to fade down.
- CTC, Private schooling: The law prevents the current almost $14 million estate tax exemption from expiring in 2025 and returning to just over $7 million by extending it to allow individuals to pass on up to $15 million to their heirs tax-free. Also, it raises the child tax credit from $2,000 to $2,200, with the start of the 2026 inflation adjustment.
- Defence: The law increases defense expenses by $153 billion, of which $25 billion would go toward building the “Golden Dome” missile defense system and $7.5 billion will be used to improve housing, health care, education, and childcare for military personnel and their families.
- Border security: The law increased money for border security by $150 billion, of which $50 billion was set up to finish the southern border wall. Furthermore, it allocates $45 billion for the upkeep and extension of detention facilities, $8 billion to hire more immigration officials, and $27 billion for the assistance and execution of deportation efforts.
- Child saving accounts: For children under the age of eight, the law introduced special savings accounts with an initial $1,000 deposit for each child. These accounts allow families to make tax-free contributions of up to $5,000 year until the child reaches 18, after which the money can be used.
- Private colleges: Under the law, private universities with at least 3,000 tuition-paying students would be subject to a progressive tax on their endowment. The tax rate rises as the amount of endowment per student increases: schools with endowments between $500,000 and $750,000 per student pay 1.4% in taxes, those with endowments between $750,000 and $2 million pay 4%, and those with endowments over $2 million per student pay 8% in taxes on their endowment earnings.
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