 "After hours of stalemate, Republicans in the US Senate have narrowly passed Donald Trump's mega-bill on tax and spending on Tuesday. File image/AFP")
After a record 24-hour “vote-a-rama”, the Republican-led US Senate approved Donald Trump’s sweeping tax and spending package, officially titled the One Big Beautiful Bill Act, with Vice President JD Vance casting the tie-breaking vote on Tuesday (July 1). The voting saw three Republicans — Senators Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky — join the Democrats to vote against the bill.
Following the passage of the legislation in the Senate, the US president, who was on a visit to a migrant detention facility in Florida dubbed as ‘Alligator Alcatraz’, celebrated the news . “It’s a great bill,” he said. “There is something for everyone.”
The sprawling text — it is estimated to be 887 pages long — consisting of tax breaks, spending cuts and other Republican priorities now heads to the House of Representatives, where it faces unified Democratic opposition and multiple Republicans balking at the budget-busting costs, as well as slashed health care and food aid programs for poor Americans.
But what’s in the bill? How does it affect the common American? Let’s take a closer look.
What’s Trump’s One Big Beautiful Bill?
The One Big Beautiful Bill is Trump’s signature second-term domestic legislative package. The White House describes it as a “generational opportunity to deliver the long-term changes Americans voted for.”
It aims to:
>> Expand the scope of Trump’s 2017 tax cuts to the wealthy while introducing new tax breaks.
>> Cut federal spending and increase defence spending.
>> Raise the debt ceiling by up to $5 trillion.
>> Fund mass deportations of undocumented immigrants.
However, not everyone views it the same way. Polls show the bill is among the most unpopular ever considered.
But what’s in the bill?
The most important aspect of Trump’s One Big Beautiful Bill Act is tax cuts. In fact, Republicans who support the legislation say that the bill is much required as there would be a massive tax increase after December when tax breaks from Trump’s first term expire. The legislation contains about $4.5 trillion in tax cuts.
Big tax breaks: Under the bill, the existing tax brackets would become permanent. Moreover, it includes no taxes on tips, overtime pay, the ability to deduct interest payments for some automotive loans, along with a $6,000 deduction for older adults who earn no more than $75,000 a year.
The bill also increases the deduction limit for state and local taxes (Salt). At present, there’s a $10,000 cap on how much taxpayers can deduct from the amount they owe in federal taxes. However, Trump’s bill now approved by the Senate raises that cap from $10,000 to $40,000. However, after five years, it would return to $10,000.
Funding for deportations: Trump says he needs more money to carry out mass deportations, and the legislation ensures its. The bill provides some $350 billion for Trump’s border and national security agenda, including $46 billion for the US-Mexico border wall and $45 billion for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in US history.
The bill also earmarks money to hire 10,000 new Immigration and Customs Enforcement officers as well as Border Patrol officers.
Child tax credit: The Senate approved One Big Beautiful Bill also increases the child tax credit from $2,000 to $2,500 until 2028.
More military spending: The bill allots $25 billion for the Golden Dome missile defence system, $29 billion for shipbuilding and $15 billion for nuclear deterrence, among other provisions.
Slashing Medicaid and food stamps: In order to offset the revenue lost from the tax cuts, Trump’s bill targets the Medicaid programme, which 72 million people rely on for health coverage.
One of the big changes that the bill includes is the new work requirement for childless adults without disabilities. To qualify, the bill says, they would be required to work at least 80 hours per month from December 2026. The Senate-approved bill also requires states to conduct eligibility redeterminations for coverage every six months, rather than every 12 months based on current policy.
The Congressional Budget Office states that the Medicaid cuts could result in about 11.8 million people becoming uninsured by 2034.
The Senate bill calls on states to contribute more to the Supplemental Nutrition Assistance Program (Snap), or food stamps, which is used by over 40 million low-income Americans. It also makes work requirements stricter, which critics say would likely eliminate millions of people from SNAP’s rolls.
Cuts to green energy: The bill rolls back policies that support clean energy. A tax break for people who buy new or used electric vehicles would expire on September 30, instead of at the end of 2032 under current law.
Much, much more: The One Big Beautiful Bill also calls for a new children’s savings programme, called Trump Accounts, with a potential $1,000 deposit from the Treasury. Billions will also go for the Artemis moon mission and for the exploration of Mars. Moreover, a provision would increase the nation’s debt limit, by $5 trillion, to allow continued borrowing to pay already accrued bills.
What comes next?
The Senate approved bill now heads to the House of Representatives before it can reach the president’s desk to be signed into a law. However, the road through the House seems perilous.
Many in the House, including some Republicans, have expressed issues with the legislation and the changes made by the Senate. However, President Trump has demanded for his party to get on board and pass the bill.
“We are on schedule — Let’s keep it going, and be done before you and your family go on a July 4th vacation,” he wrote on Truth Social. “To my GOP friends in the House: Stay united, have fun, and vote ‘yay’.”
With inputs from agencies