President Donald Trump signed a major tax and spending bill into law on Friday during an event at the White House. The bill, called the “One Big Beautiful Bill,” includes over $4.5 trillion in tax breaks and over $1 trillion in cuts to government programs.
Republicans in Congress passed the bill after days of debate and division within the party. Some Republicans were unsure about the bill’s high spending and large cuts to Medicaid.
But in the end, they voted in favor of it after Trump pushed for quick approval. Democrats had little power to stop it, since Republicans hold a narrow majority in both the House and the Senate.
The bill is expected to increase the U.S. national deficit and leave millions of low-income Americans without health care.
Key Parts of the One Big Beautiful Bill:
- Tax Cuts: Extends and expands tax cuts from the 2017 Tax Cuts and Jobs Act.
- New Tax Breaks: For people over 65, tipped workers, and car loan payers.
- Child Tax Credit: Becomes permanent and increases in value.
- Medicaid Cuts: Bill slashes funding for the low-income health insurance program.
- Food Stamp Cuts: Cuts to the SNAP program, also known as food stamps.
- Student Loan Overhaul: Fewer repayment options and borrowing caps for federal student loans.
- Debt Ceiling: Raises the U.S. debt limit by $5 trillion.
The Senate passed the bill with a 50-50 vote, and Vice President JD Vance cast the tiebreaker. The House approved it 219-213 on July 3.
President Trump called it a “win for the American people” and promised it would bring “more money, more freedom, and less government.”
