From medicaid cuts to EV tax credits rollbacks: What’s inside Trump’s sweeping ‘One Big, Beautiful Bill’

US President Donald Trump’s massive legislative package—dubbed the “One Big, Beautiful Bill”—has passed both chambers of Congress and now awaits his signature, expected on July 4.

The bill cleared the House with a slim 218–214 margin after intense lobbying by Republican leaders and personal outreach from Trump himself, including private meetings and a social media blitz. The passage represents a major legislative win for the GOP, which has capitalized on its post-2024 majority to deliver a sweeping overhaul across tax, healthcare, immigration, and environmental policy.

Tax Cuts Made Permanent, SALT Cap Raised

A central feature is the permanent extension of Trump’s 2017 tax cuts, along with new tax breaks for overtime and tipped workers. The state and local tax (SALT) deduction cap will rise from $10,000 to $40,000 for five years. These changes, though popular with high-income earners, are projected to add $3.4 trillion to the national deficit over the next decade.

Medicaid Reforms Raise Alarm
The legislation introduces strict new work requirements and tighter eligibility checks for Medicaid, potentially impacting up to 12 million low-income Americans, according to CBS News. It also restricts Medicaid funding for gender-affirming care and undocumented immigrants in certain states, while phasing out provider taxes. A $50 billion fund will be created to support struggling rural hospitals.

SNAP Work Mandates Expanded
Work requirements for the Supplemental Nutrition Assistance Program (SNAP) will now apply to able-bodied adults up to age 64, though Alaska and Hawaii are exempt. States with high administrative error rates will be required to share more of the program’s costs.

Aggressive Immigration and Border Policies
The bill commits $121 billion toward border and immigration enforcement—$46 billion for wall construction, $45 billion to expand detention capacity, and $30 billion to increase ICE staffing. A new $100 fee will apply to asylum applications, down from the initially proposed $1,000.

Climate Programs Rolled Back
Environmental policies face major cuts. The bill repeals tax credits for electric vehicles and energy-efficient home upgrades that were part of President Biden’s Inflation Reduction Act. It also dissolves the Greenhouse Gas Reduction Fund, although it maintains current international environmental agreements.

Debt Limit Raised, Child Tax Credit Enhanced
To avoid a government default, the federal debt ceiling will be raised by $5 trillion. The child tax credit will be permanently increased to $2,200, and tipped workers will be allowed to deduct up to $25,000 in income, within certain limits.

President Trump is expected to celebrate the bill’s signing during a July 4 rally in Des Moines, Iowa. Democrats, who unanimously opposed the legislation, argue it favors the wealthy and undermines support systems for vulnerable communities. They plan to highlight the bill’s impact as a central campaign theme heading into the 2026 midterms.