President Donald Trump 's expansive " One Big Beautiful Bill Act " narrowly advanced through the Budget Committee with a 17-16 vote on Monday. Framed by Trump allies as a “mandate” from voters, the bill is the result of weeks of intense negotiations between House leadership and fiscal conservatives. It had stalled on Friday when several Republicans broke ranks, citing concerns about rising deficits. But fresh amendments over the weekend, including deeper spending cuts and a more aggressive border enforcement framework, brought sceptics back on board.
Speaker Mike Johnson is now aiming for a full House vote before Memorial Day, hoping to capitalise on party momentum and deliver a legislative win before the summer recess. If passed, the bill would mark one of the most ambitious Republican policy overhauls in decades, touching nearly every sector of federal governance from healthcare and education to tax policy and energy.
The 1,100-page proposal serves as the backbone of Trump’s second-term domestic agenda, blending tax relief, immigration crackdowns, entitlement reform, and defence spending into a single, fast-moving budget reconciliation bill.
Here are the key highlights of the bill:
Tax cuts and economic Measures
Central to the bill is the extension of the 2017 Tax Cuts and Jobs Act, making permanent reductions to individual and corporate tax rates. New provisions include exemptions from taxes on tips, overtime, and certain auto loan interests, aligning with Trump's campaign promises. The bill also proposes a temporary $2,000 increase to the standard deduction for joint filers and a $500 boost to the child tax credit, raising it to $2,500. The estate tax exemption would rise to $15 million.
To offset some of the revenue losses, the legislation suggests repealing or phasing out clean energy tax credits introduced during President Biden's tenure. However, projections indicate that the bill could add between $3 to $5 trillion to the national debt over the next decade.
Immigration and border security
The bill allocates $46.5 billion to resume construction of the U.S.-Mexico border wall, aiming to complete 700 miles of primary wall and additional barriers. It provides funds to hire 3,000 new Border Patrol agents, 5,000 customs officers, and 10,000 Immigration and Customs Enforcement officers. A notable provision is the imposition of a $1,000 fee on migrants seeking asylum, a first in U.S. history, aligning the country with nations like Australia and Iran in this regard.
The plan envisions the removal of one million immigrants annually and the capacity to detain 100,000 individuals in detention centers. Additional fees are proposed for various immigration-related applications, including a $3,500 fee for sponsors of unaccompanied children.
Medicaid and social program reforms
A significant aspect of the bill is the introduction of work requirements for Medicaid recipients. Able-bodied adults without dependents would need to engage in at least 80 hours per month of work, education, or service to qualify. These requirements are set to commence on January 1, 2029. Additionally, individuals with homes valued over $1 million would be ineligible for Medicaid.
The Supplemental Nutrition Assistance Program (SNAP) would also see changes, with states required to shoulder 5% of benefit costs and 75% of administrative costs starting in fiscal 2028. Work requirements for food aid would extend to individuals up to age 64, and exemptions for parents would only apply to those caring for children under seven.
'MAGA' accounts for newborns
The bill introduces "Money Accounts for Growth and Advancement" (MAGA) accounts, providing a $1,000 federal contribution for babies born between January 1, 2024, and December 31, 2028. Families can contribute up to $5,000 annually, with funds accessible for education, training, or first-time home purchases upon reaching age 18. At age 30, account holders can use the remaining funds for any purpose.
Defense and national security spending
The legislation earmarks nearly $150 billion for the Department of Defense and national security initiatives. This includes $25 billion for the "Golden Dome for America," a proposed missile defense shield, $21 billion to replenish ammunition supplies, and $34 billion to expand the naval fleet. An additional $9 billion is allocated for servicemember housing, healthcare, and special pay.
Education and student loan overhaul
A comprehensive revamp of the student loan program is proposed, consolidating existing repayment plans into two options: a standard plan with payments over 10 to 25 years and a less generous income-based repayment assistance plan. The bill also seeks to repeal regulations that facilitated loan cancellations for borrowers defrauded by their colleges. Furthermore, it introduces a tax increase of up to 21% on certain university endowments.
Speaker Mike Johnson is now aiming for a full House vote before Memorial Day, hoping to capitalise on party momentum and deliver a legislative win before the summer recess. If passed, the bill would mark one of the most ambitious Republican policy overhauls in decades, touching nearly every sector of federal governance from healthcare and education to tax policy and energy.
The 1,100-page proposal serves as the backbone of Trump’s second-term domestic agenda, blending tax relief, immigration crackdowns, entitlement reform, and defence spending into a single, fast-moving budget reconciliation bill.
Here are the key highlights of the bill:
Tax cuts and economic Measures
Central to the bill is the extension of the 2017 Tax Cuts and Jobs Act, making permanent reductions to individual and corporate tax rates. New provisions include exemptions from taxes on tips, overtime, and certain auto loan interests, aligning with Trump's campaign promises. The bill also proposes a temporary $2,000 increase to the standard deduction for joint filers and a $500 boost to the child tax credit, raising it to $2,500. The estate tax exemption would rise to $15 million.
To offset some of the revenue losses, the legislation suggests repealing or phasing out clean energy tax credits introduced during President Biden's tenure. However, projections indicate that the bill could add between $3 to $5 trillion to the national debt over the next decade.
Immigration and border security
The bill allocates $46.5 billion to resume construction of the U.S.-Mexico border wall, aiming to complete 700 miles of primary wall and additional barriers. It provides funds to hire 3,000 new Border Patrol agents, 5,000 customs officers, and 10,000 Immigration and Customs Enforcement officers. A notable provision is the imposition of a $1,000 fee on migrants seeking asylum, a first in U.S. history, aligning the country with nations like Australia and Iran in this regard.
The plan envisions the removal of one million immigrants annually and the capacity to detain 100,000 individuals in detention centers. Additional fees are proposed for various immigration-related applications, including a $3,500 fee for sponsors of unaccompanied children.
Medicaid and social program reforms
A significant aspect of the bill is the introduction of work requirements for Medicaid recipients. Able-bodied adults without dependents would need to engage in at least 80 hours per month of work, education, or service to qualify. These requirements are set to commence on January 1, 2029. Additionally, individuals with homes valued over $1 million would be ineligible for Medicaid.
The Supplemental Nutrition Assistance Program (SNAP) would also see changes, with states required to shoulder 5% of benefit costs and 75% of administrative costs starting in fiscal 2028. Work requirements for food aid would extend to individuals up to age 64, and exemptions for parents would only apply to those caring for children under seven.
'MAGA' accounts for newborns
The bill introduces "Money Accounts for Growth and Advancement" (MAGA) accounts, providing a $1,000 federal contribution for babies born between January 1, 2024, and December 31, 2028. Families can contribute up to $5,000 annually, with funds accessible for education, training, or first-time home purchases upon reaching age 18. At age 30, account holders can use the remaining funds for any purpose.
Defense and national security spending
The legislation earmarks nearly $150 billion for the Department of Defense and national security initiatives. This includes $25 billion for the "Golden Dome for America," a proposed missile defense shield, $21 billion to replenish ammunition supplies, and $34 billion to expand the naval fleet. An additional $9 billion is allocated for servicemember housing, healthcare, and special pay.
Education and student loan overhaul
A comprehensive revamp of the student loan program is proposed, consolidating existing repayment plans into two options: a standard plan with payments over 10 to 25 years and a less generous income-based repayment assistance plan. The bill also seeks to repeal regulations that facilitated loan cancellations for borrowers defrauded by their colleges. Furthermore, it introduces a tax increase of up to 21% on certain university endowments.
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