Trump Signs One Big Beautiful Bill Act into Law

News Summary

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act, a legislation introducing significant tax cuts and spending reductions. This act is projected to cost about $4.5 trillion over the next decade, targeting mainly small businesses and higher earners while imposing stricter work requirements for those on Medicaid and SNAP. Critics argue it disproportionately benefits the wealthy and could affect millions of Americans’ health coverage. With these sweeping changes, the economic landscape is set to shift dramatically.

Washington, D.C. — President Donald Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, at the White House, marking a major shift in fiscal policy with sweeping tax cuts and spending reductions. The legislation passed Congress narrowly, with no support from Democratic lawmakers.

The new law implements around 50 different tax cuts aimed at boosting the economy, particularly for small businesses, entrepreneurs, and manufacturers. According to the Congressional Budget Office (CBO), the tax cuts will cost approximately $4.5 trillion in federal revenue over the next decade. Funding for these tax benefits will primarily come from cuts to social assistance programs such as Medicaid and food stamps, which Republicans argue will maintain essential services for vulnerable populations.

House Speaker Mike Johnson claimed that the bill will “energize the nation’s economy,” while critics such as U.S. Representative Troy Carter argued that it offers limited tax advantages that expire in only four years, disproportionately benefiting wealthier donors.

The law makes the 2017 tax cuts permanent, averting an estimated $4.3 trillion tax increase for Americans that would have occurred if the previous cuts were allowed to expire. In 2026, an estimated 85% of U.S. taxpayers are expected to benefit from decreased tax rates. For instance, Louisiana taxpayers faced an average projected tax increase of $2,135 if the bill had not passed, while lower earners might save around $150. Middle-income households—those earning between $66,801 and $119,200 annually—are projected to receive an average tax cut of about $1,750.

Notably, higher earners, specifically individuals making over $217,100 annually, will see an average tax reduction of $12,540, which accounts for nearly 60% of total tax benefits from the legislation. The bill also allows workers in tipped positions to deduct up to $25,000 of their tip income for tax purposes until 2028, provided their income does not exceed $150,000. Additionally, it eliminates all federal taxes on overtime pay for blue-collar workers and enables them to deduct up to $12,500 in overtime compensation.

The law introduces strict new work requirements for individuals receiving Medicaid and SNAP assistance, specifically targeting adults aged 19–64 without dependents. These individuals will be required to work, volunteer, or attend school to remain eligible for benefits. Critics warn that these changes could affect millions of Americans, with estimates suggesting up to 17 million may lose health coverage as a result of the policy shakeup.

In conjunction with the new work requirements, projections indicate that around 4.2 million people may lose insurance due to the removal of enhanced subsidies instituted during the COVID-19 pandemic under the Affordable Care Act. Furthermore, tax incentives for homeowners who undertake energy-efficient upgrades or purchase electric vehicles will be eliminated, potentially undermining ongoing investments in green energy.

The bill is projected to contribute approximately $3.4 trillion to the national debt over the next decade. While some local and state economies may adapt positively to these changes, warnings abound regarding potential job losses resulting from cuts to safety-net programs. As the One Big Beautiful Bill Act takes effect, its wide-reaching implications are anticipated to unfold across various sectors, influencing both individual taxpayers and social service recipients alike.

Deeper Dive: News & Info About This Topic

• The Washington Post: Trump Tax Bill Takes Effect
• Wikipedia: Tax reform in the United States
• Washington State Standard: Fallout from Medicaid Cuts
• Google Search: Trump tax bill
• NBC Washington: Trump’s Tax Law and Youngest Americans
• Encyclopedia Britannica: Taxation
• Stat News: Trump Tax Bill Winners and Losers
• Google News: Trump One Big Beautiful Bill Act