Explained: Trump’s ‘Big Beautiful Bill’- $3.3 Trillion In Tax Cuts, Healthcare Shocks & GOP Turmoil

In a major breakthrough for President Donald Trump’s domestic agenda, a group of House Republican holdouts — including both hardline conservatives and moderate members — dropped their opposition and agreed to support bringing his sweeping legislative package, dubbed the "Big Beautiful Bill," to the floor. Their reversal comes after days of internal GOP tensions over the bill’s $3.3 trillion projected deficit impact and proposed Medicaid cuts, clearing the path for a crucial vote in the US House of Representatives.

Lawmakers voted 219-213 in favour of the motion to proceed, paving the way for a possible final vote later in the day.

Key Provisions in the “One Big Beautiful Bill Act”

Permanent Extension of Trump’s 2017 Tax Cuts
At the heart of the bill lies Trump’s bid to lock in the 2017 Tax Cuts and Jobs Act, which slashed corporate and personal tax rates.

Though the law was pitched as a growth stimulant, critics argue it disproportionately benefited the wealthy. Provisions of that law are set to expire in December, but the current budget bill seeks to make them permanent. It also proposes increasing the standard deduction by $1,000 for individuals and $2,000 for married couples through 2028.

Targeted Social Security Tax Relief
While Trump campaigned on eliminating taxes on Social Security benefits, the bill falls short of full repeal. Instead, it offers a $4,000 deduction for individuals aged 65 and older between 2025 and 2028. Senate Republicans went further, approving a $6,000 deduction for older Americans earning less than $75,000 annually.

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Historic Overhaul of Medicaid
The bill proposes some of the most aggressive changes to Medicaid in decades. A new work requirement mandates that childless, able-bodied adults must work at least 80 hours a month starting December 2026 to qualify for Medicaid. Re-enrollment would occur every six months instead of annually, with additional documentation for income and residency.
The Senate version goes even further, requiring able-bodied adults with children aged 15 and up to also meet the 80-hour threshold.

According to the Congressional Budget Office (CBO), these changes could lead to 12 million Americans losing their health coverage over the next decade.
To offset backlash from rural Republican lawmakers, the Senate added a $50 billion rural hospital fund and delayed cuts to provider taxes until 2032. Still, the political risks remain high.
“This isn’t just reckless—it’s fiscally criminal,” said Rep. Keith Self, pointing to the Senate’s proposed $1 trillion in new deficit spending.

SNAP (Food Stamps) Reforms
Reforms to the Supplemental Nutrition Assistance Program (SNAP), used by over 40 million Americans, also feature prominently. States with error payment rates above 6% would be required to cover up to 15% of SNAP costs by 2028, ending the program’s fully federal-funded status. Work requirements would be imposed on able-bodied adults without dependents, echoing the Medicaid approach. Democrats have fiercely opposed the move. House Minority Leader Hakeem Jeffries called the bill a “reckless, regressive and reprehensible GOP tax scam.”
 

SAL(T): State and Local Tax Deduction Expansion
Currently capped at $10,000, the state and local tax (SALT) deduction would rise to $40,000 for five years before reverting. This is a key bargaining chip for Republicans in high-tax blue states like New York and California. The House bill did not include the sunset provision, potentially making the Senate version a sticking point in reconciliation.

“No Tax on Tips” and Overtime
Fulfilling another campaign promise, the bill includes a provision to make tip income and overtime wages partially tax-exempt. However, the benefits begin to phase out for individuals earning more than $150,000 and joint filers above $300,000. This provision is set to expire in 2028.

Child Tax Credit Adjustments
The Senate bill also seeks to permanently raise the child tax credit to $2,200—a $300 drop from the House’s $2,500 proposal. It also requires only one parent to have a Social Security number, a significant departure from the House bill’s dual-requirement clause.

Clean Energy and the GOP Divide
While both chambers agree on ending Biden-era clean energy subsidies, the Senate version allows for a phased drawdown, especially for companies building wind and solar infrastructure. The House version demands an immediate halt. Under the Senate proposal, companies breaking ground this year receive full tax credits. In 2026, that drops to 60%, then to 20% in 2027. Credits vanish entirely by 2028.

However, all companies must certify their supply chains are free from “foreign entities of concern”—a veiled reference to China.

Rep. Chip Roy (R-TX) declared the Senate version "not close to enough" to address GOP concerns over energy security.

Debt Ceiling Raised by $5 Trillion
A major highlight of the bill is a $5 trillion increase to the debt ceiling, compared to the $4 trillion limit in the original House bill.
This provision alone could be a deal-breaker for fiscal hawks in the House Freedom Caucus, who insist on no new borrowing without offsetting cuts.

CBO Projections
According to the non-partisan Congressional Budget Office:
The bill adds $3.3 trillion to the federal deficit over 10 years
Nearly 12 million people could lose Medicaid coverage
SNAP costs would shift significantly to the states
Tax reliefs disproportionately benefit higher earners

Trump’s Push: A Test of GOP Unity
As tension simmers, Trump has taken to Truth Social to rally support: “To my GOP friends in the House: Stay UNITED, have fun, and Vote 'YAY.’ We are on schedule—let’s be done before July 4!” He has urged Republicans to “ignore the grandstanders” and “get this bill to my desk.” 

But with moderates like Brian Fitzpatrick fleeing the floor after voting ‘no,’ and hardliners warning of “fiscal ruin,” unity may be elusive.

What’s Next?
The bill heads to the House for final debate and a possible vote on Wednesday. If it passes without amendments, it will go straight to Trump’s desk for signature. If the House makes changes, a new round of reconciliation with the Senate will be required.

For now, all eyes remain on a handful of undecided House Republicans who hold the fate of Trump’s most consequential domestic legislation in their hands.

(With Inputs From BBC)