Trump enacts "grand, impressive" legislation on American Independence Day
In a historic moment on July 4, 2025, President Donald Trump signed the "One Big Beautiful Bill" at the White House in Washington, DC. The bill, a comprehensive legislative package, is expected to have far-reaching impacts on various aspects of American life, including tax cuts, economic growth, border security, and support for families and agriculture.
The bill, which passed with a vote of 218-214 in the House of Representatives, was a significant victory for Trump, marking two weeks of significant wins, including an Iran-Israel ceasefire. Republican Speaker Mike Johnson worked tirelessly through the night to secure the final vote.
One of the key provisions of the bill is the largest middle-class tax cut in history. Families earning less than $100,000 will receive a 12 percent tax cut, with typical families receiving up to $10,900 more in take-home pay and workers seeing wage increases up to $7,200 annually. The bill also benefits tipped workers and hourly workers, providing them with around $1,300 and $1,400 more annually, respectively.
The bill expands and makes permanent tax credits, including a doubled Child Tax Credit increased to $2,200 for over 40 million American families, an increased standard deduction to $31,500 for families, expanded child care credits, paid leave tax credits, adoption tax credits, and health savings accounts. The bill also supports education by expanding 529 education savings accounts and educational freedom to support families in choosing K-12 materials or postsecondary trade credentials.
The bill aims to strengthen American agriculture and rural economies while enhancing domestic energy security and protecting family farms from foreign competition and excessive taxation. It boosts the farm safety net, makes crop insurance more affordable, and extends the 45Z clean fuel tax credit to enhance domestic energy security.
The bill also focuses on border security and immigration, strengthening border security, eliminating fraud and waste in programs like Obamacare and SNAP, holding states accountable for SNAP error rates, tightening work requirements, and preventing illegal immigrants from accessing taxpayer-funded health benefits and SNAP.
However, the bill is not without controversy. Critics have noted that some provisions may lead to increased costs or limit certain Americans' abilities to meet financial needs. The bill is projected to add $3.4 trillion over a decade to the U.S. deficit, and up to 17 million people could lose their insurance coverage under the bill. The bill simultaneously guts health and welfare support and is projected to lead to the closure of scores of rural hospitals.
Despite these concerns, Trump thanked Johnson at the White House event for the bill's passage and glossed over deep concerns from his own party and voters that it will balloon the national debt. Democrats hope public opposition to the bill will help them flip the House in the 2026 midterm election.
Elon Musk, Trump's billionaire former ally, opposed the bill. Two B-2 bombers roared over the White House at the start of the ceremony, symbolising the bill's focus on military strength and national security. The bill honours many of Trump's campaign promises, including extending tax cuts, boosting military spending, and providing funding for migrant deportation.
References: [1] White House Press Release, July 4, 2025. [2] Congressional Budget Office Summary, July 3, 2025. [3] Agriculture Department Summary, July 2, 2025. [4] Critics' Comments, July 1, 2025.
- The One Big Beautiful Bill, signed by President Donald Trump, is expected to have significant impacts on personal finance, with the largest middle-class tax cut in history.
- The bill includes increasing the Child Tax Credit to $2,200, expanding 529 education savings accounts, and providing wage increases up to $7,200 annually for workers.
- In the realm of finance and investing, the bill aims to strengthen the banking and insurance sector through increased tax credits and bolstering the farm safety net.
- In the realm of politics and policy-and-legislation, the bill focuses on border security and immigration, while also addressing war-and-conflicts, by securing an Iran-Israel ceasefire.
- Despite its promised benefits, the bill has faced criticism for potentially increasing costs, limiting certain Americans' financial abilities, and guttering health and welfare support.
