President Donald Trump signed this Friday the ambitious bill One Big Beautiful Bill that will extend tax cuts and gradually implement cuts to Medicaid.
Trump signed the "great and beautiful bill" at an event held at the White House on the occasion of the U.S. Independence Day. The president and his aides had set this July 4th as the deadline to have the legislation on his desk.
The United States Congress approved this Tuesday, by a narrow margin, the ambitious legislation that is one of the cornerstone elements of the agenda of former president and current Republican candidate Donald Trump.
The project was approved with the support of the Republican majority in the House of Representatives and is now heading towards the president's desk for enactment.
The "One Big Beautiful Bill" (BBB) is an ambitious and controversial piece of legislation that consolidates multiple campaign promises and represents a significant restructuring of the fiscal, social, and national security policies of the United States.
Among the main points of the law are the tax reforms, which permanently extend the tax cuts implemented in 2017 during Trump's first term, and exempt tips and overtime for workers earning less than $150,000 a year from taxation.
Also creates "Trump Accounts," savings accounts with tax benefits for education, housing, or job training; increases the child tax credit to $2,500 until 2028; allows for the deduction of up to $10,000 in interest on loans for vehicles manufactured in the U.S.; raises the deduction limit for state and local taxes (SALT) to $40,000 for those earning less than $500,000 annually.
The OBBB allocates over $150 billion to the military budget. For border security, $170 billion is designated, including funds for the wall, technology, and agents.
It also considers cuts to social programs, including over $1.2 billion in federal spending, mainly on Medicaid; imposes work requirements for receiving medical assistance; reduces subsidies for the Supplemental Nutrition Assistance Program (SNAP); and phases out tax incentives for renewable energy.
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