A sweeping budget bill backed by US President Donald Trump is making its way through the Senate, with the ability to deeply change the United States economy and repeal much of President Joe Biden's biggest legislative achievements. The bill, officially the "One Big Beautiful Bill Act," blends a broad range of fiscal and policy priorities—from massive border spending and tax cuts to draconian cuts to healthcare and climate programmes, the Washington Post reported.
Principal tax relief for individuals and companies
Central to the bill is making Trump's 2017 tax reductions for individuals permanent, which are set to expire at the end of 2025. The standard deduction would be increased once more, and seniors would enjoy a new $6,000 bonus deduction. Companies would enjoy permanent access to expensing provisions for new purchases and research expenditures.
New tax benefits include exemptions for tips and overtime pay, interest deductibility of payments made on car loans on US-made cars, and tax credits for home-schooling or private school tuition through donations to scholarship organizations.
Profound cuts in social safety net initiatives
In order to fund these reforms, the Senate bill slashes major welfare programmes. Medicaid would have more stringent eligibility, work requirements, and state-imposed cost-sharing. The Supplemental Nutrition Assistance Program (SNAP) would also experience reduced federal funding, putting an enormous financial strain on state governments and even leading to local benefit cuts.
Student loan relief is another target. The bill repeals the Biden administration’s forgiveness programme and includes provisions to scale back federal loan repayment benefits, saving an estimated $320 billion over a decade.
Border wall and defence spending boom
The Senate legislation pays for nearly $170 billion in border and immigration enforcement. More than $46 billion is spent on constructing Trump's US-Mexico border wall and hardening the maritime ports of entry and $70 billion for detention centres. Defence also enjoys enormous increases, with $34 billion to fund missile systems such as Trump's "Golden Dome" programme and $25 billion to fund the supply chain for munitions production.
Climate, education, and public lands policy reversals
The legislation would eliminate key provisions of Biden's Inflation Reduction Act, cutting off the $7,500 electric vehicle tax credit and phasing out subsidies for Clean Energy Production. In the meantime, it requires more oil, gas, and coal leasing—even on previously protected Alaskan lands—and relaxes rules to accelerate extraction.
It also taxes high-end university endowments at higher rates and sells valuable wireless spectrum at auction to raise funds, a measure expected to bring in $85 billion over 10 years.
On public lands, the Bureau of Land Management would be required to offer parcels for housing development, except in places such as national parks.
Political interests and potential action
Although the House passed the original bill in May, the Senate bill is quite different. Trump and Republican leaders are pressuring the House to take the Senate's amendments in spite of internal resistance, particularly with regard to healthcare and debt.
Using budget reconciliation to override a Democratic filibuster, Republicans will pass the bill along party lines. The bill raises the debt limit by $5 trillion to prevent default, a step the US must take as it nears its borrowing level.
If enacted, the bill would be one of the most sweeping changes to US domestic policy in decades—entrenching Trump's economic policy and undoing much of the Biden-era welfare, education, and climate infrastructure.
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