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In a landmark moment for U.S. politics, Congress has passed what many are calling the most sweeping domestic legislation in decades—a massive tax and spending bill packed with bold changes to healthcare, immigration, energy, and tax policy. Dubbed the “Big Beautiful Bill,” the 887-page package squeaked through the House with a narrow 218–214 vote after Vice President JD Vance broke a 50–50 tie in the Senate. The legislation now heads to President Donald Trump’s desk, who is expected to sign it into law before the July 4 holiday.
The bill locks in most provisions of the 2017 Tax Cuts and Jobs Act, making them permanent and dramatically reshaping the tax landscape for individuals and businesses. The state and local tax (SALT) deduction cap will rise from $10,000 to $40,000 for five years, after which it reverts. Republicans hail the tax changes as a win for middle-class families, while Democrats argue they mostly benefit the wealthy.
Healthcare sees one of the bill’s most controversial shake-ups. New Medicaid rules will require work for able-bodied adults and demand stricter eligibility reviews. The Congressional Budget Office projects nearly 12 million Americans could lose Medicaid coverage over the next decade. Democrats, including Bernie Sanders, slammed the measure as a gut punch to rural hospitals and vulnerable communities. Though a provision to cut funds for states providing Medicaid to undocumented immigrants was scrapped due to reconciliation rules, the final bill still includes major restructuring. To offset damage, $50 billion has been earmarked for a rural hospital stabilization fund.
Immigration policy is also getting a dramatic overhaul. The legislation allocates $46.5 billion for border wall expansion and another $75 billion for ICE and immigrant detention infrastructure. A new $100 asylum-seeker application fee has sparked criticism from human rights advocates who say it burdens those fleeing danger, though the original $1,000 proposal was reduced significantly.
Green energy incentives have been rolled back, eliminating tax credits for electric vehicles and energy-efficient home improvements. Republicans argue this is a necessary cost-saving move; Democrats say it’s a step backwards for the environment. SNAP benefits are also targeted, with new work requirements for adults up to age 64 and penalties for states with high payment error rates.
The bill also lifts the federal debt ceiling by $5 trillion, aiming to avoid a default crisis looming in August. A modest increase to the child tax credit and a new “no tax on tips” policy offer limited wins for working families. Still, critics warn the bill will slash social safety nets while inflating deficits. As the ink dries, the political fight over its consequences is just beginning.
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