7.3.25 – Epoch Times
“What’s in Trump’s One, Big, Beautiful Bill Act (OBBBA)?”
by Joseph Lord, Lawrence Wilson
Excerpts from this article:
Congress passed the One Big Beautiful Bill Act (OBBBA) on July 3, 2025.
The mammoth bill, [OBBBA] which is more than 940 pages, was the result of weeks of intraparty and bicameral negotiations among House and Senate Republicans.
Once signed by the president [on 7.4.25], the legislation will implement sweeping changes to U.S. policy and funding over a 10-year period in order to carry out President Donald Trump’s second-term agenda.
The OBBBA includes:
Making the 2017 tax cuts permanent;
Tax breaks on tips, overtime, and Social Security income;
Completing the border wall;
$150 billion in defense spending; and
Repealing so-called green energy tax credits.
Here are the main components of the OBBBA bill.
2017 Tax Cuts Extended
The centerpiece of the legislation [OBBBA] is its extension of the tax cuts initially included in the Tax Cuts and Jobs Act [TCJA] of 2017 during Trump’s first term in office.
That law slashed marginal tax rates across the board with most brackets seeing around a 2 percent to 4 percent cut.
Child Tax Credit Boosted
The bill will boost the child tax credit from $2,000 to $2,200 and make the credit permanent.
Taxes on Overtime, Car Loans, Tips Reduced
The [OBBBA] bill will implement some of Trump’s core campaign promises on tax policy, reducing taxes on tips, overtime pay, and car loans.
Taxpayers will be allowed to deduct the first $25,000 in income earned from tips;
Up to $12,500 in income from overtime pay for single filers or up to $25,000 for joint filers; and
Up to $10,000 of car loan interest on American-made vehicles.
$6,000 Social Security Deduction for Seniors
Instead of Trump’s “no taxes on Social Security,” the bill will allow seniors to deduct $6,000 of their Social Security income, with that amount decreasing once income passes $75,000 for single filers or $150,000 for joint filers.
Single filers who make $175,000 or more, or joint filers with an income of over $250,000, will NOT be eligible for the deduction.
Funding Immigration and Border Security
The legislation will dedicate $150 billion toward immigration enforcement in line with some of the core promises Trump made on the campaign trail.
That includes nearly $30 billion for Immigration and Customs Enforcement [the agency largely responsible for carrying out Trump’s mass deportation operation], alongside $13.5 billion in grants for state and local governments who assist with the effort.
The bill allocates $45 billion for the detention of illegal immigrants.
Another $46.5 billion is dedicated to the construction of a wall along the U.S –Mexico border.
The funding will cover expenditures through the end of fiscal 2029.
Defense
The bill will appropriate $157 billion toward defense;
$29 billion going toward enhancing U.S. maritime capabilities and shipbuilding;
$25 billion slated for munitions; and
$25 billion dedicated to the “Golden Dome“ missile defense project.
The funding will cover expenditures through the end of fiscal 2029.
Clean Energy Tax Credit Cuts
Several clean energy tax credits included in the Inflation Reduction Act are being cut beginning as early as 2025.
The electric vehicle tax credit will end on Sept. 30 [2025].
To retain their tax credits [depending on the type of project], other clean energy projects, including hydrogen, wind, and solar, will need to be online by either Dec. 31, 2027, or Jan. 1, 2028…
Medicaid and Rural Hospitals
The bill will seek to reduce Medicaid spending by requiring people who are childless and able-bodied to work or do community service for 20 hours a week.
It also reduces the “provider tax” (the rate at which states tax hospitals and doctors to pay for their Medicaid programs) from 6 percent to 3.5 percent in states that expanded Medicaid under the Affordable Care Act.
Ten states that didn’t expand their programs will see no changes.
To offset fears that these changes would harm rural hospitals, the bill allocates $50 billion to support such facilities.
The bill would block abortion clinics [e.g., Planned Parenthood] from receiving Medicaid funding for one year.
SNAP Cuts
The bill would, for the first time, require states to contribute to the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps.
The amount would vary based on a state’s payment error rate but would fall between 5 percent and 15 percent.
However, Alaska and Hawaii can apply for a waiver from this provision if they are making a good-faith effort to reduce their error rates.
It would also increase states’ share of administrative costs from the current percent rate of 50 percent to 75 percent.
$5 Trillion Debt Ceiling Increase
The bill would increase the U.S. debt ceiling by $5 trillion...
$40,000 SALT Cap
One of the most divisive issues in crafting the bill has been the state and local tax (SALT) deduction; that deduction was capped at $10,000 in the Tax Cuts and Jobs Act of 2017.
The Senate bill will increase that cap to $40,000 annually, increasing by 1 percent for five years instead of the 10 years initially sought by its supporters as a compromise.
Beginning in 2030, the cap will return to $10,000.
SALT allows taxpayers to deduct a portion of their state and local taxes from their federal taxable income.
The program is controversial with conservatives, who view it as favoring blue state taxpayers over those in comparably low-tax red states…
Education Policies Tweaked
The [OBBBA] bill would make several tweaks to federal education policy.
It would reduce Pell Grant eligibility for high-income students and students with a full ride.
It proposes two federal student loan repayment plans, including one traditional repayment plan and one income-based repayment plan.
Additionally, it would tax college and university endowments at a variable rate — either 1.4 percent, 4 percent, or 8 percent — based on the institution’s wealth.
MORE INFORMATION
7.4.25 -- “Five Major Policies To Know from the One, Big, Beautiful Bill Act” – by Eric Revell – Fox Business -- https://www.foxbusiness.com/politics/five-major-policies-know-from-one-big-beautiful-bill-act
7.3.25 – “House Passes BBB as Conservatives Win ‘Significant Commitments’ on Life, Transgenderism” – by Ben Johnson – Washington Stand -- https://washingtonstand.com/news/house-passes-bbb-as-conservatives-win-significant-commitments-on-life-transgenderism
7.3.25 – “PASSED: The One, Big, Beautiful Bill – The Largest Tax Cut in American History” -- U. S. House Committee on Ways and Means -- https://waysandmeans.house.gov/2025/07/03/passed-the-one-big-beautiful-bill-the-largest-tax-cut-in-american-history/
Background on The One, Big, Beautiful Bill:
✔ The typical family will get up to $10,900 in additional take-home pay.
✔ Workers will see increased wages up to $7,200.
✔ Households earning less than $100,000get a 12 percent tax cut compared to today.
✔ Up to 7.2 million jobs protected and created, and 1 million new jobs annually by small businesses.
✔ No tax on tips, overtime pay, car loan interest, and tax relief for seniors will put more money annually in Americans’ pockets, $1,300 per tipped worker specifically, and $1,400 for hourly workers.
✔ Locks in and further boosts the doubled Child Tax Credit to $2,200 for more than 40 million American families.
✔ Locks in and further boosts the doubled Standard Deduction, increasing it to $31,500 for families.
✔ Expands 529 education savings accounts and educational freedom to empower American families and students to choose the education that best fits their needs, whether it is K-12 materials or obtaining a postsecondary trades credential.
✔ Supports working families and small businesses by expanding access to the child care credit and making permanent the paid leave tax credit. Enhances the Adoption tax credit to help more families experience the joy of adoption and grows the child and dependent care credit as well as FSAs.
✔ Puts American families in control of their health care by expanding health savings accounts.
✔ Eliminates fraud and waste in Obamacare and blocks access to taxpayer-funded health benefits for illegal immigrants.
✔ Starts building financial security for America’s children at birth with the creation of new Trump savings accounts.
7.3.25 – Champions Life and Puts American Families First -- https://waysandmeans.house.gov/2025reconciliation/fact-sheets/champions-life-and-puts-american-families-first/
FACT SHEET: Makes America Win Again
FACT SHEET: Puts American Workers First
FACT SHEET: Fuels America’s Economic Growth
FACT SHEET: Makes Rural America Great Again
FACT SHEET: Champions Life and Puts American Families First
FACT SHEET: The One, Big, Beautiful Bill Delivers Biggest Wins for the Working Class