US President Donald Trump has signed into law his flagship legislation, dubbed the “One Big Beautiful Bill,” coinciding with the United States’ 249th Independence Day celebrations. The nearly 900-page legislation, passed with the support of Republican leaders in Congress, aims to fulfill a series of promises made during Trump’s presidential campaign — including extending tax cuts, reinforcing immigration enforcement, and bolstering military strength.
Major tax reforms and business incentives
At the heart of the new law is a massive $4.5 trillion package of tax cuts aimed at both individuals and businesses. With previous Trump-era tax reductions set to expire by year-end, this legislation makes many of those cuts permanent. New deductions have also been added — including ones for overtime pay, tipped income, and auto loan interest.
Seniors earning under $75,000 annually will receive a $6,000 deduction, while the child tax credit will increase from $2,000 to $2,200, although lower-income families may not benefit fully. The cap on state and local tax deductions has been raised to $40,000 for five years.
Businesses stand to gain substantially, with 100% immediate write-offs for equipment and research spending. However, critics point out that the wealthiest households will see an average tax benefit of $12,000, while the poorest could lose $1,600 per year due to cuts in welfare programs.
Border wall funding and aggressive deportation plans
Trump’s bill allocates $350 billion to his border security initiatives, which include expanding the U.S.-Mexico border wall and increasing migrant detention capacity to 100,000 beds. The legislation also funds 10,000 new Immigration and Customs Enforcement (ICE) agents, each receiving a $10,000 signing bonus, and a surge in Border Patrol recruitment.
Additionally, new fees will apply to immigrants, especially those applying for asylum, as part of the financial framework supporting Trump’s aim of deporting up to one million individuals annually.
Increased defence spending and missile shield development
The Pentagon receives a major funding boost for naval shipbuilding, weapons development, and personnel welfare. The bill also designates $25 billion for the early development of a U.S.-based “Golden Dome” missile defense system, modeled after Israel’s Iron Dome. The system is expected to be operational by 2029, with an estimated total cost of $175 billion.
Deep cuts to Medicaid and food assistance
In a controversial move, the legislation enforces strict new eligibility criteria for social welfare programs. Adults up to age 65 will need to work at least 80 hours a month to qualify for Medicaid or food stamps, even parents of teenagers. A new $35 co-payment may also be charged to Medicaid users. Planned Parenthood and similar providers that offer abortion services are temporarily barred from receiving Medicaid reimbursements for a year.
The Congressional Budget Office estimates that over the next decade, the bill will increase the federal deficit by $3.3 trillion.
Energy policy rollbacks and space funding
Tax incentives for renewable energy projects have been significantly cut, including an early expiration for electric vehicle tax credits now set for September 30, 2025, rather than 2032.
Conversely, funding has been approved for ambitious space programs, including billions for NASA’s Artemis moon mission and exploration of Mars. The bill also provides $88 million for pandemic response oversight and includes a $5 trillion hike to the national debt ceiling.
Other key provisions
The legislation introduces “Trump Accounts,” a new federal savings initiative for children, with a $1,000 initial deposit. It also imposes a 1% excise tax on money transfers abroad and on university endowments, while eliminating taxes on gun silencers and short-barreled firearms.