One Big Beautiful Law Act (YUCH)

Background on the One Big Beautiful Law Act

 

The One Big Beautiful Law Act (OBBBA), often referred to simply as the "big beautiful law" in reference to President Donald Trump's rhetorical style, is a massive budget reconciliation bill signed into law by Trump on July 4, 2025, during a White House ceremony. Enacted as H.R. 1 in the 119th Congress, it was a cornerstone of Trump's second-term domestic agenda following the Republican victories in the 2024 elections, which secured a slim House majority and a 53-seat Senate edge. The bill, spanning 870 pages, permanently extends many provisions from the 2017 Tax Cuts and Jobs Act (TCJA) set to expire at the end of 2025, while incorporating new tax breaks, spending boosts for defense and immigration enforcement, and deep offsets through cuts to social safety net programs.

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Republicans used the reconciliation process to pass it without Democratic support, bypassing the Senate filibuster. Negotiations were contentious, with fiscally conservative GOP members pushing back on deficit impacts and moderates like Sen. Susan Collins opposing health cuts. The bill passed the House 215–214 on May 22, 2025, the Senate 51–50 on July 1 (with VP JD Vance's tiebreaker), and the House again 218–214 on July 3. It contributed to a brief 2025 government shutdown over disputes on health spending reductions.

 

Overall, the nonpartisan Congressional Budget Office (CBO) estimates it will add $2.8–3.8 trillion to the federal deficit over 10 years, primarily through $4.46–5.9 trillion in tax cuts offset by about $1.2–2.5 trillion in spending reductions.

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The law has been polarizing: supporters hail it as a pro-growth package delivering relief to workers and families, while critics decry it as regressive, favoring the wealthy (with 80% of benefits going to the top 10% of earners) and dismantling New Deal-era programs, potentially causing 10.9–13.7 million people to lose health coverage and accelerating Social Security and Medicare insolvency by a year.

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Key Provisions Overview

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The OBBBA reshapes federal policy across taxes, health, immigration, energy, and education. Below is a breakdown of major categories, with a focus on provisions eliminating or cutting funding for programs.

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Tax Reforms (Mostly Permanent Extensions and New Breaks)

 

These form the bill's core, reducing revenue by trillions but providing immediate benefits to middle- and upper-income households.

• Permanently extends the 2017 TCJA's lower individual income tax rates (top rate 37%) and nearly doubled standard deduction.

• Raises the state and local tax (SALT) deduction cap from $10,000 to $40,000 (temporary, reverts after 2029; phases out above $500,000 AGI).

• New deductions: Up to $25,000 for tips (phases out at $300,000 joint AGI, expires 2028); up to $12,500 ($25,000 joint) for overtime pay; up to $10,000 for auto loan interest on U.S.-assembled vehicles (2025–2028).

• Increases child tax credit to $2,200 per child (inflation-indexed, temporary until 2028).

• Other: $15 million estate/gift tax exemption (indexed); above-the-line charitable deduction up to $2,000; 1% excise tax on outbound remittances; raises college endowment excise tax to 8% (exempts small schools).

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| Provision | Estimated Cost/Savings (10 Years) | Beneficiaries |

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| Permanent TCJA Extensions | -$3.5 trillion (revenue loss) | Middle/upper-income taxpayers |

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| Tips/Overtime Deductions | -$200 billion | Service/blue-collar workers |

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| Child Tax Credit Increase | -$150 billion | Families with children (excludes some low-income) |

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Spending Increases

• $150 billion for defense (e.g., drones, military capabilities).

• $150–170 billion for border enforcement, boosting ICE funding from $10 billion to over $100 billion by 2029 to support mass deportations.

• $50 billion Rural Hospital Fund to stabilize facilities.

• Expands Low-Income Housing Tax Credit to build 1.22 million affordable units (2026–2035).

• $5 trillion debt ceiling increase.

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Provisions Eliminating or Cutting Funding for Programs

To offset tax cuts, the bill includes over $1.2 trillion in reductions, targeting social welfare, health, nutrition, education, and environmental initiatives. These are often delayed until after 2026 midterms for political cover, with work requirements and eligibility tightenings projected to disenroll millions. Critics, including the NAACP Legal Defense Fund, call them the largest such cuts in U.S. history.

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| Program/Area | Key Cuts/Eliminations | Details & Impacts |

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| **Medicaid (Health Coverage for Low-Income)** | 12% overall cut (~$1 trillion total); work requirements (80 hours/month for ages 19–64); eligibility checks every 6 months; 5-year wait for green card holders; 1-year defunding of Planned Parenthood. | Up to 11.8 million lose coverage over 10 years; higher uncompensated care costs for hospitals; rural facilities at risk of closure; 51,000 preventable deaths annually estimated. |

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| **SNAP (Food Assistance)** | $186 billion cut (2025–2034); work requirements (80 hours/month for ages 18–64); shifts costs to states; repeals National Education and Obesity Prevention Grant Program. | Millions lose benefits, worsening food insecurity; affects children and elderly; waivers for Alaska/Hawaii but broad national impact. |

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| **Clean Energy & Environment (IRA Rollbacks)** | Phases out EV tax credits (after Sept. 30, 2025); ends home electrification credits (after Dec. 31, 2025); eliminates green hydrogen credits (by Dec. 2027); rescinds IRA conservation/climate funds; favors fossil fuels (e.g., coal subsidies). | 830,000 job losses in renewables; 50% rise in wholesale power prices by 2035; increased emissions and factory closures. |

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| **Student Loans & Education** | Eliminates subsidized graduate loans; limits unsubsidized loan amounts; cuts public school funding; eliminates workforce Pell grants; changes 529 plan rules. | Prices out grad students in key fields; devastates school operations; reduces access for low-income borrowers. |

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| **Medicare (Drug Pricing)** | Reverses Inflation Reduction Act's drug price negotiations. | Loses $5 billion in savings; higher costs for seniors. |

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These cuts disproportionately harm low-income households (bottom 20% see 2.9–3.1% income drop) and vulnerable groups like the disabled, elderly, and immigrants, while boosting incomes for the top 1% by 1.9–2.7%. Public polls show 42–64% disapproval, with potential backlash in 2026 elections.

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THE ONLY SOLUTION is to elect more accountable representatives to Congress and submit a fix (driven by We the People) to this Act. Once in Congress, I will drive such a fix, starting with the 7th District of Illinois. 

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For full text, see Congress.gov.​​​