United States President Donald Trump is set to sign into law what he has long called his “big beautiful” bill, after Republican lawmakers successfully steered the nearly 900-page legislation through Congress in time for Independence Day.
The Senate approved the measure late on Thursday, with Vice President JD Vance casting the decisive tie-breaking vote. The House had narrowly cleared the final version earlier this week by 218 votes to 214.
The bill packs sweeping tax reforms, major defence allocations, healthcare restructuring and an aggressive immigration crackdown into one of the most far-reaching legislative acts in years. Its total value touches $4.5 trillion in tax relief alone.
Among its key features is a temporary rise in the child tax credit from $2,000 to $2,200, though the poorest families will still receive less than the full benefit. It also introduces new deductions on tips, overtime and auto loan interest, along with a $6,000 deduction for senior citizens earning up to $75,000 annually, an attempt to shield Social Security from taxation.
In line with Trump’s campaign pledge to undo the 2022 Inflation Reduction Act, the bill rolls back clean energy incentives, revoking tax breaks for electric vehicles, home charging stations and household energy upgrades. The Greenhouse Gas Reduction Fund, a programme supporting anti-pollution projects in underserved communities, will also be dismantled.
The legislation directs $350 billion towards immigration enforcement and national security. It provides funding for 100,000 detention beds, authorises hiring of 10,000 new ICE officers with $10,000 signing bonuses, and expands the Border Patrol. The Defence Department will also receive $1 billion specifically for operations related to the border.
Also read: Trump's Big Beautiful Bill passed
A separate $25 billion has been allocated for a new missile defence system dubbed the “Golden Dome”, while billions more are committed to shipbuilding and munitions production, reinforcing the Pentagon’s long-term procurement plans.
Medicaid, the public health insurance scheme for low-income Americans, has not been spared. A controversial provision bars payments to family planning providers that offer abortions, notably Planned Parenthood, for one year. The bill also enforces stricter eligibility checks and mandates work requirements for certain able-bodied adults.
Senate Republicans introduced an additional clause to lower Medicaid provider taxes from 6 per cent to 3.5 per cent by 2032, even as the bill sets aside $10 billion annually over five years to support rural hospitals. However, the Congressional Budget Office has projected that the new regulations would result in nearly 11.8 million Americans losing their Medicaid coverage over the next decade.
While critics have called the legislation an assault on working-class Americans and environmental protections, supporters have hailed it as a bold restructuring of American governance in line with conservative principles.
The bill’s passage marks a significant legislative victory for Trump in his current term. The President is expected to sign the bill at a ceremonial event on 4 July, reinforcing his political narrative of restoring American strength, sovereignty and financial independence.
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