President Donald Trump is set to sign his “big, beautiful bill” into law Friday, after it narrowly passed the House, with Vice-President JD Vance breaking a tie in the Senate.
The Congressional Budget Office warns the bill could add $3.3 trillion to the deficit and strip millions of healthcare access — claims the White House rejects.
Major slashes to Medicaid programme spending
The bill imposes work requirements and six-month re-enrolment for some Medicaid users. It lowers the provider tax cap from 6% to 3.5% by 2032, which could affect funding in rural states. Nearly 12 million may lose coverage, the CBO says.
Social insurance payroll deductions
Though Trump pledged to eliminate Social Security income taxes, the bill offers limited tax relief: seniors earning under $75,000 may claim a $6,000 deduction through 2028.
Renewal of 2017 Tax Reforms
Individual tax cuts will be extended, including lower rates, expanded child tax credit, and estate tax exemptions.
Raising the cap on SALT deductions
The cap rises from $10,000 to $40,000 for five years, then returns.
Cuts to food benefits
States with high error rates in SNAP must co-fund benefits. Work requirements are added for some enrollees.
Defense and Border Security
$150bn goes to defense, with $100bn for ICE expansion.
Clean energy incentives
Biden-era clean energy credits will be phased out, especially for firms linked to foreign entities.