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Donald Trump’s ‘One Big Beautiful Bill Act’ becomes law! What is this and why is it in the discussion?

by Rajeev Bansal
July 5, 2025

His biggest legislative win in the second innings of US President Donald Trump, the ‘One Big Beautiful Bill Act’, took the form of a law with a signature during the Independence Day celebrations at the White House on 4 July 2025. It incorporates a huge bill of about 1,000 pages, cuts in welfare schemes, increase in defense spending and changes in cultural policies in a package. The bill passed by a slight margin of 218–214 in the Senate’s tie-breaking vote and House of Representatives in the Senate at a 50-50 equal to the US Parliament. Trump called it a “biggest bill in history”.

What is in the bill?

The bill was named by Trump himself at a rally, when he called it “a big, beautiful bill to fix everything”. This incorporates the major priorities of the Republican party – tax cuts, decreased welfare expenses, defense and immigration control – in a package. The main points are as follows:

1. Tax Reform: The Bill has made the Tax Cuts and Jobs Act of 2017 permanent, which gives more benefits to the higher income group. This includes tax exemption on tips and overtime income, relief in social security tax for senior citizens, and interest deduction on loans for American manufactured cars. The standard cuts for individuals have been increased to $ 16,000 (individuals) and $ 32,000 (married couples).

2. Welfare deduction: Medicade and Food Stamps (SNAP) are proposed by $ 930 billion. The condition of 80 hours of monthly work has been added to the 19-64 year old beneficiaries in the Medicade, so that 78 lakh people can be deprived of health insurance by 2034. SNAP has also expanded the terms of work.

3. Defense and Immigration: The bill has a provision of $ 175 billion in the defense budget for hundreds of billion dollars and Trump’s collective exile schemes. It also includes funding for the border wall.

4. Changes in education loan: The bill has been fixed at $ 50,000 per year for professional degrees and a lifetime of $ 200,000, and $ 20,000 per year for parent plus loan and $ 65,000 for lifetime.

Why is there in the discussion?

This bill was in controversy for several reasons. Democrats opposed it, calling it a means of “tax relief for billionaires”. House Minority Leader Hakim Jeffrees gave an eight -hour speech to stop it. The Congress Budget Office estimated that the bill would add $ 3.3 trillion to the national loan in the next 10 years, as the revenue loss of $ 4.5 trillion is much higher than a $ 1.2 trillion spending.

Some Republican supporters such as Allen Musk also criticized it, calling it a “insanity cost”. The bill also includes increased expenses for reduction in green energy tax credit and oil drilling, which some described China as an edge in the future.

Impact on India

It has no immediate effect for India, but areas like IT, pharma, clean energy and efficient immigration will keep an eye on it. Lack of tax rate on Remittens can be a beneficial step for Indian workers. This bill will become a major issue for Trump and Republican Party in the mid -term elections of 2026. This strengthens their economic and immigration policies, but the opposition of democrats and social workers will keep it controversial.

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