I thought I’d walk you step by step through the latest on President Trump’s enormous economic package—the “One Big Beautiful Bill.” It’s moving very quickly in Congress and may have a gigantic impact on everything from taxes to healthcare.
Here’s the story and how it may affect you.
Republicans push to meet July 4 deadline
Republican lawmakers toiled day and night to meet Trump’s deadline. Here is what transpired:
- The Senate passed the bill Tuesday on a slim 51-50 vote, with Vice President JD Vance casting the tie-breaking vote.
- Lawmakers worked over the weekend, having all-night debates in the House and Senate.
- The House passed the bill, paving the way for final approval.
Most significant financial impacts of the bill
As calculated by the Congressional Budget Office (CBO), the estimated 10-year budget impact is:
- $4.5 trillion decrease in federal tax collections
- $1.1 trillion reduction in federal spending
- $5 trillion increase in the U.S. debt limit
These numbers forecast drastic tax reductions and widespread reassigning of government spending priorities.
Most important medicaid and healthcare changes
The most unpopular provision of the bill is perhaps how it impacts Medicaid, the health care program for 71 million low-income Americans.
The bill includes:
- More stringent enrollment requirements
- New work requirements
- State spending habits enforced to bring in more federal dollars
Impact: Almost 12 million Americans would lose coverage, the CBO estimates.
Republicans added, at rural communities’ request:
- $50 billion of rural health care providers’ spending.
Nonpartisan budget experts have been warning about who advances and who falls behind under the bill:
- More affluent Americans receive the biggest tax windfalls.
- Low-income Americans will lose out net, as tax windfalls are overshadowed by reductions in safety net programs.
- The bill is seen as transferring wealth from young to old, with long-term increases in debt.
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Economic risks and investor misfortunes
The bill raises the debt ceiling to avoid imminent default, but fiscal experts are sounding alarms about more pernicious problems:
- Moody’s downgraded the U.S. debt in May, anticipating rising deficits.
- Some foreign investors are pulling back from U.S. Treasury bonds.
- The bill’s debt burden is feared to spur borrowing costs in the future and water down its short-term stimulus to the economy.
What tax cuts are included
The bill extends and makes permanent the 2017 Trump tax cuts, blocking automatic tax increases later this year:
Corporate and individual tax cuts are enshrined as permanent
New loopholes in taxation impact:
- Tip workers
- Overtime pay
- Seniors
- Auto financing
- Permanent credits for businesses and families
Changes during Senate debate
A handful of controversial provisions were stripped during Senate debate:
- Prohibition on state-by-state regulation of AI
- Foreign investment retaliation tax, which had created Wall Street angst
The final bill has deeper tax cuts and more severe cuts in healthcare than the earlier House bill passed in May.
Political and public reactions
In view of the 2026 midterm elections, the bill is certain to be a center of attention:
- Republicans expect the tax cuts to grow the economy and create additional popularity.
- Democrats are emphasizing the low-income Americans’ impact and growing national debt.
- Public opinion is split — most Americans are concerned about cost and fairness.
Final thought
If you’re along for the ride with U.S. policy, this is a momentous day. Trump’s “One Big Beautiful Bill” has the possibility of reshaping tax policy, healthcare, and federal finances for the decade to come. Some come out ahead, and some — particularly those who are dependent on federal assistance — lose big.
I can walk you through it if you’d like on how this would specifically affect your particular situation — happy to help.
