Trump’s “Big Beautiful Bill” is a sweeping tax-and-spending package with major implications for taxes, social programs, border security, and the federal budget. Here are the key changes business and policy audiences should know:
1. Tax cuts and business incentives
- Extends and expands the 2017 Trump tax cuts, making most provisions permanent, including lower rates for individuals and businesses.
- $4.5 trillion in total tax reductions over a decade, with new breaks for income from tips, overtime, and auto loans.
- SALT deduction cap raised from $10,000 to $40,000 for five years, benefiting taxpayers in high-tax states.
- Child tax credit increases from $2,000 to $2,200 per child, though low-income families may not get the full benefit.
- Immediate expensing for business equipment and research is made permanent, benefiting capital-intensive industries.
- Middle-income households would see tax cuts of $500–$1,500 per year, while the wealthiest benefit most; lowest-income households could see losses of up to $1,600 annually.
2. Cuts to social safety net programs
- Medicaid and SNAP (food stamps) face significant funding reductions.
- Medicaid work requirements: Able-bodied adults 19–64 in Medicaid expansion states must work, volunteer, or study 80 hours/month; parents of children 14+ included.
- Eligibility for federal benefits is narrowed for noncitizens, with new restrictions and application fees for programs like asylum, work permits, and humanitarian parole.
- Clean energy tax credits and subsidies are rolled back or eliminated.
3. Border security and defense spending
- $350 billion allocated for border and national security, including:
- $46 billion for the U.S.-Mexico border wall.
- $45 billion for 100,000 migrant detention beds.
- Funding for the largest deportation campaign in U.S. history.
- Hiring 10,000 new Immigration and Customs Enforcement agents.
4. Federal debt and budget impact
- The Congressional Budget Office projects the bill will add $3.3 trillion to the national debt over the next decade, with the U.S. debt currently at $36.2 trillion.
5. Other notable provisions
- “Trump accounts”: A pilot program giving babies born between 2025–2028 a $1,000 government-funded investment account, with parental contributions allowed.
- Student loan program changes and elimination of some clean energy incentives.
Food assistance and health coverage for low-income Americans are reduced to help offset the cost of tax cuts and new spending.
| Area | Key Change(s) |
| Tax policy | 2017 tax cuts extended; new business/tip/overtime breaks; SALT cap raised |
| Social programs | Medicaid/SNAP cuts; work requirements; narrowed eligibility for noncitizens |
| Border/Defense | $350B for wall, detention, deportations, ICE hiring |
| Clean Energy | Credits/subsidies rolled back or ended |
| Child Tax Credit | Increased to $2,200 (not fully refundable for low-income families) |
| Federal Debt | $3.3T added over 10 years (CBO estimate) |
| Other | “Trump accounts” for babies; changes to student loans |
Winners: High-income households, some families with children, businesses, and sectors benefiting from border/military spending.
Losers: Medicaid and SNAP recipients, low-income Americans, many immigrants, and clean energy industries.
The bill still needs final reconciliation between House and Senate versions before it can become law.
Disclaimer: For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.