Trump’s Major Bill Passes Congress: Key Details on the New Law Unveiled

In a significant legislative move, Republicans pushed a comprehensive tax and spending cut bill through the House, setting it on a direct path to President Trump’s desk by his self-imposed July 4th deadline. The bill, which spans nearly 900 pages, includes a wide array of tax breaks, spending reductions, and other Republican priorities, highlighting national defense and immigration reforms.

Despite vocal opposition from Democrats, the legislation passed in the Senate with a pivotal tiebreaking vote from Vice President JD Vance, finalizing the vote at 218-214 in the House after earlier passing a different version by just one vote.

The centerpiece of the bill is a massive $4.5 trillion in tax cuts, aimed at preventing a significant tax hike set to take effect once the initial tax breaks from Trump’s earlier term expire. This legislation aims to make existing tax rates permanent while introducing several new deductions, including a $6,000 deduction for older adults with modest incomes and a child tax credit increase to $2,200.

Additionally, the bill proposes quadrupling the cap on state and local tax deductions (SALT) to $40,000 for five years, benefiting taxpayers in high-tax states like New York. Business-related tax cuts are also abundant, allowing immediate write-offs for new equipment and research expenses.

However, the benefits skew heavily toward wealthier households who stand to gain an average of $12,000 annually, while the poorest Americans could face up to $1,600 in losses, primarily due to cuts in Medicaid and food assistance programs, according to a Congressional Budget Office analysis.

In terms of immigration and national security, the legislation allocates around $350 billion to Trump’s agenda, which includes funding the U.S.-Mexico border wall and hiring thousands of new Immigration and Customs Enforcement officers. The bill further aims for an extensive deportation plan targeting up to one million individuals per year.

To finance these initiatives, the bill seeks to make significant cuts to Medicaid and food assistance programs, imposing new work requirements on beneficiaries. Analysts predict that up to 11.8 million Americans could become uninsured by 2034 if the bill is enacted.

Moreover, the Republicans are proposing to roll back tax incentives for clean energy projects introduced in Biden’s climate-focused bill, inciting criticism from some Democrats who argue this move could jeopardize the renewable energy sector.

Among various provisions, the bill establishes a children’s savings program termed “Trump Accounts” and introduces a new excise tax on university endowments. Notably, it eliminates a $200 tax on gun silencers and short-barreled rifles.

Late modifications to the bill included a $10 billion annual allocation to rural hospitals for five years, a move made to appease certain GOP factions concerned about the impact of reduced Medicaid provider taxes.

The Congressional Budget Office projects that this legislation could increase federal deficits by nearly $3.3 trillion over the next decade. Meanwhile, Senate Republicans argue that existing tax breaks should not be counted as new costs, a perspective Democrats dismiss as misleading “magic math.”

This unfolding situation continues to attract attention both for its fiscal implications and its potential effects on various segments of the American population.