10 Things To Know About Trump's "One Big Beautiful Bill"

The "One Big Beautiful Bill Act," a pivotal element of President Donald Trump's second-term agenda, has sparked significant debate and legislative maneuvering in Congress. Primarily designed to extend the 2017 Tax Cuts and Jobs Act, this bill aims to make several tax cuts permanent while also proposing extensive reforms in healthcare, social security, and other sectors.

Central to these reforms are changes to Medicaid, introducing new requirements that may tighten eligibility and potentially lead to loss of coverage for some Americans.

Simultaneously, the bill raises the debt ceiling by $5 trillion, surpassing previous proposals and ensuring the government meets its financial obligations. Increased caps on state and local tax deductions are included, appealing to representatives from high-tax states, alongside modifications to SNAP benefits which shift more financial responsibility to states.

As the bill advances through the Senate, it encounters both support and opposition, promising an intricate legislative journey reflective of Trump's strategic economic priorities. © Win McNamee-Pool via Imagn Images

Social Security Tax Adjustments

The bill proposes eliminating taxes on Social Security income, fulfilling a campaign promise by Trump. While the House bill increased the standard deduction temporarily, the Senate seeks to further extend and raise these deductions specifically for older Americans. © The Arizona Republic-USA TODAY NETWORK via Imagn Content Services, LLC

Medicaid and Healthcare Reforms

Significant changes to Medicaid, including new work requirements and bi-annual re-enrollment, are proposed. These adjustments aim to cut federal spending, though they may lead to many losing coverage. The Senate bill also includes cuts to provider taxes but delays the implementation to alleviate concerns from states reliant on these funds for rural hospitals. © Win McNamee-Pool via Imagn Images

SALT Deduction Limit Increase

The cap on state and local tax (SALT) deductions is increased from $10,000 to $40,000 for certain taxpayers, expiring in 2030. This has been a contentious issue, especially for Republicans from high-tax states © [ALLEN EYESTONE/palmbeachpost.com] via Imagn Content Services, LLC

SNAP Benefit Modifications

States will shoulder more responsibility for funding the Supplemental Nutrition Assistance Program (SNAP). The bill introduces stricter work requirements for able-bodied adults and varies state contributions based on compliance with error rate standards. © Meghan McCarthy via Imagn Content Services, LLC

Debt Limit and Tax Policy

The Senate bill proposes raising the debt ceiling by $5 trillion, surpassing the House′s $4 trillion proposal. This measure seeks to eliminate the debt limit standoff and ensure government obligations are met © Allen Eyestone / USA TODAY NETWORK via Imagn Images

Child Tax Credit Changes

The child tax credit is set to permanently increase to $2,200, a compromise between the existing $2,000 and the higher proposals floated by the House. © Des Moines Register-USA TODAY NETWORK

Overtime and Tips Tax Deductions

Temporary provisions allow deductions on overtime and tips, set to expire in 2028. The Senate introduces income-based limitations, unlike the House version. © Chris Pedota, NorthJersey.com / USA TODAY NETWORK

Standard Deduction Developments

The Senate aims to make the increased standard deduction from 2017 permanent, diverging from the House bill, which extends the increase only until 2028. © Allen Eyestone via Imagn Content Services, LLC

Asylum Fee Adjustment

The Senate bill reduces the minimum asylum application fee to $100, aiming to balance fee structures following parliamentary input. © Chris Pedota, NorthJersey.com / USA TODAY NETWORK

AI Moratorium and Funding

A proposed 10-year moratorium on state regulations regarding artificial intelligence is included. The provision provides federal support to states complying with the moratorium, aligning with legislative reconciliation requirements. © Meghan McCarthy via Imagn Content Services, LLC