From Tax Cuts to Deportation: Here’s what’s inside Trump’s ‘One Big Beautiful Bill’ passed by House after all-night showdown

The Republican-led US House of Representatives narrowly approved a sweeping tax and spending bill, despite warnings from budget experts that the legislation could substantially raise the federal debt.

The bill, which has been under development for months by House committees, underwent last-minute revisions to secure support from reluctant Republicans. Spanning more than 1,000 pages, it is named the “One Big Beautiful Bill Act,” a clear reference to Trump himself. It was passed by a close vote of 215 to 214.

In a final round of adjustments before the bill hit the House floor, Republicans increased the state and local tax deduction to appease centrists and accelerated Medicaid work requirements to address concerns about spending control.

Big Beautiful Bill| Here’s a breakdown of what the package contains, with further changes expected once it reaches the Senate

Permanent and new tax cuts for individuals and businesses

The bill locks in Trump-era tax cuts for individuals and estates and introduces temporary exemptions from taxes on tips, overtime pay, and auto loan interest. It also proposes rolling back clean energy tax credits introduced during the Biden administration to partially offset costs.

Temporary boost to standard and child tax deductions

For 2025 through 2028, the standard deduction would rise by $1,000 for individuals and $2,000 for joint filers. The child tax credit would temporarily increase by $500, reaching $2,500, before reverting to $2,000 with adjustments for inflation.

SALT cap raised to win centrist support

The state and local tax (SALT) deduction cap would increase from $10,000 to $40,000 for those earning up to $500,000. The cap would phase down for higher-income taxpayers and rise 1 per cent annually over the next decade.

Expanded tax relief for small businesses

Small businesses would see their pass-through deduction raised from 20 per cent to 23 per cent. Firms could also immediately expense the full cost of domestic R&D and equipment, encouraging investment.

Tighter work rules for food aid recipients

Spending on the Supplemental Nutrition and Assistance Program (SNAP) would be cut by $267 billion over a decade. States would begin sharing costs and implement stricter work requirements for certain recipients.

New Medicaid work requirements introduced

The bill imposes “community engagement” conditions 80 hours of work, education or service per month on able-bodied adults without dependents seeking Medicaid. Biannual eligibility checks would also become mandatory starting late 2026.

Gun silencer tax repealed

A longstanding $200 tax on gun silencers, in place since 1934, would be repealed. The bill also strips federal funding from Planned Parenthood and other organisations targeted by conservatives.

Federal ‘Trump’ savings accounts for newborns

Replacing the initially proposed “MAGA” accounts, the bill creates “Trump” accounts. Parents of babies born between 2024 and 2028 would receive $1,000 in federal seed money for each child’s savings account.

Funding restored for Trump-era deportation plans

The legislation earmarks $46.5 billion to restart construction of the southern border wall and supports Trump’s mass deportation strategy. It includes funding for 18,000 new hires across Border Patrol, Customs, and ICE.

Pentagon boost and missile defense shield funding

Defense receives nearly $150 billion in new funding, including $25 billion for Trump’s proposed “Golden Dome” missile shield. Additional money is allocated for naval shipbuilding, ammunition replenishment, and military housing and benefits.

University endowment tax and student loan overhaul

The bill overhauls student loan repayment into two simplified plans  a standard option and a “repayment assistance” version  while eliminating existing programs. It also imposes new taxes on large university endowments, aiming to save $330 billion.