House Republicans are advancing their legislative agenda with a sweeping package known as the “One Big Beautiful Bill Act,” which aims to implement tax cuts, spending cuts, and enhanced border security measures aimed at fulfilling promises made during Donald Trump’s presidency. Speaker Mike Johnson is working against unified Democratic opposition to get the legislation passed by Memorial Day.
The proposal, exceeding 1,000 pages, seeks to make permanent individual income and estate tax cuts from 2017 while introducing new tax provisions aligned with Trump’s 2024 campaign commitments, such as exempting certain types of tips and overtime from taxation. To manage revenue losses, Republicans plan to phase out some clean energy tax credits introduced during the Biden administration, estimating a total cost of around $3.8 trillion for the tax cuts.
Among the notable tax adjustments, the standard deduction would see a temporary increase: by $1,000 for individuals and $2,000 for joint filers. The estate tax exemption would rise to $15 million, adjusted for inflation going forward. The contentious state and local tax (SALT) deduction could also see an increase from its current cap of $10,000 to $40,000 for lower-income households.
On the spending front, the bill proposes to reduce funding for the Supplemental Nutrition Assistance Program (SNAP) by approximately $267 billion over ten years, introducing stricter work requirements for food aid. Similarly, Medicaid would experience nearly $700 billion in expenditure cuts, demanding new work requirements for eligible beneficiaries, significantly raising concerns about potential coverage losses for millions of Americans.
In addition to economic and social policy changes, the package outlines funding for Trump’s border security initiatives, allocating $46.5 billion to continue building the border wall and enhance immigration enforcement with a significant increase in personnel.
Other provisions target funding for national defense, allocating about $150 billion to the Department of Defense, and propose alterations to the student loan system, including a tax increase on university endowments to generate additional revenue.
While the implications of the bill raise substantial political and social discourse, Republicans assert that the proposed changes aim to stimulate economic growth and reinforce national security. However, critics, including Democratic leaders, express concern over the potential impact on vulnerable populations and essential services.
This complex legislative effort not only reflects ongoing partisan divides but also the Republican party’s strategy to deliver on Trump’s promises while navigating intra-party tensions. As discussions continue, the outcome will likely shape the political landscape ahead of the 2024 elections.