- House Republicans are divided over President Trump's "big, beautiful bill."
- The bill extends Trump tax cuts and invests in immigration law enforcement.
- Spending watchdogs estimate it will increase the budget deficit by trillions.
Senate Democrats used a procedural ploy to remove the name of President Donald Trump’s budget bill shortly before it passed the U.S. Senate on Tuesday morning.
The originally named “One Big Beautiful Bill Act” passed the U.S. Senate moments later by the narrowest of margins, and only after Vice President JD Vance stepped in as a tie-breaker.
The revised megabill, which comprises much of Trump’s domestic policy agenda, received a mixed response in the House, which now must approve the Senate changes after barely passing the original version by just one vote in May.
A political stunt though it may have been, the move to strike the name of Trump’s signature proposal points to a deep debate among lawmakers, between Republicans and across the population over whether the bill is “beautiful” after all.
What does the bill do?
The “big, beautiful bill” is largely a tax reform bill, wrapped around other Trump priorities, being shuttled through Congress through a strict budget process called “reconciliation.”
At 887 pages, the bill moves beyond renewing Trump’s biggest legislative win from his first term, his Tax Cuts and Jobs Act, to make major changes to government health care, security and energy.
On taxes, the bill:
- Makes permanent a decrease to the income tax rate across all income levels.
- Permanently raises the child tax credit from $2,000 to $2,200 for parents with a Social Security number.
- Increases the state and local tax (SALT) deduction cap from $10,000 to $40,000 for five years.
- Introduces limited tax deductions for income derived from tips and overtime wages.
On health care, the bill:
- Imposes Medicaid work requirements of 80 hours per month for able-bodied adults without children.
- Requires states to pay up to 15% of SNAP costs if they have an error payment rate above 6%.
- Places a 3.5% cap on the tax rate states can charge medical providers.
- Creates a $50 billion stabilization fund for rural hospitals over the next five years.
On security, the bill:
- Directs around $50 billion for border wall construction and surveillance.
- Allocates roughly $110 billion for immigration law enforcement and detention capacity.
- Allocates $128 billion for defense, including shipbuilding and munitions.
- Sets aside $12 billion for air traffic control improvements.
On energy, the bill:
- Accelerates the phase-out of green energy tax credits from the Inflation Reduction Act.
- Increases oil and gas leasing on federal lands and cuts royalty rates for fossil fuel extraction.
- Establishes deadlines for solar and wind programs to begin service to qualify for tax credits.
What do voters think?
Several surveys conducted in June found Americans were not impressed with the “big, beautiful bill.”
A Quinnipiac poll conducted from June 22 to 24 found that 55% of voters oppose the bill, 29% support it and 16% aren’t sure. Polls conducted earlier in the month found disapproval ranging from 64% to 59%, 49% and 42% of voters.
However, some individual policies had less opposition. Over 70% of voters support extending tax cuts for individuals with incomes under $100,000, according to a Washington Post-Ipsos poll from June 6 to 10.
But when told Medicaid requirements could result in millions losing coverage, the Washington Post-Ipsos poll and a KFF poll found that opposition grew significantly.
Who supports the bill?
The bill has been praised by Republican leadership, many mainstream Republicans and a host of industry associations.
Senate Majority Leader John Thune, R-S.D., called the legislation “an incredible victory for the American people,” while Utah Sen. John Curtis said it “delivers for Utahns.”
Airlines for America praised the funds to modernize the nation’s air traffic control system, while Americans for Prosperity praised the “pro-growth tax policy” and the American Petroleum Institute hailed “a new era of energy dominance.”
On Wednesday, Trump predicted that if passed by the House, the bill would “HAVE AN ECONOMIC RENAISSANCE LIKE NEVER BEFORE. ... DEFICIT CUT IN HALF, RECORD INVESTMENT — CASH, FACTORIES, JOBS POURING INTO THE USA."
Who opposes the bill?
The bill faces opposition from all congressional Democrats, as well as fiscal hawks, angry about the impact on national debt, and GOP moderates in the U.S. House, worried about Medicaid cuts.
The White House said the bill will reduce federal deficits by “over $2 trillion by increasing economic growth and cutting waste, fraud, and abuse across government programs at an unprecedented rate.”
However, this prediction is not shared by most spending watchdogs, who estimate the bill will increase budget deficits by $3-$4 trillion over the next decade, or over $1 trillion even with the most optimistic growth assumptions.
Health care providers have come out strongly against the bill. The American Hospital Association said the nearly $1 trillion in Medicaid requirements — “the largest (cuts) ever proposed by Congress” — will lead to nearly 12 million Americans losing health care coverage.
“This is not a ‘big, beautiful bill’ at all,” said Senate Minority Leader Chuck Schumer, D-N.Y., on Tuesday after moving to strike the bill’s name. “It is really the ‘big ugly betrayal,’ and the American people know it.”