What You Need to Know About President Donald Trump’s “One Big Beautiful Bill Act”

In what may become one of the most ambitious legislative proposals in recent U.S. history, President Donald Trump has unveiled the “One Big Beautiful Bill Act”—a sweeping megabill aimed at reshaping America’s tax system, national security priorities, and welfare programs in one bold move.

Described by Trump as a “once-in-a-generation” reform package, the bill consolidates key elements of his second-term agenda into a single piece of legislation. From deep tax cuts and expanded defense spending to aggressive border security measures and controversial reforms to social welfare programs, the bill is as expansive as it is polarizing.

While supporters hail it as a comprehensive fulfillment of Trump’s campaign promises, critics argue it could widen the national deficit and disproportionately impact vulnerable communities. With the bill already advancing through the House Budget Committee, all eyes are now on Congress—and the American people—to decide whether this “big, beautiful bill” becomes law or fades into political theater.

Here’s a breakdown of what’s inside the bill, where it stands in the legislative process, and what it could mean for the country.

1. Tax Cuts and Economic Measures

At the heart of the bill is an extension of the 2017 Tax Cuts and Jobs Act, making permanent several individual and corporate tax reductions. It also introduces new tax exemptions, including:

• Elimination of taxes on tips, overtime pay, and certain auto loan interest
• A temporary $2,000 increase in the standard deduction for joint filers
• A $500 boost to the child tax credit, raising it to $2,500
• An increase in the estate tax exemption from $13.6 million to $15 million

To help offset revenue losses, the bill proposes repealing or phasing out clean energy tax credits introduced under President Biden. However, fiscal projections estimate the legislation could add between $3 trillion and $5 trillion to the national debt over the next decade.

2. Immigration and Border Security

The bill allocates $46.5 billion to resume and expand construction of the U.S.-Mexico border wall, aiming to complete 700 miles of primary barriers. It also provides for:

• Hiring 3,000 Border Patrol agents and 5,000 Customs officers
• Expanding Immigration and Customs Enforcement (ICE) by 10,000 officers
• A controversial $1,000 asylum application fee, the first of its kind in U.S. history
• Plans to remove one million undocumented immigrants annually
• A detention capacity of up to 100,000 individuals
• New fees for immigration-related processes, including a $3,500 charge for sponsors of unaccompanied minors

3. Medicaid and Social Program Reforms

The bill introduces sweeping changes to Medicaid eligibility and food assistance programs. Key provisions include:

• Mandatory work requirements: Able-bodied adults without dependents must complete 80 hours per month of work, education, or volunteer service to remain eligible
• Implementation date: January 1, 2029
• Medicaid exclusion for individuals owning homes worth over $1 million

For the Supplemental Nutrition Assistance Program (SNAP):

• States would fund 5% of benefit costs and 75% of administrative costs by FY2028
• Work requirements would extend to beneficiaries up to age 64
• Parental exemptions limited to those caring for children under the age of 7

4. ‘MAGA’ Accounts for Newborns

The bill proposes the creation of “Money Accounts for Growth and Advancement” (MAGA)—a federal savings initiative for newborns. Highlights include:

• A $1,000 federal contribution for each child born between January 1, 2024, and December 31, 2028
• Families can contribute up to $5,000 annually
• Funds become accessible at age 18 for education, job training, or first-time home purchases
• At age 30, unused funds may be withdrawn for any purpose

5. Defense and National Security Spending

Nearly $150 billion is earmarked for military and national security investments, including:

• $25 billion for a proposed missile defense system called the “Golden Dome for America”
• $21 billion to replenish U.S. ammunition stockpiles
• $34 billion to expand the Navy’s fleet
• $9 billion dedicated to military housing, healthcare services, and special pay incentives for servicemembers

6. Education and Student Loan Overhaul

The bill proposes a broad restructuring of the federal student loan program, featuring:

• Consolidation into two repayment plans: one fixed over 10 to 25 years, and one income-based plan with stricter terms
• Repeal of borrower defense rules, which currently allow loan forgiveness for students defrauded by their colleges
• A proposed tax of up to 21% on large university endowments, aimed at elite institutions