Trump’s “Big Beautiful Bill” is a sweeping tax-and-spending package with major implications for taxes, social programs, border security, and the federal budget. Here are the key changes business and policy audiences should know:
1. Tax cuts and business incentives
- Extends and expands the 2017 Trump tax cuts, making most provisions permanent, including lower rates for individuals and businesses.
- $4.5 trillion in total tax reductions over a decade, with new breaks for income from tips, overtime, and auto loans.
- SALT deduction cap raised from $10,000 to $40,000 for five years, benefiting taxpayers in high-tax states.
- Child tax credit increases from $2,000 to $2,200 per child, though low-income families may not get the full benefit.
- Immediate expensing for business equipment and research is made permanent, benefiting capital-intensive industries.
- Middle-income households would see tax cuts of $500–$1,500 per year, while the wealthiest benefit most; lowest-income households could see losses of up to $1,600 annually.
2. Cuts to social safety net programs
- Medicaid and SNAP (food stamps) face significant funding reductions.
- Medicaid work requirements: Able-bodied adults 19–64 in Medicaid expansion states must work, volunteer, or study 80 hours/month; parents of children 14+ included.
- Eligibility for federal benefits is narrowed for noncitizens, with new restrictions and application fees for programs like asylum, work permits, and humanitarian parole.
- Clean energy tax credits and subsidies are rolled back or eliminated.
3. Border security and defense spending
- $350 billion allocated for border and national security, including:
- $46 billion for the U.S.-Mexico border wall.
- $45 billion for 100,000 migrant detention beds.
- Funding for the largest deportation campaign in U.S. history.
- Hiring 10,000 new Immigration and Customs Enforcement agents.
4. Federal debt and budget impact
- The Congressional Budget Office projects the bill will add $3.4 trillion to the national debt over the next decade, with the U.S. debt currently at $36.2 trillion.
5. Other notable provisions
- “Trump accounts”: A pilot program giving babies born between 2025–2028 a $1,000 government-funded investment account, with parental contributions allowed.
- Student loan program changes and elimination of some clean energy incentives.
Food assistance and health coverage for low-income Americans are reduced to help offset the cost of tax cuts and new spending.
| Area | Key Change(s) |
| Tax policy | 2017 tax cuts extended; new business/tip/overtime breaks; SALT cap raised |
| Social programs | Medicaid/SNAP cuts; work requirements; narrowed eligibility for noncitizens |
| Border/Defense | $350B for wall, detention, deportations, ICE hiring |
| Clean Energy | Credits/subsidies rolled back or ended |
| Child Tax Credit | Increased to $2,200 (not fully refundable for low-income families) |
| Federal Debt | $3.3T added over 10 years (CBO estimate) |
| Other | “Trump accounts” for babies; changes to student loans |
Winners: High-income households, some families with children, businesses, and sectors benefiting from border/military spending.
Losers: Medicaid and SNAP recipients, low-income Americans, many immigrants, and clean energy industries.
The bill still needs final reconciliation between House and Senate versions before it can become law.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. Given the nature of AI tools, mistakes may occur.