In a historic gesture that may shape his second term, US President Donald Trump on Friday signed into law the 'One Big Beautiful Bill' (OBBB) an ambitious, thousand-page legislative package that melds permanent tax reductions, a major increase in Pentagon spending, and enormous new spending on border security. Trump signed the bill on a star-spangled Fourth of July at the White House with Republican lawmakers, Cabinet officials, and cheering military families in attendance.

The bill's passage is one of Trump's most significant political victories since his return to power, and he has billed it as the greatest evidence yet of his core campaign pledge, "Promises made, promises kept." The signing ceremony, on the South Lawn, included a military flyover with B-2 stealth bombers, the same planes used in last month's airstrikes against Iranian nuclear facilities, as well as patriotic music by the US Marine Band and a celebratory crowd festooned with red, white, and blue.

OBBB

What Is the 'One Big Beautiful Bill'? 

The 'One Big Beautiful Bill', as dubbed by Trump himself, is a solitary omnibus bill weaving together several Republican agendas into one ginormous package. The bill enshrines the far-reaching 2017 tax reductions, slated to expire, into permanent law. It also abolishes federal taxation on tips and overtime pay for employees who earn up to 160,000 USD per year, a crucial vow Trump had made to service industry employees and hourly wage earners. The bill increases the State and Local Tax (SALT) deduction limit, from 10,000 USD to 40,000 USD a change mostly helping well-off residents of states that have high local taxes. It also establishes new 'Trump Savings Accounts', which will invest seed money for all US newborns, a policy Republicans say will enable families to save for school or emergencies from the time a child is born.

Aside from tax relief, the OBBB releases another 350 billion USD in funds for the Pentagon as well as for increasing border security along the US-Mexico border. This includes funds for new barriers, additional immigration enforcement agents, and increased detention facilities for illegal immigrants. It does this by repealing some federal excise taxes that conservatives have fought to eliminate for decades, including gun silencer and indoor tanning taxes. To pay for the enormous tax cuts and defense expenditures, however, the bill imposes deep cuts on Medicaid, SNAP food assistance, and subsidies for renewable energy projects, provisions that have come under stern criticism from Democrats and unions.

How Congress Passed the One Big Beautiful Bill

The path to the July 4 signing was politically stressful and won by a hair. Following months of behind-closed-doors negotiations and heated committee debates, the House of Representatives approved the bill on Thursday in a 218-214, razor-thin vote. Two Republicans, Kentucky Rep. Thomas Massie and Pennsylvania Rep. Brian Fitzpatrick voted against the legislation, citing worry about its effect on the federal deficit and government healthcare programs. All House Democrats voted against the bill. On Wednesday earlier this week, the Senate passed the OBBB on a 51–50 vote, with Vice President JD Vance providing the tie-breaker as Senate President. Republican Senator Thom Tillis of North Carolina, who had indicated that he would oppose the bill, said he would not run for reelection after reportedly coming under great pressure from Trump's inner circle. Trump personally thanked Speaker Mike Johnson, House Majority Leader Steve Scalise, Senate Majority Leader John Thune, and House Majority Whip Tom Emmer for shepherding the bill through both houses during Friday's signing.

Trump Declares Victory, Confronts Deficit Impact

Grinning as he held the ceremonial gavel Speaker Johnson presented to him, the same one used to pass the House's final vote, Trump said the moment was a "triumph of democracy on the birthday of democracy." “America’s winning, winning, winning like never before,” Trump announced from the White House driveway, standing with First Lady Melania Trump and alongside supporters waving flags and military families taking a break during the annual picnic. "We made commitments, and we fulfilled them. This bill delivers lower taxes, more jobs, tougher borders, and the strongest military anywhere on the planet. Trump brushed off criticism that the OBBB will worsen the national debt, which the nonpartisan Congressional Budget Office (CBO) estimates will rise by 3.3 trillion USD over the next decade because of the bill. He insisted that economic growth sparked by tax cuts and deregulation would outweigh any short-term deficit increases. “Our country is going to be a rocket ship economically,” Trump told reporters.

Democrats Criticise Medicaid, SNAP, And Clean Energy Cuts

Critics of the 'One Big Beautiful Bill' say it is a bonanza for big corporations and rich Americans, taking away health care and food aid from millions of working-class and low-income families. AFL-CIO President Liz Shuler criticized the bill as "the worst job-killing bill in American history" and warned that up to 17 million Americans may lose Medicaid coverage. The bill reverses critical provisions of former President Barack Obama's signature Affordable Care Act and eliminates President Biden's green energy tax credits and climate incentives.

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Democratic National Committee Chair Ken Martin forecasted the cuts to politically haunt Republicans. "Donald Trump and his party just gave billionaires the largest tax break in a generation while taking healthcare and food away from hardworking families," Martin stated. "This betrayal of working families will cost the GOP its House majority in 2025." The CBO estimates that almost 12 million more Americans will lack coverage under the new law, while surveys show a majority of US adults oppose cutting Medicaid and SNAP, although they support some of the bill's tax proposals such as the tip and overtime deductions.

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With the OBBB signed into law, Democrats are threatening to make it a focus of their 2025 midterm election strategy. Party officials are organising countrywide rallies, hard-hitting ad campaigns, and celebrity-vouched voter registration events to highlight the bill's reductions in healthcare and nutrition programs. Meanwhile, Trump and Republican allies believe the legislation cements a core message for swing voters, lower taxes, stronger national defense, and a crackdown on illegal immigration. “This is what the American people voted for, and they’re going to vote for it again,” Trump said on Friday, predicting the bill will help Republicans expand their control of Congress next year.