The Republican-led US Congress narrowly passed Donald Trump's flagship spending bill after a marathon voting session on the package. Photo / Jemal Countess, AFP
The Republican-led US Congress narrowly passed Donald Trump's flagship spending bill after a marathon voting session on the package. Photo / Jemal Countess, AFP
United States Republicans have passed a major legislative package, dubbed the “One Big Beautiful Bill”, giving President Donald Trump the biggest legislative victory of his second term.
After weeks of closed-door negotiations over the sprawling text - and several day-and-night debates - the House of Representatives narrowly approved a finalversion of the bill today NZT after it squeaked through the Senate.
Trump is set to sign the bill into law tomorrow NZT which will be July 4th, Independence Day, US time.
Here are some key provisions in the 869-page text:
Income tax cuts passed under Trump’s first term become permanent.
Creates new tax deductions for tips and overtime pay - a major Trump campaign pledge - but only into 2028.
Allows businesses to immediately deduct research and development expenses.
Temporarily quadruples a tax deduction for state and local taxes.
Immigration crackdown
US$46.5 billion ($76.48b) for border infrastructure, including wall construction.
US$45b ($74b) to create additional migrant detention facilities with 100,000 beds.
New funds to hire 10,000 Immigration and Customs Enforcement (ICE) officers.
Creates new fines for asylum seekers and migrants caught trying to illegally enter the country.
Clean energy cuts
Rolls back clean energy tax credits from former President Joe Biden’s own marquee spending bill, the Inflation Reduction Act.
Phases out federal subsidies for new wind and solar energy projects if they do not enter service before 2028 or if construction begins more than one year after the bill’s enactment.
Ends a US$7500 ($12,300) tax credit for EV purchases after September 30, 2025 - drawing particular ire from Trump’s former top ally, Tesla CEO Elon Musk.
Creates a tax credit for producing metallurgical coal, used largely in steel production.
Debt Limit
Increases America’s borrowing limit by US$5 trillion - a bitter pill for some Republican fiscal hawks.
Safety net programmes
Creates new restrictions on welfare for the poor and disabled, particularly the Medicaid health insurance programme and the Snap food assistance programme.
Requires able-bodied individuals under age 65 and without young children to work at least 80 hours per month to receive Medicaid or Snap.
Creates US$50b ($82b), five-year fund to support rural hospitals to partially offset larger cuts.
Women’s health
Blocks federal funding for one year to Planned Parenthood, a nationwide women’s health organisation often targeted by Republicans over its abortion services.
Other provisions
Creates savings accounts for newborns with US$1000 ($1600) deposits, dubbed “Trump Accounts”.
Space programmes get a boost, with US$10b ($17b) benefitting the mission to Mars and US$325 million ($535m) to decommission the International Space Station.
Creates a new tax on endowments of wealthy universities.
