President Donald Trump signed his sweeping “One Big Beautiful Bill Act” into law during July 4 celebrations at the White House. The comprehensive legislation includes permanent extensions to Trump’s 2017 tax cuts, new financial relief measures, and significant spending cuts to social safety net programs. The bill maintains the current tax brackets for individuals and eliminates the tax on social security for seniors.
It increases the standard deduction, estate and gift tax exemption, and child tax credit. The state and local tax deduction (SALT) limit is temporarily lifted to $40,000 starting in 2025. Families may benefit from the enhanced child tax credit, which extends to $2,200 per child beginning in 2025.
Older Americans may also be eligible for a temporary “senior bonus” deduction of up to $6,000, available from 2025 through 2028. However, the legislation includes about $1 trillion in cuts to Medicaid.
Trump signs comprehensive legislation
Beneficiaries aged 19 to 64 will be required to work at least 80 hours per month starting December 31, 2026, with specific exemptions. States will need to conduct eligibility redeterminations every six months. The bill also enacts cuts to the Supplemental Nutrition Assistance Program (SNAP), extending work requirements to adults aged 18 to 59 and parents with children aged 6 months to 12 years.
Eligibility will be limited to U.S. citizens and lawful permanent residents, potentially impacting over 5 million families. A new savings mechanism for children, “Trump accounts,” is introduced. It initially deposits $1,000 into a tax-advantaged savings account for children born from 2025 to 2028, allowing parents and employers to contribute annually.
Trump believes the comprehensive nature of the bill played a crucial role in securing its passage through Congress. The legislation aims to stimulate economic growth and provide benefits to American citizens, while also making significant changes to social programs.
