During his second term, Donald Trump launched his biggest and most important fiscal policy through the One Big Beautiful Bill Act (OBBBA), which sparked much controversy. OBBBA is an extension of Trump’s first-term policy, the Tax Cuts and Jobs Act of 2017, which is set to expire at the end of 2025. The policy aims to reduce corporate and individual taxes to stimulate national economic growth. Through OBBBA, these tax cuts will be made permanent while increasing spending on national security initiatives, particularly border security and immigration issues.
This policy has become controversial because it is alleged that instead of stimulating US economic growth, it has the potential to increase the economic deficit. It is estimated that this bill will cause a budget deficit of USD 3.3 trillion over the next 10 years. On the other hand, efforts to cover government spending resulting from this policy are sourced from massive budget cuts in other strategic sectors, particularly health and nutrition assistance programs, such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
These programs, which are relied upon by people with disabilities and low-income Americans to access healthcare and nutritious food, are among the targets. Funding cuts and changes to the application process for assistance have been made significantly larger, more complicated, and stricter in the bill approved by the Senate.
The existence of OBBBA is feared to threaten nearly 12 million Americans with the loss of health coverage, access to adequate food, and the operational sustainability of rural hospitals in states that rely on government assistance.
The bill has also sparked debate within the government. In its original draft, there was a policy to increase the tax deduction limit payable to state governments from USD 10,000 to USD 40,000. However, changes were made after the draft was approved by the Senate, where the increase limit will only apply for the next five years, while the version approved by the House of Representatives does not specify a time limit for the increase in tax deductions, which then sparked debate. In addition, there are still many other disagreements that make it difficult for this bill to be passed.
Differences of opinion within the government have led to uncertainty over the passage of this bill. Throughout the process, OBBBA has always been approved by a narrow margin: 215-214 in the House of Representatives on May 22, and 51-50 in the Senate on July 1. Currently, the OBBBA will be returned to the House of Representatives for further discussion to obtain final approval before being signed by the president and enacted into law.
Republican members of Congress have given Trump a deadline of July 4, coinciding with the anniversary of the United States’ independence, to approve this bill. However, the disagreements and controversies surrounding the bill pose a risk of delaying its enactment beyond the set deadline.
Will the OBBBA be approved and enacted? Will Trump be able to meet the deadline for its enactment? Will the OBBBA bring economic growth, or will it push the U.S. into the abyss of budget deficits and excessive debt?
Cover Image Source: abcnews.go.com
References:
Al Jazeera Staff. “Who Wins, Who Loses If Trump’s One Big Beautiful Bill Becomes Law?” Al Jazeera, July 2025. https://www.aljazeera.com/news/2025/7/1/who-wins-who-loses-if-trumps-one-big-beautiful-bill-passes.
Drenon, Brandon. “The Key Items of House Republican’s ‘Big Beautiful Bill.’” BBC, May 22, 2025. https://www.bbc.com/news/articles/c0eqpz23l9jo.
Hubbard, Kaia, and Caitlin Yilek. “Here’s What’s in Trump’s ‘Big, Beautiful Bill’ as Senate Nears a Final Vote.” Cbsnews.com. CBS News, June 28, 2025. https://www.cbsnews.com/news/whats-in-trump-big-beautiful-bill-senate-version/.
