President Trump Signs One Big Beautiful Bill Affecting Taxes, Deductions, Medicaid

On July 4, 2025, President Donald J. Trump signed the "One Big Beautiful Bill Act" into law, permanently extending key tax cuts from the 2017 Tax Cuts and Jobs Act and raising the SALT deduction cap temporarily while allowing the Pass-through Entity Tax workaround to persist until 2030. Supporters, including Senator Marsha Blackburn, praised the bill for historic tax relief, Medicaid protections, job creation, border security funding, and military investment, highlighting bipartisan efforts to exclude a moratorium on state AI regulations. Critics, however, argue the bill prioritizes the wealthy and military spending over healthcare, environmental initiatives, and education, with some, like Sen. Lisa Murkowski, voting for the bill despite acknowledging its flaws due to concessions benefiting their states. Republican Senators initially opposed to the bill, including Sen. Ron Johnson, ultimately supported it after assurances of future spending cuts and a commitment to further deficit reduction, although some expressed disappointment over missed opportunities to modify Medicaid expansion. The legislation has prompted debate over its long-term fiscal impact and the balance between tax relief and social program funding under the current administration.