Trump Signs $3.4T Tax Cuts, Medicaid Reductions Megabill

President Donald Trump signed a sprawling tax and spending megabill into law on July 4, marking a significant legislative victory early in his second term. The legislation, dubbed the “Big beautiful bill,” extends the 2017 tax cuts permanently while introducing new tax deductions and increased credits, such as boosting the child tax credit and raising the SALT deduction cap to $40,000 for five years. The bill also includes increased spending on immigration enforcement, national defense, and significant Medicaid cuts, which have drawn strong criticism from Democrats and some Republicans. Passed narrowly in the House and with Vice President JD Vance casting the tiebreaking Senate vote, the bill is projected to reduce tax revenues by $4.5 trillion over ten years but increase the national debt by $3.4 trillion, with estimates that millions could lose health insurance. Democrats remained unified in opposition, but Republican control of Congress ensured its passage, making the bill a defining measure of Trump's current presidency. Trump celebrated the signing as fulfilling campaign promises and advancing his policy agenda.