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President Donald Trump signed his $3.4 trillion ‘One Big Beautiful bill’ into law Friday, enshrining an extension of tax cuts, temporary new breaks for tipped workers and funding to crack down on illegal immigration.
The package encompasses a suite of priorities Trump campaigned on in 2024 — and its enactment at a White House ceremony represents a major political victory for the president.
“It’s really promises made, promises kept,” Trump said before signing the measure at an outdoor ceremony preceded by an Air Force flyover. After citing what he said were his efforts to restore American strength on the world stage, he called the bill “the biggest victory yet.”
Republican legislative leaders overcame narrow margins, unified opposition from congressional Democrats and objections by fiscal conservatives and moderates to pass the bill before Trump’s deadline, which coincided with the Independence Day holiday.
Trump and his supporters cast the measure as fuel for an economic renaissance, shrugging off nonpartisan projections that the package will drive up the national debt.
“Our country is going to be a rocketship economically,” Trump said, while dismissing polls that suggest the measure is unpopular.
Administration officials say the policy shift is just one piece of the president’s economic plan — with tariff revenue, regulatory repeals and increased US energy production also set to bolster growth.
Much of the new law’s expense comes in the form of tax cuts — including an extension of the breaks enacted during Trump’s first term as well as new ones for tips, certain car loans and overtime work.
The measure contains expanded tax breaks for seniors and parents, and raises a state and local tax deduction to $40,000 for the next five years from the existing $10,000 limit. That increase was highly sought after by House Republicans from high-tax states such as New York, New Jersey and California.
The package’s $4.5 trillion in tax cuts were partly offset by spending reductions, including cutting off incentives for renewable power and electric vehicles.
Nearly $1 trillion would be cut from Medicaid by imposing a new work requirement for able-bodied adults without children, imposing co-payments and limiting federal reimbursements to states. Food-aid work requirements would expand and states with error-prone systems would be penalized.
Trump’s bill also delivers hundreds of billions in new military funding and allows increased spending on immigration enforcement.
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