White House Pushes Trump's "One Big Beautiful Bill Act" Amid Controversy

On June 25, 2025, the White House intensified its advocacy for President Donald Trump's "One Big Beautiful Bill Act" (OBBBA), asserting that the legislation will reduce the U.S. federal debt through enhanced economic growth and increased tariff revenues. The Council of Economic Advisers (CEA) released a report claiming that these policies could lower the debt-to-GDP ratio to 94% by 2034 and generate deficit reductions between $8.5 to $11.2 trillion.

The OBBBA is a comprehensive legislative package encompassing significant tax reforms, increased defense spending, and substantial changes to social programs. Key provisions include:

• Tax Reforms: Extension and expansion of individual and corporate tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), including increasing the child tax credit and raising the state and local tax (SALT) deduction cap from $10,000 to $40,000 for taxpayers earning less than $500,000.

• Defense Spending: An additional $150 billion allocated for defense, focusing on unmanned drones and other military technologies.

• Border Security: $70 billion designated for border security measures, including $46.5 billion for border barriers and funds for hiring additional Border Patrol officers.

• Social Programs: Proposed cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), introducing work requirements and shifting some costs to states.

The White House projects that the OBBBA will stimulate economic growth, reducing the debt-to-GDP ratio to 94% by 2034 and achieving deficit reductions between $8.5 to $11.2 trillion. In contrast, the Congressional Budget Office (CBO) estimates that the bill would add $2.4 to $2.8 trillion to the national debt over the same period. Critics argue that the administration's projections are overly optimistic, noting that previous tax cuts, such as those in 2017, led to widened deficits.

The Senate, with a 53-47 Republican majority, faces internal divisions over the bill. Some Republican senators express concerns about the potential exacerbation of the $29 trillion Treasury bond market and the risk of a debt crisis. Additionally, proposed Medicaid cuts have raised bipartisan alarms, with senators like Susan Collins criticizing the steeper reductions and their potential impact on rural hospitals.

The OBBBA's proposed cuts to Medicaid and SNAP could lead to millions losing health insurance coverage and reduced access to food assistance, disproportionately affecting low-income and vulnerable populations. The CBO estimates that 10.9 million Americans could lose health insurance coverage under the bill. Furthermore, the bill includes a ten-year moratorium on state-level AI regulation, sparking debates over federal overreach and states' rights.

The OBBBA's approach mirrors previous Republican-led tax reforms, such as the 2017 TCJA, which also promised economic growth through tax cuts but resulted in increased deficits. The current bill's scale and scope, particularly in defense spending and social program cuts, are unprecedented, making it a significant legislative endeavor with far-reaching implications.

As the administration pushes for swift Senate approval, the OBBBA's potential long-term economic and social impacts underscore the importance of thorough analysis and debate.