Senate Advances Trump's "One Big Beautiful Bill Act" Amid Controversy
On June 28, 2025, the U.S. Senate narrowly advanced President Donald Trump's "One Big Beautiful Bill Act" (OBBBA) with a 51-49 procedural vote, setting the stage for formal debate on this comprehensive tax and spending legislation.
The 940-page OBBBA proposes extending the 2017 tax cuts, introducing additional tax reductions, and significantly increasing military and border security spending. To offset the anticipated revenue losses, the bill includes substantial cuts to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), renewable energy incentives, and other social welfare programs. The Congressional Budget Office (CBO) estimates that the bill would add approximately $3 trillion to the national deficit over the next decade and result in 16 million more Americans being uninsured by 2034. The bill has sparked controversy, with critics like Elon Musk condemning it as fiscally irresponsible and threatening political action against its Republican supporters. The Senate's advancement of the bill marks a critical step toward its potential passage before the July 4 recess.
Legislative Background
The OBBBA is a comprehensive tax and spending package that builds upon the 2017 Tax Cuts and Jobs Act. Key provisions include:
-
Tax Provisions: Extension of individual and corporate tax cuts from 2017, an increase in the child tax credit to $2,500 through 2028, and the introduction of a 5% tax on remittances.
-
Defense and Border Security: An additional $150 billion allocated to defense spending, focusing on uncrewed drones and other military technologies, and $70 billion for border security enhancements, including $46.5 billion for border barriers.
-
Social Welfare Cuts: Significant reductions in funding for Medicaid and SNAP, with the CBO projecting a $793 billion cut to Medicaid and a $295 billion cut to SNAP over the next decade.
Economic and Social Implications
The CBO projects that the OBBBA will increase the federal deficit by nearly $3 trillion over the next decade. Additionally, the bill is expected to result in 16 million more uninsured Americans by 2034, including 7.8 million due to Medicaid changes and 3.1 million due to alterations in the Affordable Care Act (ACA) marketplaces.
The proposed cuts to Medicaid and SNAP are anticipated to have widespread effects:
-
Healthcare Access: Hospitals, especially those serving low-income populations, may face increased uncompensated care costs due to a rise in uninsured patients.
-
Economic Impact: The reduction in Medicaid and SNAP funding could lead to job losses across various states, as these programs contribute significantly to local economies.
Political Reactions
The OBBBA has elicited strong reactions from various political figures:
-
Elon Musk: The entrepreneur has announced his intent to campaign against Republican lawmakers who support the bill, condemning it as reckless and threatening political retribution in upcoming primaries.
-
Governor Josh Shapiro: The Pennsylvania governor is actively campaigning against the bill, estimating that 11.8 million Americans, including 500,000 Pennsylvanians, would lose healthcare coverage if it passes.
Editorial Perspectives
Major publications have expressed concerns over the bill:
-
The New York Times: Criticized the bill for deepening fiscal irresponsibility by cutting taxes for the wealthy and increasing borrowing, with interest payments exceeding military expenditures.
-
The Washington Post: Warned that a Supreme Court ruling curtailing lower courts' ability to issue nationwide injunctions could weaken judicial checks on unconstitutional presidential actions.
Conclusion
The advancement of the OBBBA represents a significant legislative effort with far-reaching economic and social implications. As the Senate moves toward formal debate, the bill's potential impact on the federal deficit, healthcare access, and social welfare programs continues to fuel intense political discourse.