House Races to Pass Trump's Ambitious "One Big Beautiful Bill Act" by July 4

The U.S. House of Representatives is expediting efforts to pass President Donald Trump's "One Big Beautiful Bill Act" (OBBBA) by July 4, following its narrow approval in the Senate. The legislation aims to extend the 2017 tax cuts, reduce funding for social programs, and increase spending on military and border enforcement.

The OBBBA proposes several significant changes:

• Tax Reforms:
• Permanently extends individual tax rates established in the 2017 Tax Cuts and Jobs Act, set to expire at the end of the year, at an estimated cost of $4 trillion.
• Introduces a new tax deduction for tips and overtime pay for workers earning less than $150,000.

• Increases the cap on the state and local tax (SALT) deduction to $40,000 for taxpayers making less than $500,000, with the cap reverting back to $10,000 after five years, at an estimated cost of $142 billion.

• Spending Adjustments:

• Allocates an additional $150 billion in defense spending, focusing on uncrewed drones and other military technologies.
• Provides $70 billion for border security, including $46.5 billion for border barriers and funds for hiring additional Border Patrol and Customs and Border Protection officers.
• Imposes cuts to social programs, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP), by shifting more financial responsibility to states and implementing stricter work requirements.

The Congressional Budget Office (CBO) estimates that the OBBBA would add approximately $3.3 trillion to the national debt over the next decade, increasing the debt-to-GDP ratio to 130%. The bill is projected to reduce federal revenue by $4.5 trillion over the same period. While middle-income taxpayers might see tax breaks ranging from $500 to $1,500, the wealthiest households could benefit significantly more, with average income increases of $32,265.

The bill has sparked significant partisan debate. Democrats are unified in opposition, criticizing the proposed cuts to social programs and clean energy incentives. Within the Republican Party, divisions have emerged, particularly from the House Freedom Caucus, expressing concerns over the bill's projected addition to the national debt. Speaker Mike Johnson is working to consolidate support among Republicans to meet the impending deadline.

The OBBBA's proposed over $1.1 trillion in healthcare spending cuts, notably reducing Medicaid coverage by imposing stricter work requirements, could leave nearly 12 million Americans uninsured by 2034. The legislation includes provisions to fund a national private school voucher program through tax breaks for wealthy Americans, potentially diverting essential funding away from public schools that serve 90% of American students. The bill curtails tax credits for solar and wind projects, potentially impacting future clean energy investments, while extending incentives for fossil fuels and other energy sources.

This legislative effort mirrors the 2017 Tax Cuts and Jobs Act but introduces more extensive spending cuts and tax reforms. The current bill's scale and scope are unprecedented, aiming to fulfill many of President Trump's campaign pledges.

As the House approaches the vote, the outcome remains uncertain, with internal party divisions and public opposition posing significant challenges to the bill's passage.