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One Big Beautiful Bill Act signed into law on July 4, 2025

Here is a comprehensive summary of President Trump’s “One Big Beautiful Bill” (officially the One Big Beautiful Bill Act), signed into law on July 4, 2025:

Massive Tax Cuts

  • Permanently extends 2017 tax cuts.
  • Raises State and Local tax deduction (SALT) cap to $40K for incomes under $500K (reverts after 5 years).
  • New perks: no tax on tips, overtime, and Social Security benefits (via deduction).
  • Introduces “Trump Accounts” (tax-deferred savings for kids, until 2028).
  • Boosts child tax credit by $200.

Small‑Business Boost

  • Permanent 20→23% pass-through deduction.
  • Doubling of Section 179 (tax incentive that allows businesses to immediately deduct the full cost of qualifying equipment and property, rather than depreciating it over several years) expensing to $2.5 million, immediate write-offs.

Clean-Energy Rollbacks / Fossil Fuel Support

  • Phases out Biden-era clean-energy credits.
  • Reduces coal royalties; encourages oil/gas drilling and repeals silencer tax.

Medicaid and Supplemental Nutrition Assistance Program (SNAP) Cuts

  • ~12% Medicaid spending cuts with work requirements.
  • SNAP changes: stricter eligibility and increased state cost-sharing.

Planned Parenthood Funding Blocked (Temporarily)

  • Medicaid restrictions aimed at planning groups, including Planned Parenthood; court injunction blocks defunding until July 21.

Immigration and Defense Surge

  • Additional $150 billion for ICE, $150 billion plus for border enforcement and deportations.
  • Military investments like “Golden Dome” system, air-traffic control upgrades, Coast Guard funding.

Education: School Choice and Scholarships

  • Federally backed tax-credit scholarships (up to $1,700 full credit to nonprofit donors).
  • Federal support for private school choice.

Semiconductors and AI Incentives

  • Substantial tax breaks to chipmakers and semiconductor production.

Other Noteworthy Provisions

  • Exempts silencers (gun suppressors) from a $200 tax.
  • Opens bond financing for spaceports (launch sites).
  • Adds seafood sector support (via Alaskan carve-outs).
  • Creates National Garden of American Heroes with $40 million funding.