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A sweeping 940-page domestic policy bill championed by President Donald Trump is barreling through Congress, with Republicans working through the weekend to finalize the legislation before Trump’s self-imposed July 4 deadline. The bill, loaded with GOP priorities, includes $3.8 trillion in tax cuts, deep cuts to safety net programs, and massive increases in funding for immigration enforcement and national defense.
The Senate is still negotiating key provisions, with some changes expected before the final vote. Democrats are unanimously opposed to the bill, calling it a dangerous reshaping of the federal government’s role in health care, taxation, and immigration.
Tax Cuts Take Center Stage
At the heart of the legislation is a permanent extension of Trump’s 2017 tax law, which otherwise would begin expiring at the end of the year. In addition to locking in existing tax rates, the bill adds new breaks — exempting tips, overtime pay, and auto loan interest from taxation, and expanding the child tax credit to $2,200 under the Senate version.
Seniors earning under $75,000 would receive a $6,000 deduction, and the state and local tax (SALT) deduction capwould temporarily rise to $40,000 for five years.
However, the benefits are unevenly distributed, according to the nonpartisan Congressional Budget Office:
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Wealthiest households: +$12,000/year
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Poorest households: –$1,600/year
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Middle-income taxpayers: +$500 to $1,500/year
$350 Billion for Immigration Enforcement
Trump’s “largest mass deportation plan in U.S. history” is a centerpiece of the bill, which would spend:
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$46 billion to build more U.S.-Mexico border wall
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$45 billion to fund 100,000 migrant detention beds
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$10 billion for grants to states that aid federal deportation efforts
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Hiring 10,000 new ICE officers with $10,000 signing bonuses
The bill also establishes the “BIDEN” fund (Bridging Immigration-related Deficits Experienced Nationwide), providing $3.5 billion to the attorney general for state-level immigration support.
Immigrants would face new fees, including when applying for asylum.
Medicaid and Food Stamps Targeted for Cuts
To offset tax breaks and new spending, the bill includes $1.5 trillion in cuts to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and green energy incentives.
Key changes:
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80-hour monthly work requirements for most Medicaid and SNAP recipients, including those up to age 65
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Parents of teens 14+ must work to retain benefits
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New $35 co-payments for Medicaid services
The CBO estimates:
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10.9 million people will lose health coverage
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3 million will lose access to food stamps
In response to concerns over rural hospitals, the Senate added a $25 billion Rural Hospital Transformation Program.
Additional GOP Priorities and Provisions
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“Trump Accounts”: $1,000 children’s savings accounts
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Planned Parenthood defunded
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New excise tax on university endowments
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$25 billion for the “Golden Dome” missile defense system
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$40 million for Trump’s “National Garden of American Heroes”
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$88 million for pandemic oversight
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Expanded radiation compensation for nuclear victims
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Mars and Artemis space exploration funding
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Ban on states regulating AI, tied to federal funding
The bill also raises the U.S. debt ceiling by $5 trillion, allowing the government to continue borrowing to pay existing obligations.
Dispute Over True Cost of the Bill
The CBO projects the House version would add $2.4 trillion to the deficit over 10 years. Senate Republicans argue that continuing existing tax breaks should not count as new costs and peg the true cost at $441 billion.
Outside experts, including the Committee for a Responsible Federal Budget, reject that accounting, saying the real cost is $4.2 trillion over the decade.
Outlook and Implications
With the Fourth of July deadline looming, GOP leaders are scrambling to secure final votes. Moderate Republicans are pushing back on Medicaid cuts and border enforcement provisions. Any major changes could threaten support from various factions within the party.
If passed, the bill would reshape the American economy and social safety net, expand immigration enforcement, and entrench many of Trump’s political priorities — all as he campaigns for re-election.
As one GOP aide said:
“This is Trump’s domestic legacy in legislative form.”
