WASHINGTON, D.C. — In a major legislative win for Republicans, President Donald Trump on Friday signed into law the “One Big Beautiful Bill,” a sweeping domestic policy package that cements many of his 2024 campaign promises — including massive tax cuts and controversial social safety net reforms.
The $3.4 trillion package narrowly passed both the House and Senate along near party lines earlier this week. While Trump hailed the bill as “historic,” critics warn of severe impacts on health care access, the national debt, and working-class Americans.
Tax Cuts Extended, Overtime & Tips Now Tax-Free
The new law extends Trump’s signature 2017 tax cuts, which were set to expire later this year, and eliminates federal income taxes on tips and overtime pay — a popular pledge from the 2024 campaign.
According to the Congressional Budget Office, the tax cuts will reduce federal revenues by $4.4 trillion over the next decade, contributing significantly to the national debt.
Medicaid & Food Assistance Face Deep Cuts
To help offset the tax reductions, Republicans made deep cuts to Medicaid and food stamps (SNAP) — two of the nation’s largest safety net programs. The bill introduces strict work requirements for Medicaid recipients and further tightens eligibility rules.
Senate Republicans increased these cuts during final negotiations.
An analysis by the Center for American Progress estimates the changes could strip health coverage from over 10 million low-income Americans — especially those in rural areas and small states like New Hampshire, where officials warn up to 46,000 residents could lose their insurance.
“We’ll have people that will go hungry, that won’t be able to access assistance,” said Rep. Chris Pappas (D-NH), who is running for the U.S. Senate in 2026.
Immigration Crackdown & Border Security
The law also includes billions in funding for border security and codifies key elements of Trump’s immigration crackdown, such as expedited deportations and restrictions on asylum claims.
Campaign Trail Fallout Begins
The political battle over the bill has already spilled onto the 2026 campaign trail. Former Republican Sen. Scott Brown, who is seeking a return to the Senate, praised Trump for delivering on his promises.
“For somebody in politics to actually do what they said they would — that’s rare,” Brown told reporters after marching in the Brentwood, NH July 4th Parade.
Democrats, meanwhile, are hammering Republicans over the bill’s $4 trillion debt projection and its effect on middle- and low-income Americans.
“We hoped for a bipartisan conversation on taxes that focused on working people and small businesses,” Pappas said. “Instead, Republicans pushed through a partisan bill that gives billions to the ultra-wealthy.”
Read Also: New Trump-Backed Law Gives Tipped Workers and Hourly Employees Major Tax Breaks
While GOP-aligned groups cite strong support for the tax cut provisions, broader surveys show that nearly half of Americans believe the bill will hurt their family.
Your Turn: How Will This Law Affect You?
Do you receive Medicaid, SNAP, or work in food service or health care? We want to hear from you.
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