** Trump's "One Big, Beautiful Bill Act": Key Points and Impacts **
The "One Big, Beautiful Bill Act" (also known as the "megabill") is extensive legislation aimed at fulfilling many of President Donald Trump's campaign promises, from taxes to border security. It's important to note that the bill's impacts are still only estimates, and the final legislative text has not yet been finalized.
**Key Points and Their Characteristics:**
Medicaid Coverage Loss: An estimated 8 million recipients could lose Medicaid health insurance coverage. Republicans are targeting able-bodied adults and undocumented immigrants, but other beneficiaries could also be impacted. The bill introduces new work requirements for able-bodied recipients aged 19-64 without dependents (at least 80 hours of work per month) and mandates re-determinations of eligibility every 6 months. It also removes undocumented immigrants from Medicaid eligibility (approximately 1.4 million people).
SNAP Food Assistance Cuts: The Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) could be cut by roughly $230 billion over 10 years. This would narrow participation in the program, which currently serves approximately one in eight Americans monthly. The bill tightens eligibility requirements for adults aged 55-64 and children, and shifts some SNAP costs to states (at least 5% of benefit costs starting in 2028).
Extension of 2017 Trump Tax Cuts: The bill extends the 2017 tax cuts, which have been criticized for adding trillions of dollars to the deficit.
No Taxes on Tips and Overtime Pay: This fulfills Trump's campaign promises to exempt workers who receive tips from federal income taxes (for employees earning under $160,000 annually) and to eliminate taxes on overtime work. The tax break on tips would expire at the end of 2028.
Border Wall Funding: Provides $50 billion to resume construction of Trump's wall along the U.S.-Mexico border. The bill also includes $4 billion to hire an additional 3,000 Border Patrol agents and 5,000 new customs officers, as well as $2.1 billion for signing and retention bonuses. Furthermore, it allocates funds for 10,000 more Immigration and Customs Enforcement (ICE) officers and investigators. The bill also introduces a $1,000 fee for migrants seeking asylum.
Increased Defense Spending: Commits approximately $150 billion in defense spending, specifically for shipbuilding and the "Golden Dome" missile defense system.
Creation of MAGA Savings Accounts for Children: The bill would allow parents to open MAGA savings accounts for their children with a contribution limit of $5,000 annually. It includes a pilot program to start accounts with $1,000.
Raising the SALT Cap: The current proposal raises the deduction limit for state and local taxes from federal income tax filings from $10,000 to $30,000 for joint filers earning less than $400,000 per year.
Debt Limit Increase: Includes a $4 trillion increase to the statutory debt limit.
