#OneBigBeautifulBill The One Big Beautiful Bill (OBBBA) is a proposed budget reconciliation bill in the US Congress. Here are the key points about the bill ¹ ²:
- *Provisions*: The bill extends the 2017 Tax Cuts and Jobs Act, reduces non-military government spending, and cuts spending on Supplemental Nutrition Assistance Program (SNAP) and Medicaid.
- *Tax Changes*:
- *SALT Deduction Cap*: Raises the state and local tax deduction cap to $40,000 for households with incomes up to $500,000.
- *Child Tax Credit*: Increases the child tax credit to $2,500 through 2028 and $2,000 after that.
- *No Tax on Tips and Overtime*: Exempts tips and overtime pay from taxation.
- *Healthcare*:
- *Medicaid Work Requirements*: Introduces work requirements for Medicaid recipients.
- *Medicaid Cuts*: Reduces Medicaid funding and imposes stricter eligibility requirements.
- *Economic Impact*:
- *National Debt*: The Congressional Budget Office (CBO) estimates the bill would add $2.4 trillion to the national debt over 10 years.
- *Job Creation*: Proponents argue the bill would create millions of new jobs and stimulate economic growth.
- *Controversy*: Critics argue the bill would disproportionately benefit the wealthy and large corporations, while hurting low-income families and increasing income inequality.
- *Status*: The bill passed the House of Representatives on May 22, 2025, and is currently being debated in the Senate ³.