#OneBigBeautifulBill

American leader Donald Trump signed the law during a picnic for Independence Day at the White House.

As assessed by Axios, the passage of the law, which will transform federal fiscal policy in the USA in the coming years, is a huge achievement for Donald Trump and Republicans in Congress.

Donald D. Trump himself emphasized that his administration kept its promise and stated that the law is his biggest victory to date.

The new law has been formally named the One Big Beautiful Bill Act, as it combines many of D. Trump's tax promises – including the permanent establishment of the tax cuts introduced in 2017 for 10 years, as well as the exemption from taxes on tips, overtime earnings, and Social Security benefits – with deep cuts to social spending including state health insurance for the lowest earners (Medicaid), subsidies for private insurance under Obamacare, and food stamp programs (SNAP). Additionally, the proposal includes increased funding for deportations of migrants and border security, imposes high fees for asylum seekers, and contains a one-time increase in defense spending of $150 billion, which is expected to raise the defense budget to $1 trillion.

According to the analysis by the Congressional Budget Office (CBO), despite the anticipated cuts, the proposal will contribute to an increase in the budget deficit of $3.8 trillion over 10 years. The CBO also forecasts that the Senate version of the proposal will cause nearly 12 million Americans to lose their health insurance.

According to projections from the Yale Budget Lab, the changes will benefit the top 20% of earners in America (those earning over $120,000 a year) the most. Incomes for this group will rise by nearly 2.2% ($5,700), while the law will hit the bottom 20% of earners the hardest, reducing their incomes by nearly 3% ($700).