Tax cuts, deportations and more: What’s in the 900-page Trump bill that’s set to become ‘beautiful’ law after passing Congress?

The United States House of Representatives on Thursday approved President Donald Trump’s sprawling tax and spending legislation, sending it to his desk just ahead of the Republican-imposed July 4 deadline.

Spanning nearly 900 pages, the legislation consolidates tax breaks, steep spending cuts, and a host of Republican priorities, including boosted defence funding and aggressive immigration enforcement plans.

A tight vote and partisan divide

The Senate passed the bill with Vice President JD Vance casting the tie-breaking vote. The House, having earlier passed a version in May with a one-vote margin, approved the final version 218-214. Democrats stood united in opposition but lacked the numbers to block the measure.

Tax cuts made permanent

Republicans argued that the bill was essential to avoid a tax hike when previous cuts expire in December. The legislation includes approximately $4.5 trillion in tax reductions.

The bill makes Trump’s original tax rates permanent and temporarily adds deductions for tips, overtime, and auto loans. Older adults earning below $75,000 will receive a $6,000 deduction. The child tax credit rises from $2,000 to $2,200, though lower-income families will not fully benefit.

The SALT deduction cap rises to $40,000 for five years—a win for high-tax states like New York.

Business breaks and impact on income groups

Businesses will benefit from immediate write-offs on equipment and research costs. However, analysis by the Congressional Budget Office (CBO) shows that the wealthiest households would gain $12,000 while the poorest could lose around $1,600 annually due to cuts in Medicaid and food assistance.

Immigration enforcement and border spending

The bill allocates $350 billion to Trump’s border security plans, including the U.S.-Mexico border wall and 100,000 migrant detention beds.

Funds also cover hiring 10,000 ICE officers with $10,000 bonuses and additional Border Patrol personnel, aiming to deport 1 million people annually.

Immigrants will pay new fees, including for asylum applications, to offset these expenses.

Defence and strategic investments

The Pentagon receives significant allocations for shipbuilding, munitions, servicemember welfare, and $25 billion for the Golden Dome missile defence system. An additional $1 billion is reserved for border security.

Cuts to Medicaid and food assistance

Republicans have proposed scaling back benefits to “rightsize” the safety net. New 80-hour-a-month work requirements will apply to many Medicaid and food stamp recipients up to age 65, including parents of teenagers.

A $35 co-payment may be levied on Medicaid users. While most beneficiaries already work, the CBO projects 11.8 million could lose health coverage and 3 million may become ineligible for food stamps by 2034.

States will be required to share SNAP costs from 2028 if payment error rates exceed 6%. A delay in cost-sharing was granted for high-error states like Alaska, following pressure from Senator Lisa Murkowski.

Rollback of clean energy tax breaks

The legislation aims to reverse key clean energy incentives from President Joe Biden’s 2022 climate law.

Senator Ron Wyden termed it a “death sentence for America’s wind and solar industries.” Tax credits for electric vehicle purchases now expire in September instead of 2032.

Conversely, metallurgical coal used in steel production will qualify for production tax credits.

New programmes and excise taxes

The bill introduces “Trump Accounts” for children with a potential $1,000 Treasury deposit and allocates $40 million to establish the “National Garden of American Heroes.”

New taxes include a 1% levy on remittances and an excise tax on university endowments. A $200 tax on gun silencers and certain firearms is eliminated.

Medicaid funding is barred for one year from providers that offer abortion services, primarily affecting Planned Parenthood.

Additional provisions

Senator Josh Hawley’s expansion of the Radiation Exposure Compensation Act was included. Billions are earmarked for NASA’s Artemis moon mission, Mars exploration, and $88 million for pandemic response accountability.

A provision to increase the national debt ceiling by $5 trillion also made it into the bill.

Fiscal impact and accounting debate

The CBO estimates the bill could raise the federal deficit by $3.3 trillion between 2025 and 2034. However, Senate Republicans argue that existing tax cuts should not be counted as new costs.

Under their calculation, the bill could cut deficits by nearly $500 billion. Critics, including the Committee for a Responsible Federal Budget, dismissed the math as a deceptive “accounting gimmick.”