On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law. The sweeping legislation makes permanent the 2017 Trump-era tax cuts and introduces new benefits, including tax-free overtime pay, deductions for tip income (up to $25,000), and expanded child and senior tax credits. It also raises the SALT deduction cap to $40,000 through 2029 and increases the estate tax exemption to $15 million per individual.

Newborns will automatically receive government-backed savings accounts, dubbed “Trump Accounts.”

To offset some costs, the bill reduces funding for Medicaid, SNAP, and other federal aid programs. It also redirects funds to defense, border enforcement, NASA, and infrastructure like air traffic control.

The Congressional Budget Office estimates OBBB will add $3.4 trillion to the deficit over the next decade. Supporters claim it boosts take-home pay and supports working families, while critics say it benefits the wealthy and worsens inequality.

Political efforts are underway to rebrand it as the “Working Families Tax Cut,” though skepticism remains.

While OBBB delivers tax relief to many, its long-term impact on the economy, deficit, and social safety net remains deeply contested.