President Donald Trump has officially signed a sweeping tax and spending bill into law — just in time to meet his self-imposed Fourth of July deadline. The nearly 900-page legislation, passed by razor-thin Republican majorities in Congress, cements trillions in tax cuts, enacts major safety net rollbacks, and provides billions in new funding for defense, border enforcement, and even a “National Garden of American Heroes.”

While Democrats stood united against the bill, the GOP’s lockstep support — including a tiebreaking vote from Vice President JD Vance in the Senate — pushed the legislation over the finish line. The House passed the final version 218-214 on Thursday.

Here’s a full breakdown of what’s inside the bill and when key provisions take effect:

$4.5 Trillion in Tax Cuts – with Perks for Business and the Wealthy

  • The bill makes Trump’s 2017 tax cuts permanent, locking in existing income tax brackets.
  • Introduces temporary deductions for tips, overtime, and auto loans.
  • Seniors earning under $75,000 will get a $6,000 tax deduction, in line with Trump’s pledge to end taxes on Social Security (though that goal is not fully met).
  • The Child Tax Credit rises from $2,000 to $2,200, though many lower-income families won’t qualify for the full amount.
  • The SALT deduction cap is lifted to $40,000 for five years, a win for residents of high-tax states like New York.
  • Businesses benefit from 100% immediate expensing of equipment and R&D costs — a measure GOP lawmakers say will boost growth.

But while the wealthy stand to gain around $12,000/year, the poorest Americans will lose around $1,600 annually, largely from benefit cuts, according to the Congressional Budget Office (CBO).

Billions for Border Security, Deportations, and Missile Defense

  • A total of $350 billion is allocated to Trump’s immigration and security agenda, including:
    • Expansion of the US-Mexico border wall
    • 100,000 migrant detention beds
    • Hiring of 10,000 ICE officers and a surge in Border Patrol agents, each with $10,000 signing bonuses
    • 1 million deportations per year targeted
  • Immigrants will now face new fees, including for asylum applications.
  • The Pentagon gets billions for shipbuilding, weapons systems, and troop support.
  • A whopping $25 billion goes to developing the Golden Dome missile shield.
  • $1 billion in Pentagon funding is also earmarked for border security.

Cuts to Medicaid, SNAP, and Safety Net Programs

To offset tax cuts and new spending, Republicans are slashing public assistance:

  • New work requirements for Medicaid and SNAP (food stamps):
    • 80 hours/month, including for older adults up to 65
    • Parents of children over 14 must also work to receive aid
  • A $35 co-pay introduced for Medicaid patients
  • 3 million people expected to lose food stamps;
    11.8 million may lose Medicaid by 2034, per CBO estimates
  • States will share SNAP costs if their error rates exceed 6%, starting 2028
  • Exception granted to Alaska, with the highest error rate (~25%)

Clean Energy Tax Breaks Slashed

  • Wind and solar credits from Biden’s 2022 climate law are rolled back
  • EV tax credits will now expire Sept. 30, 2025, instead of 2032
  • A credit for metallurgical coal (used in steelmaking) is expanded
  • Democratic Sen. Ron Wyden called it a “death sentence” for renewables

‘Trump Accounts,’ Remittance Tax, and Culture Wars

  • Launches “Trump Accounts”: $1,000 Treasury-funded savings accounts for children
  • Funds Trump’s National Garden of American Heroes with $40 million
  • Adds a 1% tax on remittances — money sent abroad by US residents
  • Excise tax on university endowments introduced
  • Gun silencer tax eliminated
  • Planned Parenthood and other abortion providers barred from Medicaid payments for 1 year
  • Expands Radiation Exposure Compensation Act (championed by Sen. Josh Hawley)

Space, Pandemic Prep, and AI Policy

  • $88 million for pandemic response oversight
  • Billions allocated to NASA’s Artemis moon mission and Mars exploration
  • $10 billion per year for rural hospitals over 5 years — doubled from earlier drafts
  • A controversial AI regulation moratorium was stripped from the final bill after backlash from GOP governors and a 99-1 Senate vote

Debt Limit Raised, But Costs Still Debated

  • Debt ceiling increased by $5 trillion to ensure US can pay existing obligations
  • CBO estimates the bill adds $3.3 trillion to the deficit over 10 years
  • Senate Republicans argue tax cuts shouldn’t count as “new costs” because they reflect current policy — claiming the bill actually reduces the deficit by nearly $500 billion
  • The Committee for a Responsible Federal Budget mocked this approach as “accounting gimmicks that would make Enron executives blush”

President Trump’s new law marks a major shift in tax and social policy, packed with sweeping fiscal and ideological priorities. Supporters hail it as a pro-growth, pro-security win for the country. Critics call it fiscally reckless and socially damaging.

With Republicans already touting the bill as a key 2026 campaign win — and Democrats warning of rising inequality and service cuts — the fight over this legislation is far from over.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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