Trump's "Big Beautiful Bill" Passed, What's Next?

On July 1st, 2025 Trump's BBB passed the senate. If you don't already know this bill extends Trump’s 2017 tax cuts, introduces federal funding for border and defense, implements Medicaid and SNAP work requirements, and removes a state-level AI regulation moratorium. There have been many debates between the conservative and democratic parties if this bill will be beneficial to the current state of the US. Of course we are on the conservative side of this argument, so let's dive right into the details.

Conflict Between Parties

Let's dive into the democratic view first. Democrats have criticized the bill for favoring corporations and the wealthy, cutting social programs like Medicaid and SNAP, and undermining judicial authority. They argued provisions like the AI regulation ban (later removed) and court contempt restrictions threatened democracy.

What's flawed with the democratic view on the BBB:

• Research suggests the bill benefits all income groups, with significant tax cuts for middle and lower-income families, though higher earners see larger dollar amounts.

  
  

• It seems likely that social program reforms encourage self-reliance, reducing dependency, though some argue they increase hardship.

  
  

• The evidence leans toward limiting judicial contempt powers as a check on overreach, but critics see it as undermining authority.

  
  

• The AI regulation ban, removed later, likely aimed to boost innovation, not threaten democracy, though its initial inclusion was controversial.

Read more about democratic opposition for the OBBBA here.

Let's talk about the conservative view now. Conservatives champion the OBBBA for delivering tax cuts, strengthening border security, and reforming welfare to promote self-reliance. They see it as a bold step toward economic growth, national security, and limited government, fulfilling Trump’s 2024 mandate.

Key Conservative Views on the OBBBA:

• Tax Cuts for All: Research shows tax breaks, like TCJA extensions and no tax on tips, boost take-home pay across income levels, with middle-class families gaining significantly.

  
  

• Strong Border Security: The $12 billion for the border wall and $25 billion for deportations align with 86% of Republicans supporting wall expansion.

  
  

• Welfare Reform: Work requirements for Medicaid and SNAP are seen as fostering dignity, reducing dependency by 68.8% in past reforms.

  
  

• Economic Freedom: Deregulation and fossil fuel support are viewed as driving energy independence and growth, though some worry about the $2.4–$4 trillion debt increase.

Read more about conservative support for the OBBBA here.

Key Highlights from the One Big Beautiful Bill (BBB)

Tax Policy Changes

• The bill permanently extends the 2017 Trump tax cuts, protecting families from a 26% hike. It introduces tax breaks on tips and overtime (through 2028), raises the SALT deduction cap to $40,000, and expands business relief—boosting pass-through deductions and restoring full bonus depreciation. Other notable changes include a $10,000 car loan interest deduction, an increase in the child tax credit to $2,200, and a higher estate tax exemption ($15 million).

Border & Immigration

• BBB allocates $12 billion to finish the border wall and $25 billion for fast-track deportations of certain criminal aliens. It also blocks 1.4 million undocumented immigrants from accessing taxpayer-funded healthcare.

Social Program Reforms

• Stricter Medicaid and SNAP work requirements aim to reduce federal spending. The bill also includes provisions to defund Planned Parenthood and block Medicaid funding for gender-affirming care nationwide.

Defense & Infrastructure

• With $150 billion earmarked for defense, the bill invests in shipbuilding, workforce training, and $12.5 billion to modernize the FAA’s outdated air traffic systems.

Energy & Environment

• The bill rolls back clean-energy tax credits from the IRA, denies benefits to companies tied to “foreign entities of concern,” and removes methane fees—favoring fossil fuel expansion and faster permitting.

Deregulation & Other Provisions

• It pushes for aggressive deregulation via $100M for OMB rule review and includes a court authority limitation that sparked legal debate. While an AI ban was initially proposed, it was removed after strong bipartisan pushback.

Seniors & Rural America

• Seniors get temporary tax deductions (up to $4,000 for those 65+) and potential Social Security relief. The bill also boosts funding for rural schools, forestry, and agricultural research.

What's Next For America?

Economic Growth and Challenges:

• Tax Cuts Driving Prosperity: Conservatives expect the OBBBA’s permanent extension of the 2017 Tax Cuts and Jobs Act, no tax on tips/overtime, and increased child tax credit to $2,200 to boost family incomes by $13,300 and wages by $11,600, per the Council of Economic Advisers. Small business relief, like the 23% Section 199A deduction, is seen as fueling job creation.

• Debt Concerns: The Congressional Budget Office estimates a $2.4–$4 trillion debt increase by 2034, potentially $5 trillion if temporary provisions are extended. Fiscal conservatives, like Rep. Chip Roy, warn of a “debt bomb,” which could strain future budgets and worry investors.

Border Security and Immigration:

• Stronger Borders: The $12 billion for the border wall and $25 billion for deportations are expected to sustain Trump’s border security gains, with conservatives citing a drop in illegal crossings since January 2025. Rep. Michael Guest notes this as a “win for every American”.

• Social Tensions: Deportation efforts may face legal and public pushback, potentially escalating debates over immigration policy.

Social Program Reforms:

• Self-Reliance Push: Work requirements for Medicaid and SNAP aim to reduce dependency, mirroring 1990s welfare reforms that cut rolls by 68.8%. Conservatives see this as promoting dignity, but critics warn 10.9 million could lose health coverage, raising social equity concerns.

Energy and Infrastructure:

• Energy Dominance: Scaling back clean-energy credits and streamlining fossil fuel permits are expected to lower energy costs and boost production, aligning with conservative goals of energy independence.

• Infrastructure Upgrades: $12.5 billion for FAA modernization is seen as critical for aviation efficiency, with Airlines for America urging swift passage.

Political and Social Outlook:

• Conservative Momentum: With Republican control of Congress, conservatives anticipate further America First policies, like deregulation and defense spending ($150 billion), strengthening national security.

• Polarization Risks: Democratic opposition, with Sens. Schumer and Hickenlooper decrying the bill as a betrayal, signals ongoing partisan gridlock. A Pew Research poll shows 49% of Americans oppose the bill, suggesting public division.

Conclusion:

The One Big Beautiful Bill Act (OBBBA, H.R.1), passed by the Senate on July 1, 2025, marks a pivotal moment for America, advancing conservative priorities of economic growth, border security, and limited government. Conservatives see its tax cuts, like TCJA extensions and no tax on tips, as boosting family incomes by $13,300 Ways and Means, while $37 billion for border security strengthens national safety Statista. Work requirements for Medicaid and SNAP align with self-reliance values, echoing 1990s welfare reform successes CBO. However, the $2.4–$4 trillion debt increase raises fiscal concerns among some conservatives CRFB. As the House prepares to vote by July 4, 2025, the bill’s implementation will likely drive economic gains and security but deepen partisan divides, shaping America’s trajectory into 2026.