President Donald Trump on Friday signed a sweeping tax cut and spending bill after Congress met his self-imposed Fourth of July deadline.
The 900-page package includes a $4.5 trillion extension of tax cuts first enacted during President Trump’s first term and delivers on several of his major campaign promises. He signed the measure during a celebratory event at the White House.
Roughly $350 billion is earmarked for national security initiatives, including funding to expand President Trump’s deportation agenda.
The bill also allows many workers to deduct tips and overtime pay from their taxable income. Most Americans earning $75,000 or less would be eligible for deductions of up to $6,000.
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Congress narrowly passed the legislation, dubbed the “big, beautiful bill," despite slim Republican majorities in both chambers. No Democrats voted in favor of it.
Democrats argued the bill would harm low-income Americans and widen economic inequality.
According to the Congressional Budget Office, the legislation would add $3.3 trillion to the federal deficit and result in nearly 12 million additional people losing health coverage.
One major provision imposes new Medicaid work requirements, set to take effect Dec. 31, 2026. States would be required to verify that able-bodied adults work at least 80 hours per month to maintain eligibility.
Beginning in fiscal year 2028, the bill also shifts the cost of food assistance programs such as SNAP to state governments.
