Bill faces significant hurdles and opposition
One Big Beautiful Bill Act: A Controversial Legislation in the U.S. Congress
Washington, June 6, 2025 - The U.S. House of Representatives passed the "One Big Beautiful Bill Act" (OBBBA) on May 22, 2025, a sweeping piece of legislation championed by President Donald Trump as the cornerstone of his second-term agenda. Currently under consideration in the Senate, the bill faces significant hurdles and opposition.
Key Provisions of the Bill
Tax Cuts: Permanently extends the 2017 Tax Cuts and Jobs Act, including lower tax rates and higher standard deductions.
SALT Deduction: Increases the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for married couples earning less than $500,000.
Medicaid and SNAP Cuts: Reduces Medicaid funding by $700 billion and SNAP by $300 billion, introducing work requirements for able-bodied recipients.
Trump Savings Accounts: Establishes savings accounts for newborns with up to $5,000 annually and $1,000 in federal seed money for babies born between 2025-2028.
Clean Energy Credits Repeal: Phases out or eliminates most clean energy tax credits from the 2022 Inflation Reduction Act.
Border Security: Allocates $45 billion for border security and immigration enforcement.
Business Relief: Increases the Section 199A deduction from 20% to 23% and reinstates immediate deductions for R&D expenses.
Advantages: The bill provides significant tax relief for middle and high-income individuals, potentially boosting purchasing power. Small businesses and innovative companies will benefit from enhanced Section 199A and R&D deductions. Trump Savings Accounts aim to support families with financial security and education. Increased funding for border security addresses concerns about immigration enforcement.
Disadvantages: The bill’s most controversial aspect is its cuts to Medicaid and SNAP, potentially leaving 14 million people without health insurance and 11 million without food assistance. Tax cuts primarily benefit the wealthy, with low-income households potentially facing a 4% income reduction by 2033. The repeal of clean energy credits could jeopardize 686,000 jobs and harm environmental efforts. The Congressional Budget Office (CBO) estimates the bill could add $2.4 to $5 trillion to the national debt over the next decade.
Senate Challenges: The bill faces mixed reception in the Senate. Senators like Rand Paul and Rick Scott have raised concerns about its cost and debt increase. Elon Musk has publicly criticized it as a “disgusting abomination,” arguing it undermines his cost-cutting goals. Some Republicans also worry about the impact of Medicaid cuts and the repeal of energy credits, particularly in red districts.
Conclusion: The One Big Beautiful Bill Act could reshape the U.S. economy and social framework. While its tax cuts and business incentives have garnered support, concerns over social service cuts, environmental impacts, and the national debt loom large. All eyes are on the Senate as it debates this transformative legislation.
(For more news apart from One Big Beautiful Bill Act: A Controversial Legislation in the U.S. Congress, stay tune to Rozana Spokesman)
