Trump’s “Big Beautiful Bill” Explained: Tax Breaks, Border Funding & a $3T Deficit

The U.S. Senate is closing in on a final vote for what’s being called the “Big Beautiful Bill” — a massive Republican-backed tax and spending package that aims to cement former President Donald Trump’s fiscal agenda. With last-minute amendments being debated, the legislation is expected to return to the House of Representatives for final approval after the Senate vote.

While supporters frame it as a bold plan for economic growth and national security, critics warn that the bill heavily favors the wealthy, slashes social programs, and could inflate the federal deficit by over $3 trillion by 2034.

Key Provisions in the Senate’s Version of the Bill

Permanent Tax Cuts for High Earners

• Extends and expands the 2017 Tax Cuts and Jobs Act.
• Raises the standard deduction by:
  • $1,000 for individuals
  • $1,500 for heads of household
  • $2,000 for married couples
• These changes expire after 2028.

New Deductions for Workers and Seniors

• Overtime pay and tips will become tax-exempt during Trump’s term.
• Interest on loans for American-assembled cars will be deductible.
• Seniors over 65 with moderate incomes will receive a $6,000 tax deduction.

Massive Funding for Border Security

• $45 billion for ICE detention centers
• $14 billion for deportation efforts
• $50+ billion for new border barriers, likely including a wall
• Plans to hire 10,000 new ICE agents by 2029

Cuts to Social Safety Net Programs

• Medicaid and food stamp programs (SNAP) face significant funding reductions.
• New work requirements will be imposed.
• Experts estimate:
  • 10.6 million could lose healthcare
  • 8 million could lose SNAP benefits

Rollback of Green Energy Incentives

• Eliminates credits for:
  • Electric vehicles
  • Energy-efficient home upgrades
• Adds a new excise tax on wind and solar projects
• Industry groups warn of an 8–10% increase in electricity rates

State and Local Tax (SALT) Deduction Expansion

• SALT deduction cap raised from $10,000 to $40,000, but only until 2028
• A key concession to gain support from lawmakers in high-tax states

Raising the Debt Ceiling

• Authorizes the U.S. government to borrow an additional $5 trillion
• Treasury officials warn of potential default if the ceiling isn’t raised by August

Who Benefits Most?

Research from Yale University’s Budget Lab indicates:

• Top earners will see a 2.4% increase in income
• Lowest-income Americans may experience a 2.5% drop, due to safety net cuts

What’s the Financial Impact?

According to the Congressional Budget Office, the bill would add $3.3 trillion to the national deficit by 2034 — primarily due to the extension of earlier tax cuts. Fiscal conservatives in the House may demand changes, setting up a potential clash when the bill returns from the Senate.