House Narrowly Passes $3.4 Trillion “One Big Beautiful Bill Act” Before July 4
Trump-Backed Bill Set to Reshape U.S. Economy with Tax Cuts, Defense Boosts, and Major Medicaid Cuts

Washington, July 3: After months of speculation, closed-door haggling, and a last-minute wave of lobbying, the U.S. House of Representatives has passed what could become the most consequential fiscal package of the Trump administration’s second term. The legislation—officially titled the One Big Beautiful Bill Act—cleared the chamber by a razor-thin margin of 218 to 214 late Wednesday, locking in a vision of federal governance that is as sweeping as it is divisive.
The timing is no coincidence. With President Donald Trump expected to sign the bill on July 4, Republicans are staging the moment as a symbolic act of economic patriotism—linking their agenda to the founding myths of American independence. Whether the policy holds up under pressure, domestically or abroad, is another matter.
The Anatomy of a Republican Ambition
At face value, the bill reads like a greatest-hits compilation of modern conservative priorities: permanent tax cuts, large-scale border and defense spending, and a sharp retraction from key pillars of the post-Obama welfare state.
At its heart lies a full extension of the 2017 tax reform law, alongside new incentives tailored to working families and high earners alike. Tips and overtime pay will now be tax-exempt. The often-contentious SALT deduction cap has been raised dramatically—up to $40,000—largely benefiting households in high-tax states. And the introduction of “Trump Accounts”, a new savings instrument offering families $1,000 per child annually, reflects an effort to market the package as middle-class friendly.
But that’s only one side of the ledger. The other is steeper. The bill commits $170 billion to immigration enforcement, including expanded ICE funding and additional physical barriers along the southern border. An additional $160 billion has been allocated for defense modernization—specifically drone technology and missile shield development.
To finance these moves, Republicans have opted for aggressive cuts: $1 trillion pulled from Medicaid, and $185 billion from SNAP, or food assistance. Work requirements will become tougher. States, many of them already financially strained, will now be expected to foot a greater share of healthcare costs. By the time these policies are fully implemented, the Congressional Budget Office projects that up to 12 million Americans could lose Medicaid coverage.
A Budget With Global Ripples
Economists have not been quiet. Estimates suggest the bill will inflate the U.S. deficit by $3.3 to $4 trillion over the next decade. That number alone has triggered alarms at Moody’s, the IMF, and among fiscal conservatives who had previously aligned with Trump’s economic playbook.
The numbers matter. So does the message. In an era of escalating geopolitical rivalry and growing climate urgency, the U.S. has now signaled a pivot away from multilateral responsibility—particularly on emissions. Several core clean energy tax credits, established under the Inflation Reduction Act, have been rolled back or removed entirely. Analysts in Europe and East Asia are already reading this as a sign that America’s climate leadership is once again in flux.
Political Victory, Public Uncertainty
Republicans, unsurprisingly, are calling it a watershed moment. Speaker Mike Johnson praised the bill as “a decisive answer to a broken economic model.” Trump himself is reportedly preparing a July 4 address to cast the bill as a victory not just for conservatives, but for “American families, American jobs, and American strength.”
But on the other side of the aisle, the reaction has been swift and blistering. House Minority Leader Hakeem Jeffries called it “a declaration of war on working-class Americans,” while climate advocates warned that the rollback of green provisions could derail global climate goals just as they were beginning to gain traction.
Even among voters, the response is fractured. A Pew Research Center survey this week found nearly half of Americans oppose the bill, while only 29% support it. The remaining 22% either don’t know or say it’s too complex to judge—a telling sign of how tangled U.S. economic policy has become.
Legal Pushback and Policy Fallout
Several governors, including those of California, New York, and Illinois, have announced their intention to sue over parts of the legislation—particularly the Medicaid funding formula, which they argue shifts federal obligations onto already-overburdened states. Legal scholars expect challenges to focus on constitutional grounds, as well as administrative overreach.
In Washington, that’s hardly a deterrent. The political gamble has already been made. Trump and his allies now hope that time, and economic tailwinds, will tilt public opinion in their favor.
But there’s risk in the bet. With the next general election just over a year away, the durability of this legislative victory is far from certain. Much of its impact will unfold slowly—in courtrooms, statehouses, and family budgets. That slow churn, as always in American politics, is where legacy is ultimately decided.
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Amit Singh is a Reporting Fellow at Hindustan Herald, where he covers the intricate dynamics of Indian politics and global geopolitical shifts. Currently pursuing his studies at Delhi University, Amit brings a keen analytical mind and a passion for factual reporting to his daily coverage, providing readers with well-researched insights into the forces shaping national and international affairs.