Sweeping tax-and-spending law (P.L. 119-21) making the 2017 individual tax cuts permanent, adding new deductions, and cutting Medicaid/ACA spending with new work requirements.
Passed via budget reconciliation — Senate 51-50 (VP Vance tie-break), House 218-214 — and signed July 4, 2025.
Positive impactsubstantiated
Made the 2017 individual tax cuts permanent and raised the child credit and SALT cap.
Permanent individual rates, a permanent $2,000 (temporarily $2,200) child credit, and a $40,000 SALT cap for incomes under $500,000.
Negative impactsubstantiated
CBO projects ~$3.3 trillion added to deficits over a decade.
Nonpartisan CBO scoring; absent action it could also trigger ~$490B in Medicare PAYGO cuts (2027–2034).
Negative impactprojected
Projected to cut Medicaid spending ~$1T and increase the uninsured by ~17 million by 2034.
CBO estimates ~10.5M lose Medicaid/CHIP and ~17M more uninsured by 2034 due to cuts, work requirements and ACA changes.
📊 Public opinion
The One Big Beautiful Bill Act
Approve32%
Disapprove46%
KFF found 64% unfavorable vs. 35% favorable — opposed nearly 2-to-1; support concentrated among MAGA Republicans (72%).