Senate Approves “One Big Beautiful Bill Act”
The Senate has officially passed the One Big Beautiful Bill Act, but the story behind it is anything but simple. Despite the headline suggesting benefit cuts were removed, the final legislation still includes significant reductions to Medicaid and food assistance programs, though some of the harshest proposals were softened to win over moderate Republicans.
Here’s a quick breakdown of what made it into the Senate version:
Tax Changes
- Trillions in tax cuts, mostly benefiting high-income earners
- No tax on tips and overtime pay up to certain thresholds
- Expanded child tax credit and a new temporary senior deduction of up to $6,000
Medicaid & SNAP Adjustments
- Work requirements for nondisabled adults without dependents remain, but exemptions were expanded for caregivers of children under 14
- Cuts to Medicaid and ACA funding total $930 billion over a decade, potentially leaving 12 million more uninsured by 2034
- States with high SNAP error rates will face gradual cost-sharing requirements, but the harshest penalties were delayed
Energy & Environment
- Clean energy tax credits for wind and solar are being phased out by 2027
- Fossil fuel incentives expanded, including mandated lease sales in Alaska and the Gulf of Mexico
Other Highlights
- $350 billion for border and national security, including mass deportation infrastructure
- Creation of Trump Savings Accounts for children
- A new $50 billion rural hospital fund added last minute to secure key votes
The bill passed by a razor-thin 51–50 vote, with Vice President JD Vance casting the tiebreaker. It now heads back to the House, where its fate remains uncertain.
Sources: CBS, Washington Examiner, USA Today, NBC New York, PBS, Journal of Accountancy