Explained: What Is Inside Donald Trump's 'One Big Beautiful Bill'

In a nail-biting 215-214 vote, the House passed US President Donald Trump's sweeping domestic policy bill early Thursday. All but two Republicans backed the massive budget package, named the "One Big Beautiful Bill". The vote followed an intense overnight session and a last-minute update to the bill aimed at winning over sceptics.

The over 1,000-page bill, aimed at solidifying Trump's economic and fiscal agenda, now moves to the Senate where further debates and amendments are expected.

What Is In Trump's "Big Beautiful" Bill?

The bill is packed with tax breaks, immigration crackdowns, military boosts, and major changes to healthcare and welfare programmes. While it promises benefits for working-class Americans, critics argue it could hurt the most vulnerable.

Here is what the bill includes:

Tax Reliefs, But Not For Everyone

Trump's new bill delivers a range of tax cuts, but not everyone benefits equally. It exempts tips and overtime pay from federal taxes.

Taxes on Social Security benefits remain, though seniors 65+ get a temporary $4,000 boost in their standard deduction from 2025 to 2028. The child tax credit rises to $2,500 per child until 2028, and the standard deduction increases to $16,000 for individuals and $32,000 for couples starting in 2025.

The estate tax exemption jumps to $15 million, benefiting the wealthy. Interest on loans for American-made cars becomes tax-deductible, and the State and Local Taxes (SALT) deduction cap is raised from $10,000 to $40,000 for taxpayers earning under $500,000.

Restrictions On Healthcare

The bill introduces changes to Medicaid, aiming to save nearly $700 billion by tightening eligibility rules.

From 2026, childless adults must work 80 hours a month, and all recipients must verify income twice a year. Medicaid funds for Planned Parenthood are also cut, limiting access to reproductive care.

New 'Trump Accounts' For Babies

Every baby born from 2024 to 2028 will get a $1,000 government-funded savings account. Parents can contribute up to $5,000 a year. The money can be used at age 18 for education, job training, or a first home, and fully accessed by age 30.

Food Aid (SNAP) Overhaul

The bill makes it harder to access food stamps. Able-bodied adults without dependents must now work until age 64, up from 54, to qualify. Parents with children over 7 must also meet work requirements. States face higher costs, now covering 5 per cent of benefits and 75 per cent of administrative expenses.

SNAP stands for the Supplemental Nutrition Assistance Programme. It is the official name for what most people call food stamps in the US.

Border Wall And Mass Deportation Plan

Trump's plan revives the US-Mexico border wall with a $46.5 billion budget. It also funds the deportation of up to 1 million immigrants per year and the detention of 100,000. A major hiring spree will add thousands of Border Patrol, customs, and ICE agents. For the first time, migrants will be charged a $1,000 fee to apply for asylum.

Military Expansion And Trump's Missile Shield

The bill earmarks $150 billion for defence, including $25 billion for Trump's ambitious "Golden Dome" missile shield, $34 billion to build new Navy ships, and $9 billion to improve troop pay, housing, and healthcare.

Student Loan Shake-up

Student loan repayments are streamlined into just two plans, but they may offer fewer benefits. It tightens rules on loan forgiveness for fraud or school closures and slaps a new tax on large university endowments (some up to 21 per cent).

Guns And Social Issues

Lawmakers will scrap a 1934 tax on gun silencers, a move backed by the National Rifle Association. Critics warn it could make it harder for police to trace gun violence.

Debt Ceiling Raised

To pay for these major changes, the bill raises the federal debt ceiling by $4 trillion. This means the government can borrow an extra $4 trillion to cover the new spending and programmes.

More Public Land Drilling And Mining

To raise money, the bill allows more drilling, mining, and logging on public lands and speeds up approval processes. It cuts royalty rates companies pay for oil, gas, and coal, reversing Biden's climate change efforts.

Is Trump's Bill Approved?

The Senate still needs to approve the bill, and if they make changes, it will return to the House for another vote.

Democrats strongly oppose the bill, especially the cuts to Medicaid and SNAP. House Democratic leader Hakeem Jeffries slammed it as a "reckless GOP tax scam."