In a landmark victory for President Donald J. Trump’s economic agenda, the U.S. House of Representatives passed the “One Big Beautiful Bill” on May 22, 2025, by a razor-thin margin of 215-214. The sweeping legislation, which fulfills key campaign promises, makes permanent the 2017 Tax Cuts and Jobs Act, eliminates taxes on tips and overtime, provides tax relief for seniors, and funds critical border security measures. The bill now heads to the Senate, where it faces further debate before reaching the President’s desk.

Key Provisions of the One Big Beautiful Bill

The legislation, officially titled the “One Big Beautiful Bill Act,” is a comprehensive package addressing taxes, border security, healthcare, and economic growth. Its core components include:

• Permanent Extension of 2017 Tax Cuts: The bill locks in the 2017 Tax Cuts and Jobs Act, preventing a 22% tax hike that would have hit taxpayers in 2026. The average American family will save approximately $1,700 annually, equivalent to nine weeks of groceries, while a family of four will see an additional $1,300 in tax relief.

[](https://waysandmeans.house.gov/2025/05/22/passed-the-one-big-beautiful-bill-moves-one-step-closer-to-president-trumps-desk/)

• No Tax on Tips: Tipped workers, including waiters, bartenders, and hairstylists, will see a 100% elimination of income taxes on tips through 2028, benefiting over 4 million workers with an average tax cut of $2,000 per individual.

[](https://waysandmeans.house.gov/2025/05/21/the-one-big-beautiful-bill-delivers-on-president-trumps-priorities/)

• No Tax on Overtime: The bill eliminates taxes on overtime pay for over 80 million hourly workers, excluding highly compensated employees, through 2028. This could save workers up to $1,750 annually, particularly benefiting professions like nursing, law enforcement, and manufacturing.

[](https://waysandmeans.house.gov/2025/05/21/the-one-big-beautiful-bill-delivers-on-president-trumps-priorities/)[](https://www.foxnews.com/politics/trumps-big-beautiful-bill-wins-support-from-police-overtime-tax-elimination)

• Tax Relief for Seniors: Seniors aged 65 and older with incomes below $75,000 (single filers) or $150,000 (joint filers) will receive an additional $4,000 deduction through 2028, on top of the existing standard deduction. This aims to ease financial burdens for middle- and low-income retirees.

[](https://www.foxnews.com/politics/trump-budget-bill-big-help-seniors-top-house-tax-writer-says)[](https://www.cbsnews.com/news/social-security-income-tax-benefits-trump-one-big-beautiful-bill/)

• No Tax on Auto Loan Interest: Americans purchasing U.S.-made vehicles can deduct up to $10,000 in auto loan interest through 2029, incentivizing domestic manufacturing and saving families hundreds of dollars annually.

[](https://finance.yahoo.com/news/the-house-passed-trumps-big-beautiful-bill-heres-how-it-affects-taxpayers-and-businesses-110041500.html)

• Expanded Child Tax Credit: The Child Tax Credit increases temporarily from $2,000 to $2,500 per child through 2028, benefiting over 40 million families. The standard deduction will also rise by $1,000 for individuals, $1,500 for heads of households, and $2,000 for married couples.

[](https://www.cbsnews.com/news/whats-in-trumps-one-big-beautiful-bill-medicaid-taxes/)

• Border Security Funding: The bill allocates $175 billion for immigration enforcement, including $50 billion for border wall construction (701 miles of primary wall, 900 miles of river barriers, and 629 miles of secondary barriers), $45 billion for ICE detention facilities, and $14 billion for deportation operations, alongside hiring 10,000 new agents by 2029.

[](https://www.theguardian.com/us-news/2025/may/22/what-is-trump-big-beautiful-bill)

• Medicaid and SNAP Reforms: The legislation introduces work requirements for Medicaid expansion enrollees starting in December 2026 and tightens SNAP eligibility, potentially reducing coverage for 8.6 million Medicaid recipients and 3 million SNAP beneficiaries.

[](https://federalnewsnetwork.com/congress/2025/05/house-republicans-launch-an-all-nighter-to-try-to-pass-trumps-big-bill/)

• Green Energy Rollbacks: The bill phases out Biden-era clean energy tax credits, including a $7,500 electric vehicle credit, and imposes annual registration fees of $250 for EVs and $100 for hybrids.

[](https://www.cbsnews.com/news/whats-in-trumps-one-big-beautiful-bill-medicaid-taxes/)

• Small Business and Manufacturing Support: The 199A small business deduction is expanded to 23% and made permanent, projected to create 1 million jobs and generate $750 billion in economic growth. The bill also restores 100% immediate expensing for factories and equipment.

[](https://waysandmeans.house.gov/2025/05/12/the-one-big-beautiful-bill-delivers-on-president-trumps-priorities-to-restore-and-expand-trump-era-growth-and-relief-for-families-workers-and-small-businesses/)

Impact on American Families and Workers

The bill’s tax provisions are expected to deliver significant financial relief. For example, a single mother working as a waitress in Nevada could save $5,646 annually from the no-tax-on-tips policy, increased Child Tax Credit, and standard deduction. A New Jersey taxi driver working overtime could see an additional $1,970 in savings from the overtime tax exemption, senior deduction, and auto loan interest deduction.

[](https://waysandmeans.house.gov/2025/05/21/who-benefits-the-one-big-beautiful-bill-delivers-tax-relief-for-workers/)

The Congressional Budget Office (CBO) estimates the tax cuts will add $3.8 trillion to federal deficits over the next decade, though supporters argue the economic growth—projected at 3.3–3.8% short-run GDP increase—will offset costs. The bill is expected to raise wages by up to $11,600 per worker and create 7.4 million jobs, including 1.1 million in manufacturing.

[](https://waysandmeans.house.gov/2025/05/21/who-benefits-the-one-big-beautiful-bill-delivers-tax-relief-for-workers/)[](https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/)

However, the temporary nature of some provisions, such as the no-tax-on-tips and overtime exemptions expiring in 2028, has drawn criticism. Democrats argue that the bill disproportionately benefits wealthier households, with the CBO noting that high-income taxpayers could see a 4% increase in resources by 2027, while lower-income households may face a 4% drop by 2033 due to reduced benefits.

[](https://www.theguardian.com/us-news/2025/may/22/what-is-trump-big-beautiful-bill)

Political and Public Reactions

The bill’s passage sparked jubilation among Republicans, with the House floor erupting in cheers. Social media platforms like X lit up with posts celebrating the victory, with users like @AmericaPapaBear proclaiming, “America First!!! No tax on tips or overtime, tax relief for seniors, and more!” President Trump urged swift Senate action, stating, “There is no time to waste!”

[](https://www.usatoday.com/story/news/politics/2025/05/22/house-passes-trump-bill-congress/83747173007/)

Democrats, however, fiercely opposed the bill, calling it a “regressive tax scam.” House Minority Leader Hakeem Jeffries, D-N.Y., vowed to use the bill’s Medicaid and SNAP cuts as a rallying point for the 2026 midterms. “This bill prioritizes the wealthy over working families,” Jeffries said on X.

[](https://www.bbc.com/news/articles/c0eqpz23l9jo)

Police officers and tipped workers have voiced strong support. The National Police Association highlighted the overtime tax exemption as a boon for law enforcement retention, with officers noting it could help senior officers stay longer to mentor younger colleagues. Uber CEO Dara Khosrowshahi praised the no-tax-on-tips provision, calling it a “big win” for drivers and couriers.

[](https://www.foxnews.com/politics/trumps-big-beautiful-bill-wins-support-from-police-overtime-tax-elimination)[](https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/)

Controversies and Challenges

The bill faced intense negotiations, with last-minute concessions securing its passage. Blue-state Republicans, particularly from New York and California, successfully pushed for a $40,000 cap on the State and Local Tax (SALT) deduction, up from $10,000, benefiting middle-class homeowners in high-tax states. However, two Republicans, Reps. Warren Davidson and Thomas Massie, voted against the bill, citing deficit concerns, while Rep. Andy Harris voted present.

[](https://finance.yahoo.com/news/the-house-passed-trumps-big-beautiful-bill-heres-how-it-affects-taxpayers-and-businesses-110041500.html)[](https://federalnewsnetwork.com/congress/2025/05/house-republicans-launch-an-all-nighter-to-try-to-pass-trumps-big-bill/)

The exclusion of a full tax break on Social Security benefits, a key Trump campaign promise, has drawn scrutiny. Due to the Congressional Budget Act’s Byrd Rule, which prohibits changes to Social Security via reconciliation, the bill instead offers the $4,000 senior deduction. Critics, including the National Committee to Preserve Social Security and Medicare, called this a “bait and switch,” warning that it doesn’t fully address seniors’ tax burdens.

[](https://www.cbsnews.com/news/social-security-income-tax-benefits-trump-one-big-beautiful-bill/)

Medicaid and SNAP reforms have also sparked controversy. The CBO estimates that 8.6 million people could lose Medicaid coverage and 3 million could lose SNAP benefits due to work requirements and stricter eligibility checks. Democrats argue these cuts disproportionately harm low-income families and seniors.

[](https://federalnewsnetwork.com/congress/2025/05/house-republicans-launch-an-all-nighter-to-try-to-pass-trumps-big-bill/)

Economic and Policy Implications

The bill’s pro-growth policies, such as the permanent 199A deduction and 100% expensing for factories, are projected to generate $750 billion in small business growth and $284 billion in manufacturing growth. The Opportunity Zone program, renewed to spur $100 billion in rural investment, aims to revitalize distressed communities.

[](https://waysandmeans.house.gov/2025/05/12/the-one-big-beautiful-bill-delivers-on-president-trumps-priorities-to-restore-and-expand-trump-era-growth-and-relief-for-families-workers-and-small-businesses/)

However, the $4 trillion deficit increase has raised alarms among fiscal conservatives. Rep. Thomas Massie, R-Ky., called it a “debt bomb ticking,” warning of long-term economic risks. The bill also raises the debt ceiling by $4 trillion to avoid default by mid-2025, a move Republicans justified to bypass Democratic negotiations.

[](https://federalnewsnetwork.com/congress/2025/05/house-republicans-launch-an-all-nighter-to-try-to-pass-trumps-big-bill/)[](https://www.cbsnews.com/news/whats-in-trumps-one-big-beautiful-bill-medicaid-taxes/)

Environmental advocates have criticized the rollback of clean energy credits, arguing it undermines climate goals. The elimination of the $7,500 EV tax credit and new fees on EV owners could slow electric vehicle adoption, though supporters argue it levels the playing field for fossil fuel industries.

[](https://www.usatoday.com/story/news/politics/2025/05/22/trump-tax-bill-details-explained/83786929007/)

Looking Ahead

As the bill moves to the Senate, it faces a challenging path. Some Republican senators have expressed reservations about the deficit impact and temporary provisions, while Democrats are expected to propose amendments to restore social program funding. The White House has set a July 4, 2025, deadline for Senate action, with Trump emphasizing the need for speed.

[](https://www.northjersey.com/story/news/2025/05/19/what-is-the-one-big-beautiful-bill-details-include-when-no-tax-on-tips-overtime-starts-house-passed/83722561007/)

The legislation’s passage marks a significant step toward fulfilling Trump’s America First agenda, but its final form remains uncertain. TV News will continue to monitor developments as the Senate debates this transformative bill.

Share your thoughts on the One Big Beautiful Bill in the comments below.