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One Big Beautiful Bill Act

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One Big Beautiful Bill Act
Great Seal of the United States
Long titleTo provide for reconciliation pursuant to title II of the Concurrent Resolution on the Budget for Fiscal Year 2025, H. Con. Res. 14.
Acronyms (colloquial)OBBBA, BBB, OB3, or OBBB
Announced inthe 119th United States Congress
Legislative history

The proposed One Big Beautiful Bill Act, also referred to as OBBBA, OBBB, BBB or OB3,[1] is a budget reconciliation bill in the 119th United States Congress.

The bill would extend the major provisions of the 2017 Tax Cuts and Jobs Act, which are set to expire at the end of 2025. It includes reductions in non-military government spending and significantly cuts spending on the Supplemental Nutrition Assistance Program (SNAP) and Medicaid through stricter eligibility requirements. It also allocates an additional $150 billion for defense spending, scales back many clean-energy tax credits from the Inflation Reduction Act, and extends the state and local tax (SALT) deduction cap—also scheduled to expire in 2025—by imposing a new limit of $40,000.[2][3][4][5][6][7] The bill is estimated by the Congressional Budget Office (CBO) to add $2.6 trillion to the national debt of the United States by 2034.[8] According to a CBO preliminary estimate, it would cause 8.6 million Americans to lose Medicaid coverage over the same period, 5.2 million due to work requirements.[9][10][11][12] It contains a number of other provisions, including a ten-year limitation on state AI legislation and restrictions on the ability to hold federal officials in contempt for failure to comply with judicial orders.[13]

It passed the House of Representatives on May 22, 2025, in a 215–214–1 vote, largely along party lines.[14][15]

The bill is credited with starting a public feud between Elon Musk and Donald Trump.[16]

Background

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Following the 2024 United States elections, in which the Republican Party retained the House of Representatives and won the Senate, Republicans began negotiations on passing then-president-elect Donald Trump's domestic policies. In a meeting with Senate Republicans in December 2024, Senate majority leader John Thune outlined an approach involving initial legislation on border security, energy production, and the military while reserving tax policy.[17] Trump, in contrast, advocated for a singular bill to resolve an impending lapse in tax cuts implemented in the Tax Cuts and Jobs Act in 2017, though the strategy faced risks from defecting members.[18]

In January 2025, Republicans met in Fort Lesley J. McNair; at the meeting, speaker of the House Mike Johnson stated that Trump sought "one big, beautiful bill" for his policies.[19] To more easily pass the bill, Republicans chose to use the reconciliation process, which allows them to avoid the 60-vote Senate filibuster (since they hold 53 seats out of 100 in the Senate). It requires the House and the Senate to pass identical instructions before passing the actual reconciliation bill.[20]

House Concurrent Resolution 14

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Initially, on February 21, 2025, the Senate approved S. Con. Res. 7 by 52–48. This was intended to be the first of two reconciliation instruction bills. The resolution allows for a future reconciliation bill containing $175 billion for immigration and border enforcement and increases the military budget by $150 billion. The resolution would not extend the 2017 Trump tax cuts. Senator Rand Paul of Kentucky was the only Republican to oppose the resolution.[21] Initially, the Senate intended to allow the House to pass reconciliation instructions first. However, at the time of the bill's passage, the House faced opposition to its one-bill approach from fiscal conservative members.[22]

On February 25, 2025, the House of Representatives approved H. Con. Res 14 by a 217–215 vote. The resolution would allow Republicans to pass a budget containing tax cuts while reducing federal spending. The resolution would also allow Congress to raise the debt limit by $4 trillion. The bill was briefly pulled due to opposition from fiscally conservative Republicans Thomas Massie of Kentucky, Tim Burchett of Tennessee, Warren Davidson of Ohio, and Victoria Spartz of Indiana. However, leadership convinced all but Massie to support the bill, and the vote happened as scheduled.[23] Initially, some moderate Republicans also expressed opposition over the possibility that the resolution would necessitate cuts to Medicare and Medicaid. However, Massie was the only Republican in the House to oppose the bill.[24]

In the early hours of April 5, 2025, the Senate approved an amended version of H. Con. Res 14 by a 51–48 vote. Unlike the House version, the Senate calls for $4 billion in spending cuts, significantly less than the $1.5 trillion in cuts passed by the House. The bill also calls for a $5 trillion raise in the debt limit, $1 trillion more than the House. The House and the Senate bills would extend Trump's 2017 tax cuts.[25] Senators Susan Collins (a moderate) of Maine, and fiscal conservative Rand Paul of Kentucky, both Republicans, joined all Democratic Senators in opposing the bill. After the vote, Reuters reported that non-partisan analysts believe that the legislation, if enacted as currently written, would add $5.7 trillion to the national debt of the United States in the next ten years. Republicans argue the extension of the 2017 tax cuts, which expire at the year's end, should not be counted as new debt, which means $1.5 trillion will be added to the national debt.[26]

The House had to pass the Senate's amended bill to continue the reconciliation process. House Republican leadership intended to vote on the bill on April 9. However, the vote was pulled due to opposition from 12 fiscal conservative Republicans.[27] The bill passed the following morning in a 215–214 vote after the Senate pledged also to seek at least $1.5 trillion in cuts. Fiscal conservative Republicans Thomas Massie and Victoria Spartz were the only members of their party to vote against the bill.[28]

One Big Beautiful Bill Act

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In the House of Representatives

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The full text of the bill was revealed by House Republicans on April 28, 2025, except for the tax portion, which was shown on May 12, 2025.

The defense portion of the bill will allocate an additional $150 billion in defense spending. Much of the funding will go to uncrewed drones, including kamikaze drones, uncrewed aircraft systems, drone boats, and underwater drones.[29]

The border security portion of the bill allocates $70 billion for border security, including $46.5 billion for barriers on the border, $5 billion for improvements to Customs and Border Protection (CBP) facilities, $4.1 billion to hire additional Border Patrol and CBP officers, $2.7 billion to improve border surveillance, $2 billion for CBP staff, and $1 billion for inspection technology,[30] creating the capacity to deport up to 1 million people each year.[31]

The education portion of the bill increases eligibility requirements for Pell Grants, introduces Workforce Pell Grants targeted at trade school students, ends Federal Direct subsidized loans for undergraduate students, and eliminates the United States Secretary of Education's ability to regulate based on gainful employment.[32]

The healthcare portion of the bill adds work requirements for the first time to Medicaid, requires Medicaid recipients above the federal poverty line to pay more fees for coverage, adds new verification requirements, increases the number of times states need to check the eligibility of their Medicaid expansion recipients, prohibits Medicaid from being used for gender-affirming care for adults and children (the Crenshaw Amendment) starting in 2027,[33][34] prohibits Medicaid from funding nonprofits that provide abortion care, makes it harder for undocumented immigrants to use Medicaid, and bans pharmacy benefit managers from using spread pricing.[35] The non-partisan Congressional Budget Office (CBO) estimates that it will cause 7.8 million people to lose Medicaid coverage.[31][36] CBO further estimates that 4 million people will lose health insurance due to ACA cuts, and that an additional 4.2 million people will lose marketplace coverage due to the legislation's failure to extend the premium tax credit enhancements that were initially part of the American Rescue Plan and extended by the Inflation Reduction Act.[36]

The tax portion of the bill will increase the child tax credit to $2,500 through 2028 and $2,000 after that, add a new tax deduction for tips and overtime, raise the state and local tax deduction (SALT) cap to $30,000 from $10,000, create a "money accounts for growth and investment" (MAGA) savings account for parents which would give $1,000 per child, create a 5% tax on remittances, increase the United States debt ceiling by $4 trillion, raise taxes on endowments of private universities, and allow the United States Department of the Treasury to revoke tax-exempt status for nonprofits the department determines support terrorism.[37] After the bill was revealed, Republican Representatives Elise Stefanik, Mike Lawler, Nick LaLota, and Andrew Garbarino of New York, Representative Young Kim of California, and Representative Tom Kean Jr. of New Jersey announced they would oppose the bill if the SALT cap were not raised further.[38][39] On May 20, 2025, these Republican holdouts agreed with Speaker Johnson to increase the SALT cap to $40,000 for taxpayers making less than $500,000.[40] The nonpartisan Committee for a Responsible Federal Budget estimates the increase in the SALT cap will overwhelmingly benefit the wealthiest households.[31] The bill will extend corporate and individual tax cuts passed in 2017 during Trump's first term in office and cancel many green-energy incentives passed by President Joe Biden under the Inflation Reduction Act.[31]

The welfare portion of the bill saw the following:

SNAP (Supplemental Nutrition Assistance Program

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  • Supplemental Nutrition Assistance Program (SNAP) cuts, which put 5% of the benefit costs and 75% of the administration costs onto the states. It comes with an increased cost to the state for benefits if the error rate crosses 6%, which slides between 15% and 25%.[41]
  • The Food and Nutrition Act of 2008 was amended by reducing from 50% to 25% for the percentage of administrative cost that the Secretary of Agriculture is authorized to pay to the states for their respective agencies for their SNAP programs.[42][43]

The bill has the following changes to Medicare in terms of enacting that the Secretary of Health and Human Services shall not, until January 1, 2035, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services of the following:[42]

  • Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting (89 FR 40876).[44]
  • Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment (88 Fed. Reg. 65230).[45] According the Medicare Rights Center, "the bill traps people with Medicare in red tape by stopping the Streamlining Medicaid Eligibility & Enrollment Rules".[46]

Before the bill was passed, it contained a provision which prevents federal courts from using appropriated funds to enforce findings of contempt of court for non-compliance with any court injunctions or court-issued temporary restraining orders, if no bond is posted by plaintiffs.[47] The bill signed by Congress has a restriction on enforcement of judicial contempt violations with the following working in Section 70302 of the bill stating that:[42]

No court of the United States may enforce a contempt citation for failure to comply with an injunction or temporary restraining order if no security was given when the injunction or order was issued pursuant to Federal Rule of Civil Procedure 65(c), whether issued prior to, on, or subsequent to the date of enactment of this section.

Federal Rule of Civil Procedure 65(c) allows a preliminary injunction to become effective, essentially, when a bond (security) is posted of an amount that the district court determines adequate.[48]

The version of the bill passed in the House includes a 10-year moratorium on state-level enforcement of any law or regulation regulating artificial intelligence (AI).[49][50][51]

On May 16, 2025, the House Budget Committee voted against the bill in a 16–21 vote. Four fiscal conservative Republicans (Chip Roy of Texas, Ralph Norman of South Carolina, Andrew Clyde of Georgia, and Josh Brecheen of Oklahoma) voted against the bill with all Democrats. Republican Lloyd Smucker of Pennsylvania changed his vote from yes to no to bring a motion to reconsider to vote again on the bill later.[52] However, on May 18, 2025, the Budget Committee voted to advance the bill in a 17–16 vote. Roy, Norman, Clyde, and Brecheen changed their votes to present after House Republican leadership agreed to make Medicaid work requirements, previously scheduled to begin in 2029, kick in sooner and decrease future subsidies for clean energy. Despite this, the four Republicans said they would not support the bill's final passage unless more changes were made.[53]

Late on May 21, 2025, after negotiations between Speaker Johnson, President Trump, and members of the Freedom Caucus, Republicans modified the bill to ensure passage on the floor. The bill will remove suppressors from National Firearms Act regulation, thereby eliminating the current $200 tax levied on the manufacture or transfer of those items;[54] no longer allow for the sale of public lands in Nevada and Utah; cut a proposed tax on overseas remittances from 5 percent to 3.5 percent; stop payments to Affordable Care Act plans that pay for abortions outside of cases involving rape, incest, or danger to the life of a mother; increase the rollback of renewable energy incentives; and move up Medicaid work requirements to start at the end of 2026 instead of the beginning of 2029.[55][56]

On the morning of May 22, 2025, the United States House of Representatives voted 215–214–1, primarily along party lines, to pass the bill.[57] Fiscal conservative Republicans Thomas Massie and Warren Davidson broke from their party to vote against the bill, while Freedom Caucus Chair Andy Harris of Maryland voted present.[58]

According to the CBO, it will add $2.619 trillion to the federal government's $36.2 trillion debt over the next 10 years.[8]

On June 10, 2025, Republicans announced they would amend the bill through a procedural rule. The amended bill removes a crack down on the Pandemic-era employee retention tax credit, removes $2 billion allocated for Pentagon military intelligence programs, removes $500 million allocated for missile development, removes a policy that would have ended SNAP assistance for some households that are also eligible for other assistance and removes a provision to allow mining around the Boundary Waters wilderness. The changes were made in order to abide by the Byrd Rule in the Senate. Using a rule to have this vote means that House Republicans voting against the amendment would also vote to block consideration of unrelated bills.[59][60]

Voting by Democratic Representatives

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The narrow passage of the bill led to internal backlash and division in the Democratic Party. Three elderly Democratic representatives (Raúl Grijalva of Arizona, age 77; Sylvester Turner of Texas, age 70; and Gerry Connolly of Virginia, age 75) died in the first five months of 2025. If any of the three had been alive when the vote was taken, the result could have been different. Thus, the vote "quickly reignited an intraparty debate about gerontocracy and aging politicians clinging to power".[14][15]

In the Senate

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The Republican-led Senate is expected to amend the bill.[61] Fiscally conservative Republican Senators (nicknamed "deficit hawks") such as Ron Johnson of Wisconsin, Rick Scott of Florida, Mike Lee of Utah and Rand Paul of Kentucky, continue to push for deeper spending cuts.[61][62] Moderate Republicans such as Susan Collins of Maine, Lisa Murkowski of Alaska and Jerry Moran of Kansas, along with populist Josh Hawley of Missouri, have expressed concerns about Medicaid cuts.[61][63] Other moderates such as John Curtis of Utah and Thom Tillis of North Carolina, along with Murkowski and Moran, have also expressed concerns over the end of green energy tax credits.[61] Defense hawks such as Mike Rounds of South Dakota are opposed to spectrum auction provisions in the bill.[61]

Democrats in the Senate will look to use the Byrd Rule, which prevents reconciliation from being used to pass "extraneous" measures in bills which increase federal spending in the Senate, in order to strip certain provisions from the bill. Democrats argue that the extension of Trump's 2017 Tax Cuts, a proposed 10-year ban on state level AI regulations, language that limits the power of federal court to enforce contempt of court citations, a provision to end a tax on the manufacturing of gun silencers, a provision to defund Planned Parenthood, a provision banning Medicaid from funding gender-affirming care for people of all ages and a provision to streamline permits for fossil fuel projects, violate the Byrd Rule.[64][65][66]

Musk–Trump feud

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Main article: Elon Musk–Donald Trump feud

The bill is credited with starting the Elon Musk–Donald Trump feud.[16]

On June 5, 2025, Trump met with German chancellor Friedrich Merz in the Oval Office. During the meeting, Trump stated that he "had a great relationship" with Musk,[67] that he was "disappointed" in Musk for criticizing the One Big Beautiful Bill Act,[68] that he would have won the state of Pennsylvania in the 2024 presidential election without Musk and that he was critical of the bill over its cuts to electric vehicle subsidies rather than the national debt it would incur,[69] and that Musk missed being in the White House, comparing him to former aides who became critical of Trump after leaving his administration.[70] In response to Trump's comment that Musk "knew the inner workings of the bill better than anybody" in the room, Musk said on Twitter that he did not have the opportunity to read the bill.[71] Musk, responding to Trump in real-time,[71] said that Trump had "ingratitude" and would have lost the election if not for Musk's political activities.[72] Musk's posts involved old posts from Trump chastising increases to the national debt, mockingly suggesting in one post that Trump was replaced by a "body double".[73] He rejected Trump's claim that he began criticizing the bill after efforts to remove cuts for electric vehicle subsidies failed.[74]

Musk accused Trump of appearing in the "Epstein files", the US government's files on the convicted sex offender Jeffrey Epstein, and claimed, without evidence, that the release of the files had been halted as a result.[75] Trump Media & Technology Group shares fell eight percent after Musk's insinuation,[76] which he later deleted.[77]

As a result of the conflict, Tesla, Inc. shares fell by 14.2% in a single day, decreasing the company's market capitalization by $152 billion.[78] Trump's cryptocurrency, $TRUMP, additionally fell twelve percent.[79] Steve Bannon, a former advisor to Trump, said that he was urging Trump to cancel government contracts with his companies and to investigate Musk's immigration status, his alleged drug use, and his apparent efforts to attend a classified briefing on a possible war between China and Taiwan.[80] On X, Musk stated that SpaceX was decommissioning its Dragon spacecraft, necessary to the operations of the International Space Station,[81] but later retracted the statement.[82]

Reception

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Support

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According to the White House's website, whitehouse.gov, 265 organizations, companies, and individuals have expressed public support for the bill, including AT&T, Comcast, 3M, American Airlines, Delta Air Lines, the National Retail Federation, the National Taxpayers Union, and Secretary of Homeland Security Kristi Noem.[83]

Opposition

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Moody's, which rates bonds, was the final of the three credit rating agencies to downgrade U.S. debt from AAA, citing efforts to pass the bill.[84]

Polling indicates that an overwhelming majority of Americans oppose its provisions to ban state regulation of artificial intelligence.[85] The provision was seen as irresponsible by researchers who believe that artificial superintelligence is imminent.[86][87][88] Others feared that it would prevent regulation of AI-generated child pornography and deepfakes, make certain privacy laws obsolete, and further centralize power in the federal government.[89][90]

The Atlantic,[91] CNBC,[92] The New York Times,[93] and Vox[94] argued that the bill creates the largest upward transfer of wealth from the poor to the rich in American history, with Fortune[95] and CNN[96] nicknaming it the "Reverse Robin Hood Bill" (since Robin Hood is known for "robbing the rich to give to the poor"). Senate Minority Leader Chuck Schumer (D-NY) mockingly called the bill the "We're All Going to Die Act",[97] alluding to comments made by Republican Senator Joni Ernst (R-IA) at a town hall.[98]

Public health and policy researchers at Yale University and the University of Pennsylvania sent a letter to Senate leaders warning that cuts to health programs in the bill would lead to over 51,000 preventable deaths annually.[99][100]

Elon Musk, the then-de facto head of the Department of Government Efficiency (DOGE), denounced the bill as a massive spending bill;[101][102][103] he later called it a "disgusting abomination."[104][105] Senators Rand Paul (R-KY) and Mike Lee (R-UT) backed Musk's criticism over the bill, with Lee writing that "the Senate must make this bill better".[106] Republican opposition to the bill has been associated with the libertarian faction of the party.[107]

See also

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References

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