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WASHINGTON—President Donald Trump signed the One Big Beautiful Bill Act into law on July 4, celebrating both a major legislative victory and America’s Independence Day at a White House ceremony.

The signing took place at 5:45 p.m. during a military family picnic on the White House grounds. A B-2 Spirit bomber from Whiteman Air Force Base escorted by two F-35 fighter jets performed a flyover during the signing ceremony.

House Speaker Mike Johnson, Senate Majority Leader John Thune, the majority of cabinet members, and numerous Republican senators and members of Congress were invited to the event.

"It's the most popular bill ever signed in the history of our country," Trump said before signing the bill.

The bill marks a major political victory for Trump, allowing him to advance much of his domestic agenda.

The historic bill came after weeks of intense negotiations within the Republican Party and between the House and Senate. It includes making the 2017 tax cuts permanent, providing tax breaks on tips, overtime, and Social Security income, funding the completion of the border wall, allocating $150 billion for defense spending, and repealing so-called green energy tax credits.

B-2 Spirit Bombers flyover the White House as President Donald Trump stands for the National Anthem during an Independence Day military family picnic on the South Lawn of the White House in Washington on July 4, 2025. (Eric Lee/Getty Images)

Here are the <a href="https://www.theepochtimes.com/us/whats-in-the-senate-version-of-the-big-beautiful-bill-5880045" target="_blank" rel="nofollow noopener">main components</a> of the bill.
<h2>Permanent Extension of 2017 Tax Cuts</h2>
The centerpiece of the legislation is permanently extending the lower individual income tax rates introduced in the 2017 Tax Cuts and Jobs Act.

Without this action, those cuts would have expired at the end of 2025, causing rates to rise in 2026 and increasing the tax burden on millions of households.
<h2>Increased Child Tax Credit</h2>
The bill boosts the child tax credit from $2,000 to $2,200 per child and makes the credit permanent.
<h2>Tax Relief on Tips, Overtime, and Auto Loans</h2>
The bill implements some of Trump’s core campaign promises on tax policy, cutting taxes on tips, overtime pay, and auto loans.

Taxpayers would be allowed to deduct the first $25,000 in income earned from tips; up to $12,500 in income from overtime pay for single filers or up to $25,000 for joint filers; and up to $10,000 of loan interest on cars made in America.
<h2>$6,000 Social Security Deduction for Seniors</h2>
The legislation provides seniors with a $6,000 deduction on their Social Security income. However, this benefit phases out for individuals earning over $75,000 and couples earning more than $150,000.

Single filers who make $175,000 or more, or joint filers with an income of over $250,000, will not be eligible for the deduction.
<h2>Major Funding for Border Security</h2>
The legislation allocates $150 billion to support immigration enforcement in line with key promises from Trump’s campaign.

This includes nearly $30 billion for Immigration and Customs Enforcement (ICE), the agency leading the administration’s mass deportation program.  An additional $13.5 billion in grants is set aside for state and local governments that support these operations.

The bill also provides $45 billion for the detention of illegal immigrants and earmarks $46.5 billion for the continued construction of a wall along the U.S.-Mexico border. The funding will remain in place through the end of fiscal year 2029.
<h2>Defense Spending</h2>
The bill appropriates $157 billion for defense, with $29 billion going toward enhancing U.S. maritime capabilities and shipbuilding, $25 billion slated for munitions, and $25 billion dedicated to the “<a href="https://www.theepochtimes.com/us/design-selected-for-golden-dome-missile-defense-plan-trump-announces-5860756">Golden Dome</a>“ missile defense project.

The funding will cover expenditures through the end of fiscal 2029.
<h2>Cuts to Clean Energy Tax Credits</h2>
Several clean energy tax credits established under the Inflation Reduction Act are being cut, beginning as early as 2025.

The electric vehicle tax credit is scheduled to end on Sept. 30.

Other credits for clean energy projects, such as hydrogen, wind, and solar, will only be available to projects that are operational by either Dec. 31, 2027, or Jan. 1, 2028, depending on the type of project.
<h2>Medicaid and Rural Hospitals</h2>
The bill seeks to curb Medicaid spending by imposing an 80-hour monthly work requirement for able-bodied adults to receive benefits.

It also lowers the “provider tax”—the rate at which states tax hospitals and doctors to pay for their Medicaid programs—from 6 percent to 3.5 percent in states that expanded Medicaid under the Affordable Care Act. Ten states that didn’t expand their programs will see no changes.

To offset fears that these changes would harm rural hospitals, the bill allocates $50 billion in support for such hospitals.

Additionally, it would bar abortion clinics from receiving Medicaid funds for one year.
<h2>SNAP Cuts</h2>
For the first time, the bill would require states to contribute to the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps.

States would be responsible for covering between 5 percent and 15 percent of benefit costs, depending on their payment error rates.

Alaska and Hawaii could seek a waiver from this requirement if they demonstrate a good-faith effort to reduce their errors.

The bill also raises the states’ share of SNAP administrative costs from 50 percent to 75 percent.
<h2>$5 Trillion Debt Ceiling Increase</h2>
The bill includes a $5 trillion increase to the U.S. debt ceiling. This provision is one of the most pressing items in the bill as the Treasury nears a potential default in the coming months.
<h2>Expanded SALT Deduction Cap</h2>
The bill raises the state and local tax (SALT) deduction cap from the current $10,000 limit set by the 2017 Tax Cuts and Jobs Act.

The new cap would rise to $40,000 per year, with a 1 percent increase annually over the next five years. Beginning in 2030, the cap would return to $10,000.

The SALT deduction allows taxpayers to subtract a portion of their state and local taxes from their federal taxable income. The provision has long been controversial among conservatives, who say it disproportionately benefits residents of high-tax blue states at the expense of those in lower-tax red states.
<h2>Education Policy Changes</h2>
The bill reduces Pell Grant eligibility for high-income students and students with a full ride. It also introduces two federal student loan repayment plans, including one traditional repayment plan and one income-based repayment plan.

Additionally, it would tax college and university endowments at a variable rate—either 1.4 percent, 4 percent, or 8 percent—based on the institutions’ wealth.

<em>Joseph Lord and Lawrence Wilson contributed to this report.</em>

<em>From <a href="https://www.theepochtimes.com/us/trump-signs-landmark-big-beautiful-bill-into-law-during-july-4-celebration-5882860">The Epoch Times</a></em>

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In July 4 Ceremony, Trump Signs ‘Big, Beautiful Bill’ Into Law

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