President Donald Trump’s tax-cut legislation, dubbed “One Big Beautiful Bill,” was narrowly approved by the House on 3 July, and is set to be signed into law on 4 July 2025.
President Donald Trump’s tax-cut legislation passed its final hurdle in Congress, with the House of Representatives narrowly approving it 218-214 on 3 July 2024.
The bill, dubbed ‘One Big Beautiful Bill,’ is a significant win for Trump, funds his domestic agenda, including immigration crackdowns, makes his 2017 tax cuts permanent, and introduces new tax breaks promised during his 2024 campaign.
However, it cuts health and food safety net programmes, eliminates green energy incentives, and adds USD 3.4 trillion to the national debt, now at USD 36.2 trillion.
The Senate passed the bill earlier with Vice President JD Vance casting the tiebreaking vote on 1 July 2025.
Trump is set to sign the bill into law on 4 July 2025.
Earlier, the Senate Budget Committee Chairman, Lindsey Graham, released the updated text of the budget reconciliation bill, the One Big Beautiful Bill, on 28 June 2025. The bill was read in full on 29 June, followed by up to 20 hours of debate and potential amendments.
The key amendments include a temporary increase in the state and local tax (SALT) deduction cap to USD 40,000 and an accelerated phase-out of certain green energy credits. The amendments also included removing proposed Tax Code Section 899, “Enforcement of Remedies Against Unfair Foreign Taxes.” Also dubbed a “revenge tax,” Section 899 allows for increased US taxes on foreign countries with taxes, such as the Pillar Two UTPR, digital services taxes (DSTs), diverted profits taxes (DPTs), or other extraterritorial taxes.
This follows after Senate Republicans introduced their version of Trump’s tax-cut and spending bill on 16 June 2025, which aligns with the legislation recently passed by the House of Representatives on 22 May 2025.
