The bill permanently extends Trump’s 2017 tax cuts, adds small business tax relief, introduces new breaks, boosts military and immigration spending, repeals green-energy incentives, and adds USD 3.3 trillion to the national debt

US Senate Republicans have passed President Donald Trump’s tax-cut and spending bill, also called ‘One Big Beautiful Bill’, on Tuesday, 1 July 2025.

The One, Big, Beautiful Bill extends Trump’s 2017 tax cuts and makes them permanent. It adds tax relief for working families and small businesses, introduces new tax breaks for tips and overtime, boosts military and immigration enforcement spending, and cuts USD 930 billion from Medicaid and food aid programmes. It also repeals many of President Biden’s green-energy incentives, adding USD 3.3 trillion to the national debt.

The bill now moves to the House of Representatives for potential final approval.

Trump aims to sign it into law by 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.

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.

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.

Earlier, US Treasury Secretary Scott Bessent announced, on 27 June 2025, that the US has reached an agreement with the other G7 countries (Canada, France, Germany, Italy, Japan, and the UK) to exclude US companies from Pillar Two taxes.

The US House Ways and Means Committee passed the Big, Beautiful Bill by the House of Representatives on 22 May 2025.