Published Date: 05.07.2025 06:17 / Politics Rowan Farrel Rowan Farrel

Trump Signs Sweeping Tax, Border Security Bill

Trump Signs Sweeping Tax, Border Security Bill

Trump signs sweeping $3.3T bill making tax cuts permanent, funding border security, and reforming Medicaid and SNAP.

Trump Secures Major Legislative Victory Ahead of July 4th

President Donald Trump signed his $3.3 trillion “big, beautiful bill” into law on Friday, marking a sweeping triumph for his second-term agenda. The legislation, which passed the House on Thursday just before Trump’s self-imposed July 4 deadline, cements permanent tax cuts and delivers on long-standing promises related to border security and social program reform.

The new law permanently extends both individual and business tax reductions first introduced in Trump’s 2017 Tax Cuts and Jobs Act. In addition, it introduces fresh deductions that eliminate federal taxes on tips, overtime pay, and Social Security for seniors, while making the child tax credit permanent for an estimated 40 million American families.

“We have officially made the Trump tax cuts permanent,” Trump declared before signing the bill. “That’s the largest tax cut in the history of our country. Our country is going to be a rocket ship economically. The Golden Age of America is upon us.”

The measure also increases the national debt ceiling by $5 trillion, a provision that attracted scrutiny from fiscal watchdogs, including tech CEO Elon Musk. Alongside the tax changes, the bill rescinds certain green energy tax credits from the previous administration, redirecting approximately $350 billion to defense spending and mass deportation initiatives targeting illegal immigration.

Trump took aim at renewable energy incentives, particularly wind power, dismissing them as costly and ineffective: “Aside from ruining our fields and valleys, killing birds, and being expensive, they’re all made in China.”

Medicaid and SNAP Reforms Add to Controversy

The law includes significant reforms to Medicaid, instituting a new 80-hour-per-month work requirement for recipients, and expands work requirements for Supplemental Nutrition Assistance Program (SNAP) beneficiaries. The path to passage was contentious, with the Senate Parliamentarian forcing the removal of several Medicaid provisions to comply with legislative rules.

The Senate narrowly approved the bill 51-50 after three Republican senators opposed it, requiring Vice President JD Vance to cast the decisive vote. The House subsequently reconciled differences before final passage.

“The Big Beautiful Bill gives the president the resources and power to undo the Biden border invasion,” Vance said, highlighting the law’s robust funding for border security. Trump labeled the bill the “single-most important piece of border legislation ever to cross the floor of Congress.”

White House officials argued that failure to pass the bill would have led to higher taxes and a recession. Office of Management and Budget Director Russell Vought warned lawmakers that inaction could have resulted in a 60% tax hike for Americans.

Despite Republican celebration, the legislation received no support from congressional Democrats. House Minority Leader Hakeem Jeffries condemned the measure as “cruel,” citing Medicaid and SNAP reforms that could remove millions from assistance. “It’s dangerous, and it’s cruel, and cruelty should not be either the objective or the outcome of legislation,” Jeffries stated on the House floor.

The passage of the bill marks a defining legislative achievement for Trump’s second term, setting the stage for continued debate over its economic and social impact as the country enters a new era of tax policy, border enforcement, and government spending.