House Passes “One Big Beautiful Bill”; Senate Braces for Contentious Debate

Washington, D.C. – The U.S. House of Representatives narrowly passed the “One Big Beautiful Bill Act” (OBBBA) on May 22, 2025, advancing a cornerstone of President Donald Trump’s second-term legislative agenda. The sweeping bill, approved by a 215–214–1 vote largely along party lines, now heads to the Senate, where it faces an uncertain future amid bipartisan concerns over its fiscal impact and social program cuts.

Key Provisions and Economic Impact

The OBBBA permanently extends the 2017 Trump tax cuts, introduces a $40,000 cap on state and local tax (SALT) deductions, eliminates taxes on tips, and creates “Trump accounts” to encourage children’s savings. The bill also allocates an additional $150 billion to defense spending, scales back clean-energy tax credits from the Inflation Reduction Act, and imposes stricter eligibility requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP).

According to the House Ways and Means Committee, the legislation is projected to increase real GDP by 5.2% over four years and add up to $13,300 in take-home pay for a typical family. Supporters argue that the bill will drive economic growth, create jobs, and deliver tax relief for working families and businesses.

Deficit Concerns and Social Program Cuts

However, the Congressional Budget Office estimates the bill will add $2.4 trillion to the national debt over the next decade and result in 10.9 million Americans losing health insurance coverage. Critics, including House Minority Leader Hakeem Jeffries, warn that deep cuts to Medicaid, SNAP, and Social Security will harm vulnerable populations and working Americans.

Senate Outlook and Proposed Changes

The Senate, led by Majority Leader John Thune, is expected to propose significant changes to secure enough votes for passage by President Trump’s July 4 deadline. Potential modifications include reducing the expanded SALT deduction and implementing deeper spending cuts to offset the bill’s costs. Some Senate Republicans have expressed reservations about the bill’s impact on the federal deficit and the scope of social program reductions.

Stakeholder Reactions

Business groups such as the U.S. Chamber of Commerce and the American Farm Bureau Federation have praised the bill’s provisions for tax relief and support for farmers and small businesses. Meanwhile, Democrats and advocacy organizations continue to voice strong opposition, highlighting the projected increase in uninsured Americans and the bill’s effect on social safety nets.

Next Steps

As the Senate prepares to debate and amend the OBBBA, the outcome will test Republican unity and determine whether President Trump’s legislative priorities can be enacted in full. The coming weeks are expected to bring intense negotiations and public scrutiny as lawmakers weigh the bill’s economic promises against concerns over fiscal responsibility and social welfare.