President Trump’s “One Big, Beautiful Bill” promises sweeping tax cuts but ignites fierce debate over deep Medicaid reductions and a soaring national debt.
At a Glance
- Trump’s proposal extends and expands $4.9 trillion in tax cuts from the 2017 law.
- House Republicans plan $900 billion in Medicaid-focused spending cuts.
- The bill removes taxes on tips, overtime, and Social Security benefits.
- An executive order targets drug price cuts tied to global benchmarks.
- Critics say the bill benefits the wealthy while risking vital health coverage.
A Republican Call to Arms
President Trump is urging lawmakers to rally behind his “One Big, Beautiful Bill,” a sweeping tax and spending package anchored in the extended provisions of the 2017 Tax Cuts and Jobs Act. The new bill would eliminate federal taxes on tips, overtime income, Social Security benefits, and car loan interest, while increasing the child tax credit and the standard deduction. It also proposes tripling the cap on state and local tax (SALT) deductions to $30,000—a move some high-tax state Republicans say still doesn’t go far enough.
To pay for the cuts, House Republicans introduced a framework to slash federal spending by $900 billion over ten years, with over half the reductions affecting Medicaid. As detailed in the New York Post, the proposal includes tighter eligibility criteria and work requirements for Medicaid recipients—changes Republicans claim will protect benefits for the most vulnerable, while opponents warn millions could lose access.
In tandem, Trump signed an executive order compelling pharmaceutical companies to match U.S. prescription drug prices to the lowest prices available in comparable developed countries. The mandate, which allows 30 days for compliance, marks one of the most aggressive federal efforts to confront Big Pharma on pricing.
Watch a report: Trump executive order demands pharma industry price cuts.
A Monumental Fiscal Proposal
While the plan has energized Trump’s base, it has sparked concern among budget watchdogs. According to the Joint Committee on Taxation, the bill would reduce federal revenue by $4.9 trillion over the next decade, and estimates from independent analysts suggest the true cost could approach $20 trillion. Notably, despite early GOP promises to raise taxes on high-income earners, the bill retains the existing 37% top tax rate.
The proposal also rewrites key energy and healthcare policies. It repeals the federal electric vehicle mandate and streamlines natural gas permitting, while Medicare reforms include delaying new nursing home staffing requirements and auctioning wireless spectrum. These measures, as reported by the New York Post, are aimed at cost containment but face criticism from public health advocates.
Optimism Amidst Division
Despite support from House Speaker Mike Johnson, the bill faces headwinds within the GOP itself. Moderates from swing districts warn the Medicaid cuts could trigger a political backlash, while fiscal hawks argue the plan’s deficit implications are unsustainable. Internal divisions persist, especially between the $900 billion House spending cuts and the Senate’s more modest $4 billion proposal.
Yet Trump remains adamant that Republican unity is the only path to passing what he calls a legacy-defining economic transformation. Whether this sweeping fiscal agenda cements his economic vision—or fractures the GOP in the process—may determine the shape of the party heading into 2026.
