One Big Beautiful Bill Act

The One Big Beautiful Bill Act (acronyms OB3; OBBBA; OBBB; BBB), or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by President Trump on July 4, 2025. Although the law is popularly referred to as the One Big Beautiful Bill Act, this official short title was removed from the bill during the Senate amendment process. Therefore, the law officially has no short title.

The OBBBA contains hundreds of provisions. It permanently extends the individual tax rates Trump signed into law in 2017, which were set to expire at the end of 2025. It raises the cap on the state and local tax deduction to $40,000 for taxpayers making less than $500,000, with the cap reverting to $10,000 after five years. The OBBBA includes several tax deductions for tips, overtime pay, auto loans, and creates Trump Accounts, allowing parents to create tax-deferred accounts for the benefit of their children, all set to expire in 2028. It includes a permanent $200 increase in the child tax credit, a 1% tax on remittances, and a tax hike on investment income from college endowments. It phases out some clean energy tax credits that were included in the Biden-era Inflation Reduction Act, and promotes fossil fuels over renewable energy. It increases a tax credit for advanced semiconductor manufacturing and repeals a tax on silencers.

It raises the debt ceiling by $5 trillion. It makes a significant 12% cut to Medicaid spending. The OBBBA expands work requirements for SNAP benefits (formerly called "food stamps") recipients and makes states responsible for some costs relating to the food assistance program. The OBBBA includes $150 billion in new defense spending and another $150 billion for border enforcement and deportations. The law increases the funding for Immigration and Customs Enforcement (ICE) from $10 billion to more than $100 billion by 2029, making it the single most funded law enforcement agency in the federal government and better funded than most countries' militaries.

The Congressional Budget Office (CBO) estimates the law will increase the budget deficit by $2.8 trillion by 2034 and cause 10.9 million Americans to lose health insurance coverage. Further CBO analysis estimated the highest 10% of earners would see incomes rise by 2.7% by 2034 mainly due to tax cuts, while the lowest 10% would see incomes fall by 3.1% mainly due to cuts to programs such as Medicaid and food aid. Several think tanks, experts, and opponents criticized the bill over its regressive tax structure, described many of its policies as gimmicks, and argued the bill would create the largest upward transfer of wealth from the poor to the rich in American history, exacerbating inequality among the American population. It has also drawn controversy for rolling back clean energy incentives and increasing funding for immigration enforcement and deportations. According to multiple polls, a majority of Americans oppose the law.

Democratic opposition to the health spending cuts included in the OBBBA contributed to the 2025 United States federal government shutdown.

Following the 2024 United States elections, in which the Republican Party retained the House of Representatives and won the Senate, Republicans began negotiations on passing then-president-elect Donald Trump's domestic policies. In a meeting with Senate Republicans in December 2024, Senate majority leader John Thune outlined an approach involving initial legislation on border security, energy production, and the military while reserving tax policy. Trump, in contrast, advocated for a singular bill to resolve an impending lapse in tax cuts implemented in the Tax Cuts and Jobs Act in 2017. However, this strategy faced risks from defecting members.

In January 2025, Republicans met in Fort Lesley J. McNair. At the meeting, Speaker of the House Mike Johnson stated that Trump sought "one big, beautiful bill" to enact his policies. To more easily pass the bill, Republicans chose to use the budget reconciliation process, which allowed them to avoid the 60-vote Senate filibuster, which carried importance as they hold 53 seats out of 100 in the Senate. This requires the House and the Senate to pass identical instructions before passing the actual reconciliation bill.

Before being signed into law, the Senate approved the bill 51–50 on July 1, 2025, with Vice President JD Vance casting a tiebreaking vote in support. It passed the House of Representatives, 218–214, on July 3, 2025. It passed over universal Democratic opposition in both houses.