Explained: What changes after Senate passes Trump’s ‘big beautiful bill’

New Delhi: After a dramatic all-night session and a nail-biting 50-50 Senate split, President Donald Trump’s signature “One Big Beautiful Bill Act”, a sweeping package of tax breaks and spending cuts, has cleared the Senate thanks to Vice President JD Vance’s tie-breaking vote. 

The bill, which now heads back to the House, represents the biggest overhaul of tax and social spending policy in years. Here’s a detailed look at what will change if the legislation becomes law.

Permanent tax cuts for individuals and corporations

The bill makes Trump’s 2017 tax cuts, previously set to expire at year’s end, permanent, locking in lower rates for individuals and corporations. It adds new provisions, including no taxes on tips, a move Trump heavily campaigned on. In total, the Congressional Budget Office (CBO) estimates the bill delivers $4.5 trillion in tax cuts over the next decade.

Deep cuts to Medicaid and food assistance

The bill’s most controversial feature is $1.2 trillion in spending reductions, focused primarily on Medicaid and the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. It tightens work requirements for able-bodied adults, including some parents and older Americans, and changes federal reimbursements to states, likely making it harder for millions to qualify for or retain coverage.

According to the CBO, the changes would result in 11.8 million more Americans being uninsured by 2034. Critics warn that the new requirements and funding cuts will push many low-income Americans off the safety net.

Green Energy credits rolled back

The legislation rolls back billions of dollars in tax credits for wind and solar energy, a move Democrats argue will undercut clean energy investments nationwide. Supporters say it will end what they call “market-distorting” federal subsidies, but renewable energy advocates warn of severe job and project losses.

New border security and immigration funding

The bill provides a $350 billion infusion for border and national security, including new funding for deportations. Some of this is funded by new fees charged to immigrants. The measure is one of the largest single boosts to border enforcement in recent history.

Special funds and state provisions

Senate negotiations led to the inclusion of $50 billion for a new rural hospital fund, aimed at mitigating the impact of Medicaid provider cuts in underserved areas. Some states, like Alaska, received special provisions to spare them from certain food stamp cuts.

Deficit set to grow

Despite the steep spending reductions, the package will increase the federal deficit by nearly $3.3 trillion over the decade, according to the CBO, due to the sheer size of the tax cuts.

A bitterly divided congress

The bill passed by the narrowest margin, with three Republican senators, Thom Tillis (NC), Susan Collins (ME), and Rand Paul (KY), joining all Democrats in opposition. The Senate was deadlocked at 50-50 before Vice President Vance’s tie-breaking vote. The final outcome followed an all-night marathon of amendments and tense negotiations, highlighting the deep divisions within the GOP and across the aisle.

What happens next?

The bill returns to the House, where Speaker Mike Johnson has warned senators not to overhaul what his chamber already approved. The Senate made changes, particularly to Medicaid, that could create new hurdles for final passage. House GOP leaders, however, remain determined to put the bill on Trump’s desk by his July Fourth deadline.

What this means for Americans

If the bill becomes law, Americans can expect:

1. Permanently lower taxes, especially for wealthier individuals and corporations
2. Tighter eligibility and work requirements for Medicaid and food stamps
3. Reduced support for renewable energy
4. More spending on border security
5. A much larger federal deficit
6. Millions potentially losing health coverage

As the legislation moves toward its final showdown, the political and real-world stakes are high. The coming weeks will decide whether Trump and his allies can deliver on a legislative promise that will reshape the nation’s tax code and social safety net for years to come.