09/11/2026
The **One Big Beautiful Bill Act** is the name for **H.R. 1, Public Law 119-21**, signed into law on July 4, 2025. It was passed as a budget reconciliation bill - a 1,000+ page package meant to enact the Trump administration's domestic agenda in one bill.
It’s often shortened to OBBBA or OBBB.
****What it does
It's a sweeping tax-and-spending package. The major pieces:
**1. Taxes - makes the 2017 Tax Cuts and Jobs Act (TCJA) permanent:**
The core of the bill is extending key parts of the TCJA before they expired in 2026.
- Makes permanent the individual income tax rates and brackets from TCJA, which avoids a tax hike on an estimated 62 percent of tax filers in 2026
- Increases standard deduction, child tax credit, and the Section 199A deduction for pass-through businesses
- Restores permanent 100% bonus depreciation - taxpayers get a permanent 100% additional first-year depreciation deduction for qualified property acquired and placed in service after January 19, 2025
- New tax breaks promised in the 2024 campaign: no tax on tips, no tax on overtime, and deduction for auto loan interest on American-made cars
- Raises the SALT (state and local tax) deduction cap
- Establishes new savings accounts for newborns and creates new farmland provisions - Section 1062 allows taxpayers to elect to pay tax on qualified farmland sales in four equal installments
Analysis cited by the Tax Foundation found the major tax provisions will reduce federal tax revenue by nearly $5.2 trillion between 2025 and 2034 on a conventional basis, while increasing long-run GDP by 0.7 percent.
**2. Spending and safety net changes:**
- Medicaid: nearly 18% cuts over a decade, with new 80-hour-per-month work/volunteer/education requirements for able-bodied adults ages 19-64, including parents of children over 14, more frequent eligibility checks, and restrictions on non-citizen participation
- SNAP (food stamps): new cost-sharing and work requirements
- The White House describes these as "commonsense, Clinton-era work, volunteer, education, or training requirements" to promote work
**3. Energy and climate:**
- Repeals or phases out clean energy tax credits from the Inflation Reduction Act, including EV credits
- Ends credits flowing for green energy projects
**4. Border and immigration:**
- The bill provides funding to empower immigration enforcement to deport, secure the border permanently, and includes provisions that ensure illegal immigrants do not receive food stamps or Medicaid and taxes remittances sent abroad
- House version included a 3.5 percent tax on remittances, or non-commercial transfers of money that people in the US send to people abroad
**5. Other:**
- Restrictions on Medicaid funding for gender-affirming care and Planned Parenthood
- Increases defense and border security funding
