The One Big Beautiful Bill Act (OBBBA) includes significant policy victories that represent meaningful progress in delivering on what the American people voted for in November. From driving economic growth to securing our nation’s borders to rooting out waste and fraud, President Trump and a Republican Congress have taken a significant step in their promise to put Americans first.
1. Extends and Expands Tax Cuts for American Families
Prevents a $4 trillion tax hike that would have severely crushed almost all individuals and families, especially middle-class Americans.
Saves Americans an average of $2,314 per year in federal income taxes between 2026 and 2034, not including indirect savings from business tax cuts.
Simplifies taxes for Americans by preserving and increasing the standard deduction to $15,750 for individuals (+$750) and $31,500 for married couples (+ $1,500).
Helps families by raising the child tax credit to $2,200 from $2,000 (it would have fallen to $1,000 in 2026 without OBBBA), and adds an annual cost-of-living adjustment.
Ensures no tax on tips and overtime, so working-class Americans keep more of what they earn by creating a deduction for up to $25,000 for tipped income and $12,500 for overtime pay.
Allows Americans who buy an American-made vehicle to fully deduct their auto loan interest by adding a deduction of up to $10,000 for domestic car loan interest payments.
Helps seniors by creating a new deduction of $6,000 per eligible senior ($12,000 for two married seniors).
Encourages charitable giving by creating a new above-the-line deduction of up to $1,000 ($2,000 for married) so that Americans who claim the standard deduction are able to deduct some of their charitable giving.
By extending and expanding the 2017 Trump tax cuts, OBBBA ensures more money stays with families, workers, and job creators–not with Washington.
2. Promotes Job-Creating Tax Cuts and Reforms
Encourages businesses to invest in their companies by permanently extending the 100% expensing provision for equipment and machinery.
Gives certainty to American businesses to expand and create jobs by permanently extending the Section 199A small business deduction, up to 20% of income earned.
Rewards companies that manufacture in America by enabling businesses to instantly write off the expenses of constructing and investing in new factories, refineries, and agricultural buildings.
OBBBA creates long-term certainty for American businesses and promotes job creation, investment, and productivity.
3. Ramps Up Border Security & Immigration Enforcement
Substantially boosts funding to secure the border to build 701 miles of primary wall, 900 miles of river barriers, 629 miles of secondary barriers, 141 miles of vehicle and pedestrian barriers, as well as hire 3,000 new Border Patrol agents.
Significantly increases resources to increase interior enforcement of immigration laws and prevent more illegal immigration by providing funding to hire 10,000 new Immigration and Customs Enforcement (ICE) agents and fund at least 100,000 detention beds.
Reduces frivolous asylum applications by creating application fees for aliens. Frivolous asylum claims have had a significant part in the over 11 million application backlog at DHS/USCIS and an additional 3 million cases pending at DOJ.
Discourages illegal immigration and unauthorized employment by establishing a remittance tax. Illegal aliens often seek to send money home to family members outside the country, and a remittance is an outbound transfer of money internationally. Billions of U.S. dollars have left the U.S. in remittances without benefitting the U.S. economy, and much of this is based on unauthorized work by illegal aliens.
OBBBA puts Americans first by securing our border, enforcing our laws, and regaining control of our immigration system.
4. Rebuilds America’s Military & Restores National Defense
Modernizes our military and strengthens the armed forces with over $150 billion in targeted investments, prioritizing warship procurement and expanding shipbuilding capacity.
Makes investments in advanced and emerging technologies, a key element to ensure military prowess, innovation, and readiness in the 21st century.
Expands American defense manufacturing and production capacity, and reduces reliance on foreign supply chains.
Strengthens America’s capacity to effectively deter and strategically respond to the growing threats from China, Russia, and Iran.
When the military has the resources to protect our national interests, Americans will have strength at home and ensure peace abroad.
5. Defends Life by Defunding Big Abortion Providers
Defunds big abortion providers like Planned Parenthood of Medicaid funding for one year, which will save millions of preborn lives. Most of Planned Parenthood’s federal funding comes from Medicaid reimbursements. Losing that money – even for one year – can cripple Big Abortion’s business.
This policy reinforces that, as with the Hyde Amendment, which prohibits direct payments for elective abortions, Congress can align spending priorities to advance human dignity.
6. Strengthens Work Requirements for SNAP
Promotes upward mobility for Americans by requiring able-bodied adults ages 18-59 to work, train, or volunteer to maintain benefits.
Reduces fraud by making states more accountable for improper payments. States will be required to contribute some of their own funding to SNAP (up to 15%) depending on the state’s payment error rate (the share of SNAP payments made incorrectly).
Saves Americans $185.9 billion in program costs during the next 10 years, according to the Congressional Budget Office.
Reforming SNAP promotes self-sufficiency rather than long-term dependency, and protects taxpayer dollars from misuse.
7. Reforms Medicaid: Stops Fraud, Encourages Work
Preserves and improves program services for low-income pregnant women, children, seniors, and individuals with disabilities.
Gives able-bodied, childless adults a pathway out of poverty. It enacts national work requirements for able-bodied adults, reviving policies from the first Trump administration.
Ends state-financing gimmicks and closes loopholes such as “provider tax” schemes, a fiscal shell game that shifts more costs on federal taxpayers.
Prevents fraud by tightening eligibility requirements and removing at least 1.4 million illegal immigrants from the rolls.
These reforms to Medicaid are common-sense changes that ensure people get the care they deserve, and we do a better job serving the people who need it most.
8. Makes American Energy More Affordable and Reliable
Reduces inflation by cutting green new deal giveaways from Biden’s Inflation Reduction Act that cost taxpayers billions and disproportionately hurt working families, small businesses, and farmers.
Lowers electric costs and improves energy reliability by halting federal support for unproven, uneconomical renewable energy technologies. As Texas discovered in the deadly Winter Storm Uri, intermittent renewables simply cannot be counted on when they are needed most.
Reduces dependence on China by eliminating the Electric Vehicle Tax Credit and other tax credits President Trump refers to as the “Green New Scam.” China produces over three-quarters of global EV batteries.
Policies that promote resilient, affordable, and independent energy are critical to America’s economic security and quality of life.
9. Makes Education Work for Students and Taxpayers
Reduces tuition inflation by eliminating the inflationary Grad PLUS program and implements a borrowing cap on Parent PLUS loans at $65,000 total per student. These programs had previously allowed borrowing up to the full cost of attendance.
Holds universities accountable by withdrawing Title IV eligibility (access to federal student loans) for programs where graduates’ median earnings are too low, preventing additional taxpayer funds from going to programs that fail to deliver a good return on investment.
Modernizes Pell Grants by prioritizing students with the greatest financial need and expanding eligibility to high-quality, short-term workforce training programs.
These reforms to higher education ensure better outcomes for all students and the responsible stewardship of taxpayer dollars.