In Beltway parlance, ‘One Big Beautiful Bill’ has been shorthand for this huge and uniquely Republican bill that amasses a multitude of budgetary, tax, and social spending overhaul ideas. This is the GOP’s budget reconciliation bill that’s working its way through Congress that, if it passes, would rewrite tax rules and shape federal assistance programs and the national debt, for years to come.
Nicknamed by its Republican backers and former President Donald Trump, the bill would pack tax relief, spending cuts, and a debt ceiling increase into a single legislative package. The bill which has broad economic implications for businesses and households alike, has drawn praise, pushback, and a national public policy debate.
A Reconciliation Bill With Wide Reach
The Big Beautiful Bill is fundamentally a budget reconciliation bill, which means Congress can alter federal spending and revenue without the specter of a Senate filibuster. And that makes it likely to pass the Senate with a simple majority — invaluable in a politically divided chamber.
It’s federal budget legislation which combines a number of traditionally separate legislative components (setting a federal budget for the coming fiscal year, proposing major tax reform, large cutbacks in social programs) along with a hike in the debt ceiling. By combining these two, it enables lawmakers the opportunity to cover a variety of different priorities with one massive push, but at the same time, it can backfire due to the lack of dedicated debate on one specific issue.
Key Provisions in the Bill
A plethora of tax and spending measures are contained in the Big Beautiful Bill. At the top of the heap are the extension of key parts of the 2017 Tax Cuts and Jobs Act (TCJA) — whose provisions expire at the end of this year. The third one makes fiscal changes such as expanded standard deductions and reduced corporate tax rates.
In addition, the bill includes new tax cuts for middle-income workers and small businesses. Among those are ending income tax on overtime pay, interest on car loans, and tips, billed as pro-worker reforms meant to encourage economic activity.
But they come along with cuts to some of the most generous of these programs, especially in healthcare and food assistance. The bill would cut funds to Medicare and the SNAP food aid program and eliminate the IRS’ free online tax filing portal. But Democrats, advocacy groups and budget watchdogs have savaged these provisions, saying the burden will disproportionately fall on families struggling to make ends meet.
A Republican Vision — and a Political Gamble
It’s a bill viewed from a Republican’s view, and it’s about lower taxes, smaller government, and higher defense spending. Republicans, who can control both chambers of Congress and the White House, benefit from this put before them. But it sits in its narrow majority with no room for dissent.
While 16 Republicans on the House Rules Committee have signed on as co-sponsors, some are expressing concern over particular elements, with some calling for deeper cuts, others worried about consequences for vulnerable constituents. But this bill made it over a big hurdle in mid-May, when the House Budget Committee voted to approve the measure.
What Happens Next?
Following that, it must clear the full House of Representatives, after which the Senate draws up and votes on its version. The House and Senate versions differ, and a final version will result as a result of amendments or a joint conference committee. The bill will not be sent to the President to sign it into law or veto it until a unified version is finalized.
At each stage, there are opportunities for change, so that the final version can be very different from the current draft. But it’s one of the most consequential bills of the year because of the legislation’s broad scope and ideological heft.
