What is in the “ Big Beautiful Bill ” of Trump: Medicaid, Taxes, Maga Accounts

For months, President Donald Trump continued his radical agenda through executive actions. Now comes the difficult part.

The Republicans of Capitol Hill finally put a pen on paper on what Trump called the “Big Beautiful Bill”, a radical tax package which will serve as a masterpiece of the president’s legislative agenda.

The bill includes the GOP priorities such as no tax on advice or overtime, Medicaid cuts, “Maga accounts” for children and several other provisions.

It will take weeks to the legislators of the Chamber and the Senate to develop the end details, and it is likely that certain changes will be made along the way. The Republicans hope to send the bill to the Trump office by July 4.

Here is what you need to know about what is in the “One Big Beautiful Bill”.

The bill includes Medicaid and Millions Cups could lose health coverage

As part of the plan approved by the House Energy and Commerce Committee, the States would implement work requirements in 2029 for children without children on Medicaid who have no handicap, demanding that they work for 80 hours per month.

A component of the plan would increase the price of visits to doctors, forcing beneficiaries to exceed the federal poverty limit to pay co-paids of up to $ 35. States would also be required to stop taxing hospitals and nursing homes to obtain more federal funding.

The beneficiaries of Medicaid in certain states would have more documents to regularly confirm their status of residence and their income. And the plan would reduce the federal funding of certain beneficiaries of the states which finance the medical coverage of undocumented immigrants.

The Budget Office Congress estimated that the legislation would save around $ 912 billion in the next decade of federal spending, of which around $ 715 billion would come from Medicaid and reductions in the affordable care law. The CBO said that around 8.6 million people could lose their insurance coverage.

The plan has taken place among some ultra -presenter who wanted more medical cuts at the federal level. Some GOP leaders wanted ceilings per capita for those of Medicaid expansion states and a lower pace to which the federal government completes the financing of each State for Medicaid programs.

Democrats firmly opposed the bill, stressing that millions of Americans will potentially have their lives uprooted by the Medicaid cups.

No tax on advice or overtime, rendering the 2017 Trump tax reductions permanent, and more

Some of Trump’s most flashy campaign promises were to remove taxes on advice, overtime and social security. This bill made them largely, but only for the next four years – legislators will have to decide to renew the cuts in 2029.

The bill would allow workers from a “profession that traditionally and usually receives advice” to claim a tax deduction for the sum of all the advice they received the previous year. He would also do the same for overtime wages. None of the two deductions is available for anyone is a “highly paid employee”.

To help fulfill Trump’s “without tax on Social Security” guarantee, the Republicans have created a new tax deduction of $ 4,000 for the elderly earning less than $ 75,000 per year. There is also a provision in the bill to keep Trump’s promise without taxes on the interests of car loans.

There is also an extension of the children’s tax credit, which is currently $ 2,000 but which was to decrease to $ 1,000 after this year. The bill would increase the credit to $ 2,500 to 2028, then it would increase to $ 2,000 permanently after that.

If you are thinking of buying an electric vehicle, you may want to do it before the end of the year. The bill would eliminate existing tax credits for new and used electric vehicles, and it would impose annual registration fees of $ 250 for electric vehicle owners.

The bill also makes permanent a series of tax reductions that Trump and the Republicans adopted in 2017. The average American will not feel much difference, because they are probably used to the tax rates and the existing media that have existed since 2018. But it is the most consecutive part of the bill of a budgetary perspective, adding thousands of tickets to the deficit in the coming years.

Maga savings accounts

The bill establishes accounts of “Monetary accounts for growth and advancement”, or Maga accounts for children. The idea was initially proposed by the republican senator Ted Cruz of Texas.

The federal government would pay $ 1,000 to babies born from 2024 to 2028. After the threshold threshold, parents will still be able to put $ 5,000 per year in each account.

Cruz’s proposal is similar to the previous efforts led by Democrats for “baby obligations”, but the biggest difference is that there is no income cut. Senator Cory Booker from New Jersey, a Democrat, planned a program mainly intended for low -income families.

A repeal of Biden student loansing plans

If it is promulgated, the reconciliation bill would mean major changes for borrowers of student housing. The legislation proposes to terminate all the reimbursement schemes of students of students focused on existing income, including Biden’s reimbursement plan on Biden’s income, which would have shortcut the calendar for the reduction of debt and provided cheaper monthly payments. While Save is currently interrupted due to disputes, Trump and republican legislators said they would not make the plan if he survives the court.

Under the invoice, the borrowers would have two reimbursement plan options: one, called the reimbursement aid plan, would allow the loan delivery after 360 eligible payments, and the other option would be a standard reimbursement plan with a fixed monthly payment over a fixed period of time fixed by the service.

Payments made under the reimbursement aid plan would be calculated according to the borrower’s income and would count for the forgiveness of the public service loans.

A 10 -year ban on AI laws at the state level

The legislators of the Chamber presented a major victory to Big Techby, including a 10 -year federal pre -emption on all the laws of artificial intelligence in the broader bill. The Congress spoke of an AI federal policy, but no serious legislative proposal has appeared.

In the meantime, states have tried to fill the void. Large technological companies have long fought AI regulations at the state level. Last year, California legislators adopted the country’s most radical AI legislation only for Governor Gavin Newsom for the veto.

Meta, Openai and Anthropic put pressure against the California bill. Meta recently wrote to the White House that states’ laws “could hinder innovation and investment”.

The problem does not disappear. During the legislative session of 2024, legislators at least 45 states presented bills linked to AI, according to the National Conference of States Legislatures.

Unlike most of the other provisions of this list, the prohibition of AI regulation faces major obstacles to be part of it. Republicans must adhere to strict parliamentary rules to adopt Trump’s bill without facing a democratic obstacle in the Senate. A rule is that all the provisions must be mainly of a fiscal nature, and many expect that the provision of the AI ​​will fail this test.

A debt ceiling hike, the end of the Direct Irs file, money for a border wall, and more

Avoid defect: Republicans would increase the limit of debt by $ 4 billions, preventing a potential defect that could arrive later this summer. In one way or another, Congress will soon have to address the question of debt. The federal government is expected to exhaust its borrowing capacity in August.

Billions for the defense anti -missile: Trump wants the United States to have a futuristic anti-missile defense system inspired by the “Iron Dome” aerial defenses praised from Israel, but the American shield would include space components and will focus on longer-term missile threats rather than weapons smaller Israel. The House Republicans allocated around 25 billion dollars for global anti -missile defense, most of which will go to the “Golden Dome” project.

700 miles more from the Trump border wall: The Republicans proposed to spend about $ 47 billion over the border barriers, which will cover 701 miles of “primary wall”, 900 miles of river barriers and 629 miles of secondary barriers. Trump fought several times during his first mandate to build a massive border wall between the United States and Mexico, but had trouble obtaining funding thanks to the Congress.

A high increase in tax on university provision of major universities: Republicans would considerably increase the Trump revolutionary tax in 2017 on colleges and universities with large endowments. Under the bill, the tax rate would be linked to the size of their endowment, adjusted by registrations for students. At the end, the rate would remain at 1.4%. At the highest level, universities would pay 21% tax if they had an endowment of $ 2 million or more per student.

Direct IRS file: The great beautiful invoice would be officially Kill the IRS direct file programan initiative of the Biden era which has long been a subject of republican anger. In April, a The head of the Treasury Department declared to Bi Whether it was a failed and disappointing program. The new legislation would rather allocate the financing of the study of a public-private partnership in order to provide a free deposit for the majority of taxpayers.