What’s in Trump’s ‘One Big Beautiful Bill’? Tax cuts, border wall, and major spending changes | All you need to know

The Republican-led US Senate approved Donald Trump's flagship spending bill Tuesday after a marathon voting session on the deeply unpopular package, set to slash social welfare programs and add an eye-watering $3 trillion to the national debt.

Here’s what the Senate version of the bill includes.

Tax cuts extended and expanded

The bill would make permanent the individual tax cuts from Trump’s 2017 Tax Cuts and Jobs Act, which are set to expire this year. It would also increase the standard deduction to $32,000 for couples and $16,000 for individuals.

Families with children would see a modest increase in the child tax credit, up to $2,200 per child, adjusted for inflation. However, only those with valid Social Security numbers would qualify, excluding many non-citizen parents.

New tax breaks for workers and seniors

The legislation includes several new deductions:

• No taxes on tips in eligible professions like food service and beauty care.

• No taxes on overtime pay, with restrictions.

• No taxes on car loan interest (up to $10,000) for those buying US-made vehicles.

• Extra $6,000 deduction for seniors over 65.

Major cuts to social safety nets

The bill would cut Medicaid funding and add work requirements. It limits how states collect extra federal funds through provider taxes. A new $25 billion rural hospital bailout fund is introduced to ease the effects of those cuts, starting in 2028. For SNAP (food stamps), the plan caps future expansion and pushes more costs to states. Starting in 2027, the federal government would only pay 25% of administrative costs, down from 50%.

$170 billion for border security and immigration crackdown

According to the Congressional Budget Office, the bill sets aside nearly $170 billion for immigration enforcement:

• $46 billion for completing Trump’s border wall and maritime barriers.

• $70 billion for new detention centres and deportation transport.

• Additional funds for expanding immigration courts and border agents.

Repeal of student loan forgiveness and climate change funding

The bill would cancel Biden’s student loan relief program, saving an estimated $320 billion over 10 years.

It also slashes major parts of Biden’s climate law:

• Ends the $7,500 electric vehicle tax credit.

• Phases out clean energy incentives.

• Accelerates fossil fuel production by forcing new drilling leases and easing coal regulations.

More for the military, but less for education

The bill includes $158 billion for defence spending, with:

• $25B for defence supply chains.

• $34B for Trump’s “Golden Dome” missile defence system.

• $329B for shipbuilding and space technology.

Universities face higher taxes under a new tiered endowment tax:

• Up to 8% for schools with endowments over $2 million per student.

Newborn savings accounts and education tax credits

Each newborn would receive a $1,000 “Trump Account”, with families allowed to contribute up to $5,000 per year until the child turns 31. The bill also creates $4 billion in yearly tax credits for people who donate to organisations supporting private school and homeschooling scholarships.

Other major provisions

• Raises the debt ceiling by $5 trillion to prevent a default later this year.

• Orders the sale of some federal lands (excluding national parks) to build housing.

• Renews the FCC’s authority to auction wireless spectrum, potentially raising $85 billion.