Donald Trump's 'Big Beautiful Bill' Explained: Tax Cuts On Tips, Medicaid Requirements, More

(MENAFN- Live Mint) The The Republican-controlled United States Senate on Tuesday, July 1, narrowly advanced Donald Trump's tax-cut and spending bill, also known as 'One Big Beautiful Bill' and will now be presented before the House of Representatives for clearance to become a law.

The 'One Big Beautiful Bill' increases spending for border security, mass deportation and slashing Medicaid and food stamps. The Congressional Budget Office or the Joint Committee on Taxation has estimated that Donald Trump's tax bill would add $3.3 trillion to the $36.2-trillion debt over 10 years, reduce revenues by $4.5 trillion and cut spending by $1.2 trillion.

As the Big Beautiful Bill looks one step away from clearing the hurdle to become a law, here are the key takeaways from the megabill.

INDIVIDUAL TAX CUTS

After becoming president in 2017, Donald Trump signed the Tax Cuts and Jobs Act, which lowered taxes and raised the standard deduction.

Those tax breaks are set to expire this year, but the new 'Big Beautiful Bill' would make them permanent and slightly increase the standard deduction until 2028.

The bill exempts taxes on overtime pay until 2029 .

It also exempts taxes on some tipped income until 2029.

Creates a new deduction of up to $6,000 for people age 65 and older until 2029.

The bill expands deduction limit for state and local tax (SALT) from $10,000 to $40,000 until 2029.

It also exempts up to $1,700 for contributions to scholarship funds for private schools.

MEDICAID CUTS, OTHER HEALTH PROGRAMS

If Donald Trump's 'Big Beautiful Bill' passes though House of Representatives, Medicaid would now require able-bodied adults who have no children to work, volunteer or be in school at least 80 hours a month starting in 2027.

It excludes some non-citizens from the program and penalises states that use their own funds to provide coverage to them.

It blocks regulations that required minimum staffing levels at nursing homes and other long-term care facilities

It also prohibits funding for gender transition therapies for minors. Also Read | Elon Musk, Donald Trump divided by 'big beautiful bill', united by conflicts: What happened in last 24 hours

It blocks funding to major providers like Planned Parenthood that focus on birth control, abortion, and other reproductive health services.

FOOD AID PROGRAMS

The new bill increases work requirements for some of the 41 million participants in the Supplemental Nutrition Assistance Program (Snap) food aid program.

It shifts some costs from federal government to states for them to contribute more to the food aid programs.

It also bars some non citizens from benefits.

The change would start in 2028.

IMMIGRATION AND JUSTICE

The new 'One Big Beautiful Bill' would provide money for border wall construction to block immigrants from illegally enter the country.

It funds surveillance towers, drones and other border-security equipment.

The bill increases staffing for immigration enforcement, border control, and immigration courts, and also expands detention capacity.

It increases law enforcement protection of the president. It also adds funding to investigate visa fraud and other immigration-related crimes.

MILITARY

It increases spending on shipbuilding and adds additional funds for air and missile defense.

It allocates funds for munitions and nuclear weapons, and supports military operations that assist with border security.

(With Reuters inputs)

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