One Big Beautiful Bill Act
Description
Reduces taxes, cuts spending, increases the debt limit, expands SNAP work requirements, and funds border security and defense programs.
Summary
What it does
This law implements a broad range of fiscal and policy changes, including a $5 trillion increase to the statutory debt limit and the permanent extension of several 2017 tax reforms such as lower individual income tax rates and higher standard deductions. It modifies federal assistance programs by expanding work requirements for SNAP recipients, restricting Medicaid and Medicare eligibility based on citizenship status, and terminating various student loan repayment plans in favor of a new Repayment Assistance Plan. Additionally, the act provides significant funding for border security and military modernization while rescinding numerous energy and environmental grants established by the Inflation Reduction Act of 2022.
Who is affected
This bill affects low-income individuals and families through significant changes to SNAP and Medicaid eligibility, including expanded work requirements for able-bodied adults and new community service mandates for the Medicaid expansion population. It impacts students and borrowers by terminating certain federal loan repayment plans and Grad PLUS loans while increasing Pell Grant funding for workforce programs. Additionally, the act affects a broad range of industries—including oil, gas, and coal producers through revised leasing and royalty structures—and individual taxpayers through the permanent extension of various tax credits and deductions.
Key provisions
- Tax Relief for Individuals and Families. The bill makes permanent several individual tax provisions from the 2017 Tax Cuts and Jobs Act, including lower income tax rates, an increased standard deduction, and a higher child tax credit. It also establishes new deductions for qualified tips, overtime pay, and interest on passenger vehicle loans.
- Business and Energy Tax Reforms. Provisions include permanent 100% bonus depreciation for business property and the immediate expensing of domestic research costs. Additionally, the bill terminates several 'green energy' tax credits, such as those for clean vehicles and energy-efficient home improvements, while enhancing incentives for domestic fuel production.
- SNAP and Medicaid Eligibility and Work Requirements. The act expands work requirements for able-bodied adults without dependents in the SNAP program and introduces new community service or work requirements for the Medicaid expansion population. It also restricts federal funding for these programs to U.S. residents who meet specific citizenship or lawful residency criteria.
- Border Security and Immigration Enforcement Funding. The bill provides significant funding for U.S. Customs and Border Protection and Immigration and Customs Enforcement for border barriers, detection technology, and increased detention capacity. It also establishes new or increased fees for various immigration procedures, including asylum applications and employment authorizations.
- Federal Student Loan and Higher Education Changes. The legislation terminates Grad PLUS loans, sets new borrowing limits for graduate and parent loans, and simplifies repayment into two options: a standard plan and a new income-based Repayment Assistance Plan. It also requires institutions to meet median earning requirements for their graduates to remain eligible for federal student aid.
- Energy Production and Federal Land Management. The bill mandates increased oil, gas, and coal leasing on federal lands and waters, reduces royalty rates for onshore and offshore development, and resumes the oil and gas program in the National Petroleum Reserve-Alaska. It also requires the Forest Service and Bureau of Land Management to increase annual timber sales.
Fiscal impact
- Information Concerning the Budgetary Effects of H.R. 1, as Passed by the Senate on July 1, 2025· As passed by the Senate on July 1, 2025
- Estimated Budgetary Effects of Title VII, Finance, Within an Amendment in the Nature of a Substitute to H.R. 1· As posted on the website of the Senate Committee on the Budget on June 27, 2025
- Estimated Budgetary Effects of an Amendment in the Nature of a Substitute to H.R. 1, the One Big Beautiful Bill Act, Relative to CBO's January 2025 Baseline· As posted on the website of the Senate Committee on the Budget on June 27, 2025
- Estimated Budgetary Effects of an Amendment in the Nature of a Substitute to H.R. 1, the One Big Beautiful Bill Act, Relative to the Budget Enforcement Baseline for Consideration in the Senate· As posted on the website of the Senate Committee on the Budget on June 27, 2025
- Information About the Budgetary Effects of an Amendment in the Nature of a Substitute to H.R. 1, the One Big Beautiful Bill Act, as posted on the website of the Senate Committee on the Budget on June · CBO and the staff of the Joint Committee on Taxation have estimated the effects of the amendment relative to the baseline used for budget enforcement for consideration in the Senate.
- Information Concerning Medicaid-Related Provisions in Title IV of H.R. 1· CBO estimates that enacting the Medicaid provisions in title IV of H.R. 1 would increase the number of people without health insurance by 7.8 million in 2034 relative to baseline projections under current law.
- H.R. 1, One Big Beautiful Bill Act (Dynamic Estimate)· As passed by the House of Representatives on May 22, 2025
- Estimated Budgetary Effects of H.R. 1, the One Big Beautiful Bill Act· As passed by the House of Representatives on May 22, 2025
- Estimated Effects on the Number of Uninsured People in 2034 Resulting From Policies Incorporated Within CBO’s Baseline Projections and H.R. 1, the One Big Beautiful Bill Act· A letter to the Honorable Ron Wyden, the Honorable Frank Pallone, Jr., and the Honorable Richard E. Neal concerning the estimated effects on the number of uninsured people in 2034 resulting from policies incorporated within CBO’s baseline projections and H.R. 1, the One Big Beautiful Bill Act
Effective dates
The bill's provisions take effect at various times, with many tax and program changes beginning in 2025 or 2026, while others—such as state-matching requirements for SNAP and certain Medicaid verification systems—are phased in through 2028 or 2030. Several programs and tax credits are set to expire or revert to previous levels between 2028 and 2034.
Relationship to existing law
This bill amends and extends numerous federal statutes, including the Agriculture Improvement Act of 2018, the Clean Air Act, and the National Environmental Policy Act of 1969. It makes permanent several individual and business tax provisions originally enacted by the Tax Cuts and Jobs Act of 2017 and modifies program requirements for Medicaid, Medicare, and the Federal Employees Health Benefits Program.
Stated purpose
This reconciliation bill aims to adjust federal fiscal policy by reducing taxes, modifying spending across various federal programs, and increasing the statutory debt limit. It seeks to implement legislative priorities including middle-class tax relief, enhanced border security, and reforms to federal assistance and student loan programs.