In a dramatic all-night session, House Republicans, led by Speaker Mike Johnson, passed a massive legislative package on May 22, 2025, called the “One Big Beautiful Bill Act.” This multitrillion-dollar bill, a cornerstone of President Donald Trump’s agenda, combines tax cuts, spending reductions, and border security measures. Clocking in at over 1,000 pages, it’s a complex mix of policies that could reshape taxes, healthcare, and immigration in America. While it’s a victory for Trump and House Republicans, the bill still faces a tough road in the Senate, where changes are expected. Here’s a breakdown of what’s in the bill and how it might affect you, written for an 11th-grade audience.
Tax Breaks: Big Wins for Some, Less for Others
The bill makes permanent the tax cuts from Trump’s 2017 Tax Cuts and Jobs Act, which were set to expire this year. These cuts lower income tax rates for most Americans, but they benefit wealthier households the most. For example, if you’re in a high-income bracket, you’ll keep more of your earnings. However, if your family earns less than $50,000, the benefits are smaller, and some low-income households might not see much change.
Families get a temporary boost with the child tax credit, increasing to $2,500 per child through 2028 (up from $2,000). After that, it drops back to $2,000 and adjusts for inflation. Seniors over 65 earning less than $75,000 (or $150,000 for couples) can deduct an extra $4,000 from their taxes, but this also expires in 2028.
The bill also delivers on Trump’s campaign promises:
- No taxes on tips or overtime: If you’re a waiter, hairstylist, or work overtime, you won’t pay federal taxes on those earnings through 2028.
- Car loan interest deduction: You can deduct up to $10,000 in interest on loans for American-made cars, also through 2028.
- Higher standard deduction: Individuals get a $1,000 boost (to $16,000), and joint filers get $2,000 more (to $32,000), reducing taxable income temporarily.
For people in high-tax states like New York or California, the bill raises the cap on the state and local tax (SALT) deduction from $10,000 to $40,000 for incomes up to $500,000. This means you can deduct more of your local taxes from your federal taxes, a big deal in states with high property or income taxes.
Businesses also score big. Small businesses can deduct 23% of their income (up from 20%), and companies can fully expense research and development costs and new equipment, encouraging investment. The estate tax exemption jumps to $15 million, helping wealthy families pass on more money tax-free.
To pay for these cuts, the bill eliminates clean energy tax credits from President Biden’s Inflation Reduction Act, like the $7,500 credit for electric vehicles. This could make green energy less affordable and slow efforts to fight climate change, a move critics say prioritizes fossil fuels.
Cuts to Medicaid and SNAP: Who Loses Out?
The bill makes big changes to safety net programs, saving billions but potentially leaving millions without help. Medicaid, which covers 71 million low-income Americans, faces $700 billion in cuts. Starting in 2026, childless adults without disabilities must work 80 hours a month to qualify, and everyone must verify eligibility twice a year instead of once. The Congressional Budget Office estimates 8.6 million people could lose health insurance over the next decade. The bill also blocks Medicaid funds from going to Planned Parenthood, which could limit access to cancer screenings and birth control for millions.
The Supplemental Nutrition Assistance Program (SNAP), or food stamps, helps 42 million people buy food. The bill cuts $267 billion by requiring states to pay 5% of benefits starting in 2028 and expanding work requirements. Adults aged 55–64 and parents of kids over 7 must work to qualify, which could push many off the program. Democrats warn these changes hurt the most vulnerable, while Republicans say they curb wasteful spending.
Border Security and Immigration: A Hard Line
The bill pours $46.5 billion into Trump’s border wall and funds a massive deportation plan, aiming to remove 1 million immigrants yearly and detain 100,000. It adds thousands of Border Patrol and ICE agents and introduces a $1,000 fee for asylum seekers—a first in U.S. history. Other fees, like $3,500 for sponsoring unaccompanied minors, aim to tighten immigration. Critics argue this makes the U.S. less welcoming, while supporters say it strengthens security.
Defense, Education, and More
The bill boosts defense spending by $150 billion, including $25 billion for Trump’s “Golden Dome” missile defense system and $34 billion for naval expansion. It also overhauls student loans, cutting $330 billion by replacing Biden’s income-based repayment plans with a less generous option and taxing university endowments up to 21%. Pell Grants for low-income students face stricter rules, potentially reducing aid.
For kids born between 2024 and 2028, “Trump” savings accounts offer a $1,000 government contribution, which families can grow with $5,000 yearly deposits. At 18, kids can use half for college or home purchases; at 30, they can access it all. Other provisions include removing a $200 tax on gun silencers and increasing drilling and mining on public lands, which could boost energy production but harm the environment.
What’s Next?
The bill passed the House 215-214, a razor-thin margin showing deep Republican divisions. Now it heads to the Senate, where Republicans like Sen. Ron Johnson call it a “sad joke.” Changes are likely, and it must pass again before reaching Trump’s desk. The bill also raises the debt ceiling by $4 trillion to avoid a government default, which could have global economic consequences.
Why It Matters
This bill touches nearly every American. If you’re a tipped worker or parent, you might save on taxes. But if you rely on Medicaid or SNAP, you could face new hurdles. Wealthier families and businesses gain the most, while low-income Americans and green energy take a hit. As it moves to the Senate, keep an eye on how it evolves—it could shape your taxes, healthcare, and more for years to come.