Leave a Reply

One Big Beautiful Bill Act Passed

Dailyfed Staff

July 8, 2025

Sharing is caring!

The “One Big Beautiful Bill” Act passed the House of Representatives on July 3, 2025, with a 218–214 vote, after Senate approval on July 1, 2025, by a 51–50 vote, with Vice President JD Vance casting the tie-breaking vote. The bill initially included provisions targeting federal employees’ benefits, such as increased retirement contributions and at-will employment options. However, the Senate parliamentarian ruled that these provisions violated the Byrd Rule, leading to their removal from the final legislation. Previous revisions had already removed proposals that would eliminate the Retiree Annuity Supplement and standardize FERS contribution rates.

The Medicaid modifications in the One Big Beautiful Bill Act, which sparked strong opposition from Democrats, give states greater flexibility to design their own programs, allowing them to tailor eligibility criteria and benefits packages to reduce costs. It introduces optional work requirements for able-bodied adults, a provision that led to significant debate over potential barriers to healthcare access. While earlier drafts proposed substantial Medicaid cuts, the final bill moderates these reductions, maintaining core benefits but tightening eligibility in certain states to balance fiscal concerns with healthcare access.

While many federal agencies are undergoing significant reductions, U.S. Customs and Border Protection will get $20 billion to strengthen enforcement along the U.S.-Mexico border. Another disputed provision in the reconciliation bill, this funding supports the hiring of additional Border Patrol agents, the construction of physical barriers, and the deployment of advanced surveillance technologies, including drones, sensors, and AI-driven monitoring systems. The legislation also bolsters resources for Immigration and Customs Enforcement (ICE), enhancing detention facilities and streamlining deportation processes to address immigration control more effectively.

Another major component of the bill is extending Trump’s 2017 tax cuts. Those significantly reduced the corporate tax rate, aiming to spur business investment and job creation. For individuals, income tax rates were lowered across most brackets, and the standard deduction was increased to benefit middle-income households. Additionally, the bill introduces targeted tax credits for domestic manufacturing and energy production, designed to enhance economic competitiveness and encourage growth in key industries. Taxes have also been eliminated on overtime and tips, and an enhanced senior deduction could reduce taxes on Social Security.

House Minority Leader Hakeem Jeffries delivered a record-breaking speech lasting over eight hours and 44 minutes, using the “magic minute” to delay the bill’s passage and criticize its impact on Medicaid and SNAP benefits.

Visited 27 times, 25 visit(s) today

Subscribe to our Newsletter

Join our newsletter to stay ahead with the latest news and insights crafted exclusively for federal employees.
Close