President Trump’s One Big Beautiful Bill Act, a budget reconciliation bill, passed the U.S. Senate on July 1, 2025, with a 51–50 vote, requiring Vice President JD Vance to cast the tie-breaking vote. The bill, which extends the 2017 Tax Cuts and Jobs Act, reduces non-military spending, adds stricter Medicaid and SNAP eligibility requirements, allocates $150 billion for defense, scales back clean-energy tax credits, and adjusts the state and local tax (SALT) deduction cap, faced opposition from some Republicans, including Senators Rand Paul, Thom Tillis, and Susan Collins.
Provisions Affecting Federal Employees Removed:
Several provisions targeting federal employees were removed from the Senate version after the Senate Parliamentarian ruled they violated the Byrd Rule, which ensures reconciliation bills focus on budgetary matters. These included:
- An increase in the FERS contribution rate and a requirement for new federal hires to choose between at-will employment or a higher Federal Employees Retirement System (FERS) contribution rate (9.4% or up to 15.6%).
- A $350 filing fee for Merit Systems Protection Board (MSPB) appeals.
- A 10% fee on federal payroll deductions, such as union dues.
- Charges for federal unions’ use of official time and agency resources.
- Bonuses for federal employees identifying “cost-cutting” measures.
- Elimination of funding for U.S. Postal Service electric vehicles.
- Authority for broad executive reorganization of federal agencies without Congressional oversight.
Remaining provisions include an audit of the Federal Employees Health Benefits (FEHB) program to ensure eligibility (estimated to save $2.1 billion over a decade) and $100 million for the Office of Management and Budget to find budget efficiencies.
Next Steps:
The One Big Beautiful Bill Act now returns to the House of Representatives, which passed its version on May 22, 2025, by a 215–214–1 vote. The House must approve the Senate’s amended version without further changes to send it to President Trump’s desk for signing, as urged by Trump, Speaker Johnson, and Senate Majority Leader Thune. However, opposition from House moderates (e.g., David Valadao, Jeff Van Drew, Young Kim over Medicaid cuts, and Nick LaLota over SALT changes) and fiscal conservatives (e.g., Chip Roy, Keith Self over deficit concerns) may complicate passage. If the House amends the bill, it would return to the Senate for another vote. The Republican self-imposed deadline for final passage is July 4, 2025.
The Congressional Budget Office estimates the One Big Beautiful Bill Act would add $3.3 trillion to federal deficits over 10 years.
