Tax cuts to a debt ceiling increase: Here’s what’s in the ‘Big, Beautiful Bill’

In a sweeping new fiscal package, Congress unveiled a major overhaul of tax policy, federal spending, and entitlement programs with President Trump’s Big Beautiful Bill.

The proposal includes a permanent extension of key provisions from the 2017 Tax Cuts and Jobs Act, significant new investments in defense and border security, and stricter eligibility requirements for Medicaid and federal student loans.

Here’s a breakdown of what’s in the plan.

Taxes

• Permanent extension of much of the 2017 Tax Cuts and Jobs Act
• Deduction for qualified tip wages capped at $25,000 and overtime pay capped at $12,500 for individuals for three years
• Standard deduction gets increased by $750 for single fliers, to $15,750
• Child tax credit increased to $2,200
• Car loan interest deduction of up to $10,000 for individuals making under $100,000 annually (couples under $200,000) who purchase U.S.-made vehicles
• State and local tax deduction cap raised to $40,000 through 2029
• Excise tax on endowments goes up to 8% on wealthy colleges with at least 3,000 students, while imposing lower rates of 4% or 1.4% on institutions with fewer assets

New spending

• Debt ceiling increased by $5 trillion
• Nearly $150 billion in additional border security spending, including $46.5 billion to construct a U.S.-Mexico border wall and about $30 billion to Immigration and Customs Enforcement
• Approximately $154 billion in additional defense spending, including $25 billion for the president’s space-based “Golden Dome” missile defense system and $29 billion to boost shipbuilding
• $50 billion in funding for rural hospitals in Medicaid
• New “Trump” savings account for parents and guardians of children born between Jan. 1, 2024, and Dec. 31, 2028, with the feds providing an initial $1,000 seed money

Cuts and restrictions

• Mandated 80-hour-a-month Medicaid work requirement for able-bodied adults and adults with children 15 and older
• Millionaires are restricted from receiving unemployment benefits
• Restrictions on large abortion providers, such as Planned Parenthood, from receiving Medicaid funding
• Lifetime borrowing limit of $257,500 for federal student loans; borrowing for professional degrees capped at $50,000 per year and $200,000 lifetime; for graduate students, unsubsidized loans capped at $20,500 per year and $100,000 lifetime