President Donald Trump achieved a significant political victory with the final adoption of a sweeping budget bill by Congress on Thursday, July 3.
Dubbed the “One Big Beautiful Bill,” the legislation consolidates numerous campaign promises made by Trump, making its success a critical issue for him.
In a display of unwavering support, Trump pressured divided Republican lawmakers, leveraging threats to ensure congressional backing for a bill that is poised to heighten both public debt and economic inequality.
Scheduled for signing on July 4, Independence Day, the legislation extends tax cuts first established in 2017 during Trump’s inaugural term, which were set to expire at the end of 2023, alongside other various tax exemptions.
Moreover, the bill increases funding for defense and border security, but it does so at a cost.
To balance these significant tax cuts, Congress has opted to reduce funding for Medicaid, a health insurance program designed for low-income and disabled citizens, while also cutting food assistance programs aimed at vulnerable populations.
In a further blow, the bill revokes the tax credits initiated by President Joe Biden that supported the country’s energy transition.
Critics argue that this legislation reverses the promise made by Trump to restore hope to America’s working class.
Labeling the ruling, ‘Robin Hood in reverse,’ detractors contend it amounts to taking from the poor to enrich the wealthy.
The wealthiest 10% are projected to receive tax savings amounting to thousands of dollars, while upwards of 11 to 15 million individuals may lose their health insurance, with millions more facing cutbacks in food assistance access.
Although Congress has set the implementation of these measures for after the midterm elections in November 2026, the overarching intent of the bill is evident.
Polls indicate that two-thirds of Americans oppose it, raising concerns about how this clear shift toward redistributing wealth to the affluent may reflect negatively on the Republican Party during upcoming elections.
The bill also prioritizes fossil fuel industries, effectively eliminating support for renewable energy investments.
Research from Zero Lab, a Princeton University group, estimates that the legislation could contribute to a 10% rise in carbon dioxide emissions.
By sidelining the energy transition, the United States risks falling behind in a vital sector, especially as competition from China escalates.
This budget bill is characterized by unchecked expansion, with projected increases in national debt surpassing $3.3 trillion over the coming decade.
The Republican Party appears to advocate for budget discipline while in opposition, yet demonstrates an ability to spend liberally when in power.
Against a backdrop of persistent inflation and rising interest rates, the long-term economic ramifications of this legislation could be detrimental.
Increasingly anxious investors are demanding higher risk premiums to invest in U.S. debt.
By promoting this budget bill, Trump seems to dismiss warnings from the bond market, which have intensified in recent weeks.
While Trump’s political victory may be assured, the anticipated costs to the nation could be profoundly significant.
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