Republicans have officially passed President Donald Trump’s massive new legislation, named the “One Big Beautiful Bill.” It’s a sweeping 887-page bill that touches nearly every part of the government: from taxes and safety net programs to clean energy and immigration.

Here’s a simple breakdown of what this law will do and how it might impact Americans.

Taxes: Extensions, new deductions, and big wins for the rich

One of the main things this bill does is make Trump’s 2017 tax cuts permanent. These cuts were originally set to expire in 2025, which would have meant higher taxes for many if nothing changed. Now, those rates are here to stay.

The bill also introduces new deductions that aim to help workers:

  • Up to $25,000 in tip income can now be tax-free.

  • There’s a $12,500 deduction for overtime earnings.

  • Seniors can deduct $6,000.

  • Interest on loans for new U.S.-made cars will be deductible too.

Trump is also introducing “Trump Accounts” — savings accounts for children where the government will invest $1,000 per child.

At the same time, wealthier Americans come out ahead:

  • Business owners in partnerships and LLCs will continue getting tax breaks.

  • Estate tax exemption goes up; only estates above $15 million will be taxed.

  • The SALT deduction cap, a tax benefit that helps people in high-tax states, is raised from $10,000 to $40,000.

Businesses also benefit from this, as the bill locks in tax breaks for research, depreciation, and interest deductions.

Analysts say that while some middle-class people may benefit, most of the gains go to the wealthiest, and cuts to social programs hit low-income groups hardest.

Safety net: Cuts to Medicaid, food stamps, and student loans

Despite earlier promises, the bill cuts deeply into Medicaid, the public health insurance program for low-income Americans. New work requirements and changes in how states manage funding could cut spending by 18%. Around 12 million people could lose coverage, according to the Congressional Budget Office.

Food stamp benefits (SNAP) will also shrink, possibly by 20%. New work rules and a larger cost burden for states could result in fewer people getting help. One unusual addition to the bill even gives states a reason to make payment errors, because higher error rates mean delayed cost increases.

Student loan programs are also getting overhauled. Many repayment options will be eliminated, future borrowers will qualify for fewer benefits, and borrowers may have to pay back more than before.

Clean energy: Biden’s green plans rolled back

The bill also aims directly at clean energy. Many of the tax credits and incentives created under the Inflation Reduction Act, meant to boost solar, wind, and electric vehicle industries, will be rolled back or cancelled.

Tax credits for electric vehicles and home energy upgrades will disappear. Credits for clean electricity production (especially for wind and solar) will end faster than others.

There’s also a new rule requiring clean energy projects to reduce their use of Chinese-made components, which could make production more difficult and expensive.

New spending: Immigration and military boost

Even as the bill cuts healthcare and social programs, it increases spending in other areas, especially on immigration and defense.

About $175 billion will go toward immigration-related efforts:

  • $50 billion for the border wall and border facilities.

  • $45 billion to expand detention centers.

  • $30 billion for immigration enforcement.

The bill also gives around $150 billion to the military. This includes money to start work on Trump’s “Golden Dome” missile defense system, as well as funding for new ships, weapons, and equipment.

The debt: Adds at least $3 trillion

Despite cutting many programs, the bill’s tax breaks and spending will still add around $3 trillion to the national debt, according to independent budget experts.

Every recent president has increased the debt, but this bill adds a large chunk in one go. And with interest payments already rising, experts say this could strain the economy over time.

The “One Big Beautiful Bill” reshapes federal priorities by:

  • Locking in major tax cuts

  • Reducing support for low-income Americans

  • Rolling back clean energy investments

  • Pumping more money into border security and defense

Whether this strategy will work politically or economically remains to be seen, but for now, it’s set to become law, with Trump expected to sign it on Friday.