05.07.2025 08:00
U.S. President Donald Trump signed a massive budget and tax bill, which he referred to as the "Great, Beautiful Bill," on July 4th, Independence Day. The bill will implement a total of $4.5 trillion in cuts and significant reductions in social welfare programs. While Democrats view the legislation as a tax break for the wealthy, some Republicans are concerned.
U.S. President Donald Trump signed into law the massive budget and tax bill he described as the "Big, beautiful piece of legislation" during a ceremony held on the South Lawn of the White House on Friday afternoon, after weeks of work. The signing ceremony, timed to coincide with the July 4 Independence Day, was held to celebrate both American independence and Trump's biggest legislative victory of his second term. The event featured low-flying bombers, and a fireworks display was held at the National Mall.
In his speech at the signing ceremony, Trump referred to the bill as "the largest of its kind in history." The President stated, "Whether you are a soldier or another American, this is the most popular piece of legislation ever signed."
The law extending the tax cuts enacted during Trump's first term in 2017 brings a total of $4.5 trillion in new cuts. The bill also significantly funds immigration practices and defense spending.
Major cuts to social assistance
To cover the new spending and revenue losses, a $1 trillion cut will be made from the Medicaid program. Additionally, food assistance programs will also be severely restricted. The independent Congressional Budget Office (CBO) predicts that these measures will increase the federal budget deficit by $3.3 trillion. According to analyses, approximately 12 million Americans could lose their health insurance.
Republicans are anxious, Democrats are angry
Some Republicans have indicated that cuts to social safety net programs could leave them vulnerable ahead of the midterm elections in 2026. Democrats, on the other hand, describe the bill as "a tax break for the rich, a blow to the poor."
While Democrats argue that Trump is targeting the poor to reward his wealthy supporters, the Trump camp highlights the elimination of tip taxes and the funds allocated for immigration practices as the "people-friendly" aspects of the bill.
"Has anyone had a better two weeks?"
Military families and members of Congress were invited to the signing ceremony at the White House. At the end of the ceremony, House Speaker Mike Johnson presented Trump with the gavel used to close the vote in the House of Representatives. Trump struck the gavel, asked, "Are we ready?" and then said, "This must be the best two weeks. Has anyone had a better two weeks?" - WASHINGTON