Overview

• President Trump formally enacted the sweeping reconciliation package during a July 4 South Lawn ceremony featuring military flyovers and a White House picnic.
• The law cements permanent extensions of the 2017 Tax Cuts and Jobs Act, adds new deductions for tips, overtime and estate planning, and sustains full business expensing.
• It imposes deep work requirements and cuts of roughly $1.2 trillion to Medicaid and SNAP that nonpartisan analysts warn could strip millions of low-income Americans of benefits.
• With about $165 billion for Homeland Security and billions more for ICE operations and new border barriers, the legislation marks the largest-ever funding boost for immigration enforcement.
• Budget models from the Penn Wharton Budget Model and CBO project an added $3.2 trillion to the deficit over a decade, triggering urgent planning by agencies and revived partisan battles.