This Word Means: Big, Beautiful Bill

What is the bill?

The White House has described the One, Big, Beautiful Bill as a “generational opportunity to deliver the long-term changes Americans voted for.”

Quite simply, the “Big, Beautiful Bill” is a policy tax and spending megabill, currently 1,116 pages long. Among other things, it aims to

• Expand the scope of Trump’s 2017 tax cuts to the wealthy while introducing new tax breaks,
• Cut federal spending and increase defence spending,
• Raise the debt ceiling by up to $5 trillion.
• Fund mass deportations of undocumented immigrants

According to the White House, the bill will modernise air traffic control and “completely overhaul the systems that keep Americans flying safely and efficiently”, as well as ending “taxpayer-funded sex changes for minors.”

Why are some Republicans opposed to the bill?

“This bill falls profoundly short,” according to Texas Republican Chip Roy, who voted against the measure. “It does not do what we say it does with respect to deficits.”

The opposition at this stage is surprising, given that the passage of the bill through the Budget House Committee is generally a rubber-stamp of approval before the floor test. However, the opposition at this stage need not be permanent and appeasing the differences raised by the dissenting lawmakers could ensure its passage by the proposed Memorial Day (May 26) deadline.

1. 01

   Extent of cuts

   A section of the Grand Old Party (GOP) has advocated for steeper spending cuts. Currently, the tax breaks from this package would amount to $4.9 trillion, paid in part by spending cuts in Medicaid, the public health programme which benefits lower-income Americans. Four of the dissenting lawmakers said that the cuts needed to be steeper to reduce the public debt (currently at $36 trillion according to US Treasury data)

2. 02

   Medicaid

   In its current form, the bill requires states to deny Medicaid coverage if able-bodied Americans benefiting from it are not working at least 80 hours a month, or otherwise undertaking other community options, or cannot prove these, from 2029. The dissenting lawmakers want the work requirements to be implemented immediately, and not after Trump’s term has ended.

   Another group of Republicans have opposed cuts in Medicaid coverage, fearing it will affect millions of lower-income citizens.

3. 03

   SALT deductions

   Unrelated to the condiment, SALT stands for State and Local Tax deductions, which were restricted to $10,000 in Trump’s 2017 tax law. A section of lawmakers hailing from states with high property taxes and costs of living, like New York, California and New Jersey, have opposed the bill’s current ceiling, saying it is not high enough.

   According to a BBC report, some ‘Salt Republicans’ demand the cap be raised to $62,000 for individuals and double for couples filing jointly. In a compromise, House Republicans are reportedly attempting to raise the SALT cap to $40,000 for individuals and $80,000 for couples, according to the report.

4. 04

   Climate tax credits

   The dissenting GOP lawmakers want to immediately scrap clean-energy tax credits under the Inflation Reduction Act introduced by former President Joe Biden. The current bill pushes to phase these out by 2029.

   The bill will also phase out a $7,500 tax break to push people to buy electric cars, and also proposes tax break restrictions for power plants and factories building solar panels and allied technologies using components sourced from China.

   However, 21 House Republicans in March urged against cutting energy credits, since about 73% of its beneficiaries hailed from Republican states, according to US Department of Energy data. They are likely to remain opposed to this section of the bill as well.

What comes next?

The Budget Committee will now reconvene on Sunday night to consider the bill and work on appeasing the hardliners within the party.