Trump's 'one big, beautiful bill' offers $1k for newborns, immigration and tax cuts: 10-point explainer

Aiming to re-shape key areas of American policy, US President Donald Trump's expansive 'One, Big, Beautiful Bill Act' is a proposed legislative package in the House of representatives. White House has urged Republicans to ‘unite’ behind Trump's “big, beautiful” tax cuts with White House press secretary Karoline Leavitt saying it’s “absolutely essential” that Republicans unite and pass the bill so that Trump can deliver on the agenda he was elected to enact. Leavitt said Americans gave Republicans a “once-in-a-generation” opportunity to “course correct our country” and “there is no time to waste.”

The bill narrowly cleared a key House committee during a rare vote Sunday night but it has a long journey through Congress to get to Trump’s desk for his signature in the face of opposition from some GOP lawmakers. The 'One, Big, Beautiful Bill Act' is a comprehensive bill which addresses taxes, federal spending and border security issues, leading to significant political debate.

ALSO READ: Memorial Day 2025: Is stock market open in US on Memorial Day? Check details

Here are ten things you need to know about Trump's 'One, Big, Beautiful Bill Act':

-The 1,100-page proposal forms the foundation of Trump’s domestic agenda for a potential second term, combining tax cuts, strict immigration measures, entitlement reforms, and increased defense spending into one streamlined budget reconciliation bill.

-The bill seeks to make the permanent 2017 tax cuts, alongside new temporary tax break tips, overtime and auto loan interest, according to TOI. It also proposes increasing the standard deduction and child tax credit. It slashes taxes on seniors’ Social Security benefits, the White House says.

-The bill would extend tax cuts from President Donald Trump's first term, end taxes on tips and increase military and border spending. The bill also targets substantial federal spending cuts, particularly to Medicaid, through stricter eligibility and work requirements.

-The bill kicks illegal immigrants off taxpayer-funded Medicaid benefits, according to the White House. This bill eliminates waste, fraud, and abuse by ending benefits for at least 1.4 million illegal immigrants who are gaming the system.

ALSO READ: FBI chief Kash Patel, accused of spending more time at nightclubs than office, makes big announcement

-The bill also includes revisions to asylum policies and higher fees for asylum seekers. Controversial provisions—such as a proposed 5% remittance tax and changes to current tax deductions—are drawing strong criticism.

-A significant provision introduces a $1,000 fee for migrants applying for asylum—marking the first time such a charge has been implemented in U.S. history. This move brings the U.S. in line with countries such as Australia and Iran that already impose similar fees.

-A substantial part of the bill is dedicated to border security, including plans to finance wall construction, expand the border patrol workforce, and invest in cutting-edge technology. The White House says, with the help of this bill 701 miles of primary wall, 900 miles of river barriers, 629 miles of secondary barriers, and 141 miles of vehicle and pedestrian barriers will be constructed — along with cutting-edge technology that will secure our homeland for generations to come.

ALSO READ: Did Beyoncé take $10 million to appear at Kamala Harris' rally? Trump makes big claim

-It ends taxpayer-funded sex changes for minors. The One, Big, Beautiful Bill restores sanity to government. It prohibits Medicaid funding for gender transition procedures for minors.

-The bill creates "Money Accounts for Growth and Advancement" (MAGA) accounts, offering a $1,000 federal deposit for babies born from January 1, 2024, through December 31, 2028. Families may contribute up to $5,000 each year, with the funds available for education, job training, or first-time home purchases once the child turns 18. After reaching 30, account holders can use any remaining money for any purpose.

ALSO READ: Jeff Bezos-Lauren Sánchez's wedding cost, guest list revealed: The numbers will take you by surprise

-The legislation designates nearly $150 billion for the Department of Defense and national security efforts. This funding includes $25 billion for the "Golden Dome for America," a proposed missile defense system, $21 billion to restock ammunition, and $34 billion to grow the naval fleet. Additionally, $9 billion is set aside for servicemember housing, healthcare, and special compensation.

In terms of education and student loans, the bill proposes a major overhaul of the student loan program by simplifying repayment plans into two options: a standard plan with payments spanning 10 to 25 years, and a less generous income-driven repayment plan. It also aims to eliminate regulations that allowed loan forgiveness for students defrauded by their colleges. Moreover, the bill calls for a tax increase of up to 21% on certain university endowments.

(With inputs from agencies)