By skyforbes 
On July 3, 2025, House Republicans delivered President Donald Trump his first major legislative victory of his second term by passing the One Big Beautiful Bill, a sweeping domestic policy package that now heads to the president’s desk for signature.
The legislation includes permanent tax cuts, increased defense and border funding, and the most significant rollback of the federal safety net in decades. For Trump, it is not just a policy win, but a defining moment that fulfills core promises from his 2024 campaign.
Earlier this week, the White House released a document titled “Myth vs. Fact: The One Big Beautiful Bill,” defending the bill’s contents and attempting to dismiss criticism from Democrats, nonpartisan institutions, and advocacy groups. But how much of that defense holds up under scrutiny?
This article evaluates the White House’s key claims, compares them to independent data, and explores what this bill means for working families, state governments, and the future of social programs in America.
Does the Bill Cut Middle-Class Taxes?
White House claim: The bill delivers historic tax relief, returning more than $10,000 annually to a typical working family.
What’s true: The legislation expands the standard deduction, eliminates federal taxes on tips and overtime pay, and lowers rates across multiple income brackets, all of which provide benefits to middle-income families.
What’s misleading: That $10,000 figure is a highly skewed average. According to the Tax Policy Center, the top 1% of earners receive an average annual tax cut of approximately $78,000, compared to $870 for households in the bottom 40%.
“Tax cuts under the One Big Beautiful Bill are front-loaded toward the highest earners.” Tax Policy Center, June 2025
The benefits to the middle class are real but modest, and many may find them offset by reduced access to healthcare or social assistance.
Are Medicaid and SNAP Protected?
White House claim: The bill “protects and strengthens” Medicaid and SNAP by targeting fraud and promoting dignity through work.
What the data shows:
- The Congressional Budget Office estimates that Medicaid spending will be reduced by $900 billion over 10 years.
- An estimated 10 to 12 million Americans could lose coverage, particularly able-bodied adults without dependents.
- SNAP (food stamp) recipients will face new work reporting requirements that critics argue are burdensome and punitive.
“These are not paper cuts. These are structural changes that make it harder to qualify, stay enrolled, or even understand what you’re eligible for.” Center on Budget and Policy Priorities, May 2025
While the White House frames these changes as reform, opponents argue they effectively exclude millions from vital programs.
Will the Bill Reduce the Deficit?
White House claim: The bill will reduce the federal deficit by over $2 trillion through economic growth and the elimination of fraud and abuse.
What CBO projects: A net increase in the deficit of $2.4 to $3.3 trillion over the next decade. The major drivers are tax cuts, defense and border spending, and the permanent extension of 2017-era provisions.
“If passed in full, this legislation would become one of the most expensive single bills in modern U.S. history.” Congressional Budget Office, June 2025
The White House has offered no independent modeling to substantiate its savings claim.
Is the Bill Pro-Worker and Pro-Small Business?
The bill includes several provisions aimed at workers and business owners:
- Permanent 20% deduction for small business income
- Full expensing for domestic manufacturing
- Expanded Opportunity Zones
- No federal tax on overtime or tips
While these elements may increase take-home pay and investment, analysts warn the impact may be limited for low-income workers losing access to healthcare or food assistance.
“The overtime exemption is real, but if you’re losing your Medicaid coverage at the same time, it’s hard to argue that you’re better off.” Tax Foundation, July 2025
Who Wins and Loses Under the Big Beautiful Bill?
Winners
- Top earners: Receive the largest tax cuts in dollar terms
- Business owners: Benefit from permanent pass-through income deductions
- Defense contractors and border states: See major funding increases
- Conservative state governments: Gain more control over social safety nets
Losers
- Low-income families: Risk losing Medicaid and SNAP benefits
- Medicaid expansion states: Face steep reductions in federal support
- Uninsured Americans: Projected increase in the uninsured population
- Middle-class taxpayers: Receive modest benefits, often offset by service cuts
The bill is a redistributive shift, redirecting public resources from safety nets to tax relief and defense spending.
What Happens Next?
Immediate Implementation
The president is expected to sign the bill into law within days. Federal agencies like the Department of Health and Human Services and the IRS will begin issuing regulations for implementation, including how work requirements are verified and how new tax rules are applied.
State Reactions
- California, New York, and Michigan have signaled lawsuits to block Medicaid changes.
- Texas, Florida, and Georgia have embraced the reforms and are already planning to implement new restrictions.
- Advocacy groups are preparing legal challenges to the work requirement provisions.
2026 Midterm Elections
Democrats plan to run against the bill’s cuts, framing it as a threat to working families. Republicans are rallying around it as a return to fiscal sanity and pro-growth economics. The bill is already shaping the political terrain for the next election cycle.
Final Analysis
The One Big Beautiful Bill is one of the most consequential pieces of domestic legislation in decades. It delivers real tax relief and fulfills long-standing conservative goals. At the same time, it dramatically restructures the American safety net, limiting access to healthcare and food assistance for millions while increasing the national debt.
The American people now face a fundamental question: Is this a course correction or a deeper division between those who gain from the system and those left behind?
This moment deserves more than partisan talking points. It demands facts, transparency, and the political courage to question whether “beautiful” policies truly serve the most vulnerable among us.
Bibliography & Sources
- Ferris, S., & Rimmer, M. (2025, July 3). House passes Trump agenda bill, handing president first big legislative win of second term. CNN.
- Tax Policy Center. (2025, June). Distributional Analysis of the One Big Beautiful Bill. https://www.taxpolicycenter.org
- Penn Wharton Budget Model. (2025, June). Macroeconomic and Distributional Effects of the One Big Beautiful Bill. https://budgetmodel.wharton.upenn.edu
- Congressional Budget Office. (2025, June). Cost Estimate for H.R. XXXX, The One Big Beautiful Bill. https://www.cbo.gov
- Center on Budget and Policy Priorities. (2025, May). Work Requirements in OBBB Would Cut SNAP and Medicaid Access for Millions. https://www.cbpp.org
- Health Affairs. (2025, May). Coverage Loss Estimates Under the Trump Domestic Policy Bill. https://www.healthaffairs.org
- Tax Foundation. (2025, July). Analysis of Pro-Growth Provisions in the One Big Beautiful Bill. https://taxfoundation.org