The signing of a breakthrough legislative act had a binding worthy of an independence day: The B-2 bomber escorted by the F-35 fighters flew over Washington. As the organizers assured, this show was to pay tribute to soldiers participating in the American military operation aimed at nuclear purposes in Iran. At the end of the day, a fireworks showing celebration is planned.
As Axios notes, the adoption of this budget act may be a breakthrough for Trump and Republicans, which will significantly change the US fiscal policy for the coming years. The president himself in his speech stated that this is one of the most important achievements of his administration.
Formally called “one great beautiful law” (“One Big Beautiful Bill Act”), the project contains a number of tax and social solutions in accordance with the Trump’s political line. It fixes temporary tax cuts from 2017, introduces tax exemptions for tips, overtime or social security benefits. On the other hand, it provides for deep restrictions in social assistance programs, such as Medicaid, subsidies for health insurance in Obamacare or vouchers for the purchase of food (SNAP). Severe fees for people applying for asylum have also been added, the budget for migrant deportations and borders’ security was increased. At the same time, defense expenses are to record a one -time increase of $ 150 billion, thus achieving a symbolic barrier of $ 1 trillion.
Controversial law
However, the bill aroused a lot of controversy. The Congress Budget Office (CBO) has calculated that despite the cuts of social expenses, the regulations will increase the budget deficit by $ 3.8 trillion. within 10 years. According to this analysis, the introduction of a law may also cause loss of health insurance by almost 12 million Americans.
No less disturbing is the data presented by Yale Budget Lab. On the reform, the best -off people are to gain the most – 20 percent. Americans with the highest income will record an increase in earnings by an average of 2.2 percent, i.e. 5.7 thousand. hole. annually. The biggest blow will fall on the poorest 20 percent, the income of which will reduce by 3 percent, which translates into a loss of about $ 700. annually.
The legislative process related to the Act did not go without problems. To vote the project in Congress, the Republicans took advantage of the minimum majority of votes, despite the opposition and their own moderate and radical wing. Some of them expressed concerns about the limitations in Medicaid, while others criticized the increasing deficit. Elon Musk, a billionaire and former adviser to Trump, also took the floor on the matter, who openly criticized the direction chosen by the administration.
