H.R. 1 Analysis

H.R. 1 Analysis

Senate Bill Report

H.R. 1

Passed by Senate: July 1st, 2025

Title: One Big Beautiful Bill

Brief Description: The Big Beautiful Bill is meant to change 4 different things, taxes, federal spending, immigration enforcement, and social programs for the rest of Trump’s second term.

Sponsors: Jodey C. Arrington

Brief History:

Committee Activity:

Passed Senate 6/1/25, 51-50

SENATE BUDGET COMMITTEE

Majority Report: do pass

Signed by: John Barrasso, Marsha Blackburn, John Boozman, Mike Braun, Katie Britt, Shelley Moore Capito, Bill Cassidy, John Cornyn, Tom Cotton, Kevin Cramer, Mike Crapo, Ted Cruz, Steve Daines, Deb Fischer, Lindsey Graham, Chuck Grassley, Bill Hagerty, Josh Hawley, John Hoeven, Cindy Hyde-Smith, Ron Johnson, John Kennedy, James Lankford, Mike Lee, Cynthia Lummis, Roger Marshall, Mitch McConnell, Jerry Moran, Markwayne Mullin, Lisa Murkowski, Mitt Romney, Mike Rounds, Marco Rubio, Rick Scott, Tim Scott, Pete Ricketts, Dan Sullivan, John Thune, Tommy Tuberville, Todd Young, James Risch, Ted Budd, Roger Wicker, Eric Schmitt, Joni Ernst, Jim Baird,

Background: What the Big Beautiful Bill does is implement new policies to change the federal budget by changing the budgets on things such as social programs, border security and enforcement, remittance taxes, and increasing the debt ceiling, and also changing things like taxes.

The Big Beautiful Bill makes big changes to medicaid by restructuring it through tighter eligibility requirements and cutting funds in it by 12% over time, making it more expensive and making it have harder eligibility requirements, reduces exemptions to certain people and expands work requirements for those aged 18-64, and also making heavier requirements for TANF for parents receiving assistance and places limits on some types of cash benefits, reduces funding for rental assistance and creates more verification of income to check if they’re eligible for rent assistance. Overall, supporters of the bill say it reduces federal spending and encourages people to work, while it is also backed by critics, who say it causes millions of Americans to lose coverage and food assistance.

The Bill also greatly increases the budget for border security and immigration enforcement through expanding border security, with $150-$170 billion being invested in it, providing even more billions to build and create new parts of the border. It also gives ICE a big budget raise and a lot more coworkers, new detention facilities, and courts to go against illegal immigrants and deport them. Overall, increasing the effort for deportations against illegal immigrants, which some argue will reduce illegal immigration and make national security stronger, while others say it costs too much.

The remittance tax in the Big Beautiful Bill creates a new 1% fee on many types of money transfers sent from the U.S. to other countries. It was designed to raise federal revenue to offset the bill’s tax cuts and encourage the use of regulated banking channels. Supporters say it will fund government programs and reduce untracked transfers, while critics argue it harms immigrant families and pushes money into less safe, unregulated methods.

The Big Beautiful Bill raises the debt ceiling by about $5 trillion so the government can borrow enough money to pay for existing obligations and for the bill’s major tax cuts and border-security expansions. Supporters say raising the debt ceiling prevents default and keeps the government stable, while critics argue it adds trillions to the national debt and increases long-term deficits.

To change taxes is cutting taxes on workers, families, and seniors which will reduce the cost of living for the American people, It also makes tips tax free which allows people to keep more money to spend as well as social security benefits, it increases the child tax credit, raises the SALT deduction cap, introduces a small tax on certain international affairs, and in general over time lowers taxes.

With all of these things coming from the Big Beautiful Bill to try and reduce the federal budget. The federal Budget will still not decrease but increase and raise the national debt.

And along the lower taxes comes the decrease of funding for social programs such as Medicaid or creating more eligibility requirements for these programs to apply to you, having to pay for fewer peopl,e but these cuts are still too small compared to tax cuts and border protection spending, making little impact on reducing the federal budget

And even with this lower income from taxes and having to pay for fewer social programs, they will still have to pay a hefty 150$-170$ billion for border security, such as wall construction and building new detention centers, etc. It will take a lot of the money that the government can use for other things. Ultimately, these attempts at reducing the federal budget will not work and end up adding around 2.8$-3$ billion to the national debt.

Some things to make the bill better and actually do what it's intended to do is making tax cuts more balanced no matter what social/income class, adding stronger protections against for people in danger of losing healthcare, making border spending more transparent, reduce through better funding sources, strengthening immigration-court capacity, and creating oversight systems to ensure the bill works as intended.

Summary of Bill:   Early into President Trump's 2nd term, lots of economic/tax policies had to be renewed or changed. To fix this, the Big Beautiful Bill was created to change or create new economic acts for his second term, with some problems before the Big Beautiful Bill, including rising costs of living, growing federal deficit, Immigration problems, etc.