Trump’s One Big Beautiful Bill clears House and Senate
On the afternoon of July 4, President Donald Trump signed his “One Big Beautiful Bill” into law after it was cleared earlier in the week by both the House and Senate.
At its core, this sweeping tax and spending package is an extension of Trump’s 2017 Tax Cuts and Jobs Act, which was set to sunset at the end of the year.
The bill also aims to make significant cuts to healthcare and nutrition programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). However, other controversial provisions initially appearing in the bill were left out, including one ordering the sale of public lands and another pausing state regulations on artificial intelligence.
Bill provisions
According to several sources, some highlights of the bill include making tax cuts from the 2017 Tax Cuts and Jobs Act permanent and introducing new tax breaks, including eliminating taxes on tips and increasing the child tax credit to $2,200, which is $300 less than the initial legislation.
The bill includes a higher cap on state and local tax – from $10,000 to $40,000. However, after much debate, Congress decided after five years, this will go back down to $10,000.
There is also a “no tax on tips” provision in the bill, which would create new deductions for tipped workers, eliminating what they owe in federal income tax and allowing them to deduct a certain amount of tip wages and overtime from their taxes.
Additionally, the final bill would largely eliminate numerous tax incentives from the 2022 Inflation Reduction Act for clean energy, electric vehicles (EV) and energy efficiency programs, ultimately putting an end to tax credits on new and used EVs, the installation of at-home EV charging equipment and insulation or energy efficient heating and cooling systems.
Sources note the bill would also terminate the Greenhouse Gas Reduction Fund, which provides funding to nonprofit organizations who offer financing for projects which reduce pollution and greenhouse gas emissions. However, existing contracts and grants will not be affected.
Another major highlight of the bill are cuts made to Medicaid and SNAP.
For Medicaid, the bill imposes work requirements for able-bodied adults, as well as more frequent eligibility checks.
After some senators expressed their concern over how rural hospitals would be impacted by these restrictions, a rural hospital stabilization fund was added to the provisions, allocating $50 billion for rural hospitals.
In addition, the bill will shift the cost of SNAP – which is currently fully funded by the federal government – to states instead.
In a July 4 CBS News article, Authors Kaia Hubbard and Caitlin Yilek note, “The federal government would continue to fully fund the benefits for states that have an error payment rate below six percent, beginning in 2028. States with error rates above six percent would be on the hook for five to 15 percent of the costs. States are also given some flexibility in calculating their share.”
They add, “The package also aligns with the initial House version on age requirements for able-bodied adults to qualify for SNAP benefits. Currently, in order to qualify, able-bodied adults between 18 and 54 must meet work requirements. Both the Senate and House bills would update the age requirement to 18 and 64, with some exemptions for parents.”
Regarding border security and homeland defense, the One Big Beautiful Bill includes more than $46.5 billion for border wall construction and related expenses, $45 billion to expand detention capacity for immigrants in custody and about $30 billion in funding needed for hiring, training and other resources for U.S. Immigration and Customs Enforcement.
It also includes a minimum $100 fee for those seeking asylum, down from the $1,000 fee outlined in the initial bill.
Agriculture impact
Overall, the bill has gained major support from farmers, ranchers and rural communities.
In fact, this legislative package is set to strengthen the farm safety net by locking in key commodity programs like Agricultural Risk Coverage (ARC), Price Loss Coverage (PLC) and other crop insurance programs through 2031, while lifting reference prices for major crops like wheat, corn and soybeans by approximately 11 to 21 percent and integrating automatic annual adjustments with a built-in escalator capped around 113 to 155 percent of the original threshold.
For the 2025 crop year, producers can now automatically receive higher PLC or ARC payments with no elections needed.
Additionally, the inclusion of the Supplemental Coverage Option, alongside ARC, provides enhanced protection against weather losses and market volatility.
In an effort to safeguard generational land transfers, the bill is also set to pass permanent estate tax exemption at $15 million per individual or $30 million per couple. Preserving the “step-up basis rule” will likely also ease succession transitions and capital gains exposure.
In addition, the bill permanently enacts the 20 percent Section 199A deduction for pass-through farm income, along with an indexed minimum deduction. Expensing thresholds for farm equipment purchases will also be extended.
The bill also extends and strengthens the 45Z Clean Fuel Production Credit, restricting it to feedstocks grown in North America and boosting domestic soy and canola producers.
Mixed reaction
Many groups and individuals with strong voices in the ag industry have expressed support of the One Big Beautiful Bill.
U.S. Cattlemen’s Association (USCA) President Justin Tupper commented on the successful passage of the bill, stating, “This comprehensive piece of legislation, signed by the president on July 4, includes several issues USCA has long advocated for and we will continue to engage in discussions as this moves forward.”
National Cattlemen’s Beef Association Senior Vice President of Government Affairs Ethan Lane also issued a statement, which reads, “America’s cattle farmers and ranchers are pleased by the final passage of the One Big Beautiful Bill. This legislation will protect family farmers and ranchers from the devastation of the Death Tax, it will avoid a massive year-end tax hike which could have put cattle operations out of business, it expands and protects many of the small business tax deductions family producers rely on to save more of the hard-earned money and it funds critical foreign animal disease prevention measures protecting cattle health.”
U.S. Secretary of Agriculture Brooke Rollins agrees with these sentiments, noting some of the most important measures of the bill for agriculture include bolstering the farm safety net, making crop insurance more affordable, protecting producers from the Death Tax, preventing competing countries from flooding the market with biofuel feedstocks, enhancing domestic energy security and providing immediate tax relief.
“President Trump’s One Big Beautiful Bill is a win for farmers, ranchers, rural communities and American taxpayers,” she says. “His leadership on this landmark piece of legislation is yet another example of an America First promise made and a promise kept.”
Closer to home, Gov. Mark Gordon commented on how the bill will specifically benefit Wyoming.
“Today’s passage of the long-awaited reconciliation bill – The One Big Beautiful Bill Act – by the U.S. Congress is good for Wyoming,” he says. “Throughout the process, I worked closely with members of our Congressional delegation to hone provisions of the bill of particular importance to Wyoming citizens and our state’s economy. I applaud their diligence.”
He continues, “Some of the excellent provisions in this bill include the lifting of a ban on coal leasing and a rollback of royalty rates on coal, oil and gas. These are industries critical to Wyoming’s fiscal health. I was also pleased to see the establishment of a $50 billion stabilization fund for rural hospitals, as well as the removal of both a prohibition on state efforts to regulate artificial intelligence and a provision which would increase taxes on Wyoming’s trona industry.”
However, while Trump’s legislation is being celebrated by some as a win for American families, small business and the ag industry, critics warn it favors the wealthy, cuts vital social programs and opens the door to long-term fiscal and environmental consequences.
Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
