Trump Signs $3.4 Trillion Budget With 4.5 Trillion Tax Cuts

President Donald Trump has signed into law a $3.4 trillion budget package, marking a significant legislative achievement for his second term. The bill, which Trump described as "big and beautiful," includes a range of measures that extend tax cuts, introduce temporary breaks for tipped workers, and boost funding for immigration enforcement. The legislation was signed at a military family picnic at the White House on the Fourth of July, a deadline that had been set by the president and his aides.

The budget package is a cornerstone of Trump's economic agenda and includes $4.5 trillion in tax cuts, an extension of the 2017 Trump-era tax reductions, and new tax relief for various groups, including tipped workers, seniors, and parents. The bill also expands the state and local tax (SALT) deduction cap from $10,000 to $40,000 over five years, a key win for Republicans in high-tax states. However, the legislation also includes major spending cuts to healthcare and nutrition programs, which has drawn criticism from advocacy groups, fiscal watchdogs, and Democrats.

According to the nonpartisan Congressional Budget Office, approximately 11.8 million Americans could lose Medicaid coverage due to new work requirements, co-payments, and reimbursement caps. Hospitals, particularly rural ones, could face closures due to reduced federal support. The bill's passage reinforces Trump's dominance within the Republican Party, as GOP leaders pushed the measure through both chambers despite razor-thin margins, vocal opposition from Democrats, and skepticism from fiscal hawks and moderates. Trump personally lobbied key lawmakers to secure their support ahead of the July 4 deadline.

Despite the political victory, the bill is broadly unpopular with the public, and Democrats have vowed to use it as a political weapon in the upcoming midterms. Some Senate Republicans also fear electoral backlash from voters reliant on safety-net programs. The administration, however, insists that the package will supercharge the economy, with Trump dismissing concerns over rising debt and arguing that tax reform, deregulation, tariffs, and energy production will drive growth.

The bill also includes hundreds of billions in new military spending and additional funds for immigration enforcement, aligning with Trump's national security agenda. However, it slashes incentives for renewable energy and electric vehicles, which could slow green infrastructure investments. Medicaid alone faces nearly $1 trillion in reductions, while food-aid programs will enforce expanded work requirements and penalties for states with error-prone benefit systems.

As the country celebrates Independence Day, Trump is betting that this bold, controversial budget will reshape America’s economy and his political legacy. The event featured dramatic touches, including a flyover by two B-2 bombers, and was attended by First Lady Melania Trump, several Cabinet officials, and numerous Republican lawmakers. Trump called the bill "the biggest victory yet," touting it as proof of American strength and a cornerstone of his economic agenda.