Donald Trump is preparing to sign a major tax-and-spending package into law on Friday during a Fourth of July celebration at the White House. The legislation introduces deep cuts to federal safety-net programs and ramps up funding for immigration enforcement, marking a clear win for the administration’s conservative agenda.

Trump described the bill as a “birthday present for America” at a rally in Iowa the evening before. The bill passed the Senate by a single vote and later passed the House 219 to 213, with only two Republicans dissenting. The sweeping package delivers on long-standing right-wing goals and has been heralded as a legislative success for Trump, as noted this week by multiple outlets.

Tax Cuts with Broad Implications

Donald Trump at the Trump National Golf Club.
Donald Trump at the Trump National Golf Club.

Once signed, the bill will deepen the tax cuts from Trump’s 2017 reforms. It includes temporary exemptions for tips, overtime income, and car loan interest. However, analysis from the Center on Budget and Policy Priorities shows that the wealthiest Americans stand to benefit the most.

Massive structural changes will hit Medicaid and the Supplemental Nutrition Assistance Program (Snap), targeting assistance that serves millions of low-income and disabled Americans. Estimates suggest that 11.8 million people could lose healthcare access, while 8 million could lose food benefits. Critics warn that the ripple effect could destabilize healthcare systems nationwide.

Senator Raphael Warnock responded sharply to the bill’s passage, writing on X, “This is highway robbery. The bill Republicans just passed steals from you to give to the rich.”

Supporters of the changes argue the intent is to cut back on waste and fraud in federal assistance programs, though critics question the cost to vulnerable communities.

Funding for Immigration Enforcement

In line with Trump’s immigration policy goals, the bill allocates $170 million for immigration enforcement. That funding will help scale up deportations, increase detention capacity, and expand hiring for immigration officers. Civil rights advocates and immigration groups have denounced the move.

Nicole Melaku, head of the National Partnership for New Americans, criticized the funding, saying it “hands the Trump administration a blank check to further ramp up its shameful efforts to terrorize American communities and separate families.”

Meg McCarthy of the National Immigrant Justice Center warned that the increase in enforcement will threaten due process and constitutional protections. A Guardian analysis also noted a dramatic rise in the arrests of undocumented immigrants with no criminal history, attributed to White House pressure on ICE.

Trump had previously paused enforcement at agricultural and hospitality sites after complaints from industry leaders. But on Thursday, he suggested that farmers who vouch for workers might be exempt from future raids, telling Secretary of Homeland Security Kristi Noem, “If a farmer is willing to vouch for these people in some way… we don’t want to do it where we take all of the workers off the farms.”

Rollbacks on Climate and Economic Concerns

Beyond the cuts to social programs and expanded immigration enforcement, the legislation also aims to eliminate green energy incentives enacted under President Joe Biden, a move seen as undercutting climate action. Meanwhile, the Congressional Budget Office projects that the bill will add $3.3 trillion to the national debt by 2034. This projection has created friction even among conservative lawmakers.

One of the few Republican dissenters, Thomas Massie, explained his vote in a statement, citing concern over the potential for sustained inflation and higher interest rates due to rising deficits.

Right-wing billionaire Elon Musk, who played an early role in promoting government spending cuts during Trump’s first term, also criticized the bill. Ahead of the vote, Musk called again for the creation of a new political party, expressing dissatisfaction with both Democrats and Republicans.