WASHINGTON — The White House has urged all Republican members of Congress to unite and swiftly pass President Donald J. Trump’s sweeping legislative proposal, dubbed the “One, Big, Beautiful Bill.”

The bill is described as a once-in-a-lifetime opportunity to overhaul US policy on the economy, immigration, defence, and social issues.

Here are the key highlights of the bill, as outlined on the official White House website, quoted Wednesday (21/5):

• First, the largest tax reform in US history. The bill promises double-digit tax cuts, averaging USD 5,000 in savings per household. Those earning between USD 30,000 and USD 80,000 would pay around 15% less. Taxes on tips and overtime wages would also be abolished, in line with Trump’s campaign pledge.
• Second, mass deportation and border security. One of the most controversial aspects is the “big, beautiful deportation” plan targeting one million illegal deportations per year. The bill also resumes the border wall project, including 701 miles of primary wall, and recruits 18,000 additional immigration officers. The White House describes this as the largest investment in border security in US history.
• Third, elimination of benefits for undocumented immigrants. The bill removes Medicaid access for 1.4 million undocumented migrants and requires able-bodied Americans receiving benefits to return to work.
• Fourth, cuts to green subsidies and public spending. The bill aims to save USD 1.6 trillion by scrapping various green energy subsidies introduced under Biden’s Inflation Reduction Act. Electric vehicle subsidies would be eliminated, on grounds that they “benefit China and radical climate activists.”
• Fifth, pro-family policies and support for farmers. The bill increases the child tax credit, introduces “MAGA Accounts” for newborns, and shields 2 million family farmers from inheritance tax. It also provides over USD 10 billion in tax cuts for farmers.
• Sixth, energy and defence sector reform. It includes funding for the “Golden Dome” domestic protection initiative, increased domestic oil and gas production, and investments in shipbuilding and strategic mineral mining to reduce US dependence on foreign sources.
• Seventh, ban on public funding for child gender transitions. The bill repeals Biden-era mandates covering gender transition procedures for minors through Medicaid, calling them “chemical castration and mutilation of American children.”
• Eighth, modernisation of air traffic control and protection for the gig economy. Trump also proposes modernising the air traffic control system and scrapping the rule requiring IRS reporting of transactions over USD 600 on platforms like PayPal and Venmo.

The bill is positioned as a corrective to what Trump describes as the policy failures of the Biden era and a return to Trump’s economic and social vision. He warned that failure to pass the bill would result in “the biggest tax increase in history” for Americans.

However, critics argue that implementing tax cuts amid soaring US government debt — now at around USD 36 trillion — would inevitably force the government to borrow more.

The Congressional Budget Office (CBO), in its April 2025 report, warned that if tax cuts are extended without adjustments in fiscal policy, government revenues could decline and debt could surge to 220% of GDP by 2025 — 63 percentage points above the current long-term projection.

As market confidence in the US’s ability to service its debt weakens, the Federal Reserve may become the government’s last resort.

This means the central bank could once again resort to quantitative easing — a controversial move — to suppress long-term interest rates and facilitate new government debt financing. (EF/ZH)