Trump Signs 'One Big Beautiful Bill' Impacting Economy, Tax Laws, and Projects

2025-07-10 economy

Washington D.C., Wednesday, 9 July 2025.
On July 4, 2025, President Trump signed the ‘One Big Beautiful Bill’, a transformative legislation extending tax cuts, reconstructing Medicaid, and imposing new tariffs, significantly affecting the U.S. economy and future construction projects.

Overview of the One Big Beautiful Bill Act

The One Big Beautiful Bill, signed into law by President Trump on July 4, 2025, enacts sweeping changes across several sectors of the economy. It extends the provisions of the 2017 Tax Cuts and Jobs Act and implements new regulations intended to stimulate economic growth while reforming tax laws. The legislation modifies individual tax rates, permanently increasing the standard deduction and altering thresholds for the alternative minimum tax[1][2]. The act is also expected to enhance long-term GDP growth by approximately 0.7%, according to advocates[3].

Impact on Tax Policy and Medicaid

The act introduces substantial changes to the U.S. tax policy. It includes a permanent 20% deduction for business income taxed at individual rates, which the House version elevates to 23%, potentially costing up to $700 billion in the next decade[4]. Furthermore, the act mandates significant cuts to Medicaid funding, raising concerns among healthcare experts about the possible increase in preventable deaths due to reduced healthcare access for low-income Americans[5].

Shifts in Energy and Construction Markets

Stimulating the construction sector, the act allows projects beginning by December 31, 2025, to circumvent new restrictions on Chinese equipment, potentially accelerating project launches[6]. However, it phases out clean energy tax credits, challenging industries reliant on renewable energy incentives by eliminating certain credits by 2026[7]. Moreover, by modifying tax structures for renewable projects, the act significantly reshapes investment strategies for construction firms involved in green technologies[8].

While proponents suggest the act will bolster economic resilience, critics argue it exacerbates fiscal disparities. With its emphasis on fossil fuel interests over clean energy incentives, the legislation phases out green tax credits and increases the state and local tax (SALT) deduction cap for lower-earning taxpayers, aiming to balance economic disparities[9][10]. This comprehensive fiscal plan, while positioned as a growth catalyst, is expected to heighten budget deficits, with a projected increase by trillions over the next decade[11].

Sources

U.S. economy tax legislation