H.R. 1 — the “One Big Beautiful Bill Act” — is sweeping in scope. Tax cuts, border militarization, safety net rollbacks, clean-energy repeal, and record defense spending all packed into one reconciliation bill. Passed by a razor-thin margin, it now faces a Senate showdown.

What Is the One Big Beautiful Bill Act?

On May 22, 2025, the House passed H.R. 1—the One Big Beautiful Bill Act—by a 215–214 vote under budget reconciliation rules. This bill reduces taxes, adjusts federal spending, and addresses programs across the government, and now moves to the Senate for final consideration.
source: Congress.gov

Related: our piece on Capitalism as Emergent Math explores how incentives baked into laws like H.R. 1 shape outcomes far beyond the text on the page.

Major Tax Cuts & Economic Changes

H.R. 1 locks in the individual and corporate rate cuts from the 2017 Tax Cuts and Jobs Act, raises the SALT deduction cap from $10,000 to $40,000, and expands Health Savings Accounts. According to CBO estimates, these provisions add massive revenue losses—potentially increasing the deficit by trillions over the next decade—despite promises of boosting growth.

Border & Immigration Funding

The bill allocates roughly $70 billion to Customs and Border Protection and ICE for new barriers, staffing, and surveillance technology—described by the National Border Patrol Council as “once-in-a-generation” support. Critics warn it further militarizes the border without addressing root migration causes.

Social-Safety-Net & Program Rollbacks

Through stricter work requirements and more frequent eligibility checks, H.R. 1 cuts back SNAP and Medicaid, potentially stripping benefits from millions according to CBO projections. It also repeals clean-energy tax credits from the Inflation Reduction Act, undermining renewable investments.

For more on how social and economic shocks open space for political consequences, see When Markets Fail, Strongmen Rise.

Defense & Other Major Allocations

Beyond domestic programs, the bill injects $150 billion into defense—much of it for uncrewed drones, including kamikaze drones, drone boats, and underwater systems.

Fiscal Impact & Political Outlook

Despite White House claims of deficit reduction through accounting gimmicks, nonpartisan analysts warn H.R. 1 could add up to $5 trillion to the national debt over ten years. With only a simple-majority vote needed in the Senate, key senators like Joe Manchin and Rand Paul are demanding deeper offsets before signing off, making a July 4 deadline ambitious at best.

Related: our coverage of The Assassination of Charlie Kirk shows how fiscal and cultural conflicts are colliding in today’s political climate.