The US President, Donald Trump, signed into law his landmark tax and spending cuts bill, known as the “One Big, Beautiful Bill.”
The signing ceremony coincided with the US Independence Day on July 4 and featured a lavish outdoor celebration at the White House.
Celebratory Signing Ceremony
On July 4, 2025, a day after the US Congress narrowly passed the bill, Trump signed the legislation in a splashy Independence Day ceremony at the White House, with stealth bombers and fighter jets flying over the White House and hundreds of his supporters in attendance, according to Reuters.
“This is a triumph of democracy on the birthday of democracy, and I have to say that the people are happy,” the US President addressed his supporters from the balcony of the South Lawn alongside first lady, Melania Trump.
“I’ve never seen people so happy in our country because of that, because so many different groups of people are being taken care of: the military, civilians of all types, jobs of all types. So you have the biggest tax cut, the biggest spending cut, the largest border security investment in American history,” Trump said.
Controversial Bill
The signing of the bill came after days of tense negotiations as several Republican Party members opposed the bill, fearing it would raise the US debt, and Democrats accused it of rewarding the wealthy and punishing the poor.
However, the bill ended with only two House Republicans voting against it, joining the 212 Democrats opposed to it. Finally, the bill narrowly passed by 218 votes to 214.
The House Democratic Leader, Hakeem Jeffries, delivered a lengthy speech, which lasted for nearly nine hours, slamming the bill as a giveaway to the wealthy that would strip low-income Americans of federally-backed health insurance and food aid benefits.
Moreover, the Democratic National Committee Chair, Ken Martin, blasted the Republicans for backing the law. “Today, Donald Trump sealed the fate of the Republican Party, cementing them as the party for billionaires and special interests – not working families,” he said in a statement.
“This legislation will hang around the necks of the GOP for years to come. This was a full betrayal of the American people. Today, we are putting Republicans on notice: you will lose your majority,” Martin added.
Big Beautiful Bill Key Takeaways
The One Big, Beautiful Bill, which Trump calls “the biggest bill of its type in history,” includes extending the 2017 tax cuts approved during Trump’s first term and major cuts to Medicaid spending.
It also includes new tax breaks on tipped income, overtime and Social Security; increasing defense budget by $150 billion; phasing out Biden-era clean energy tax credits; and boosting Immigration and Customs Enforcement (ICE) with $100 billion.
Although Trump and his Republican allies have argued that the legislation will boost economic growth, the Congressional Budget Office estimated that the overall package will increase budget deficits by $3.4 trillion through 2034.
Musk’s New Party
Trump’s Big Beautiful Bill has reignited the clash between the US President and his former billionaire ally, Elon Musk. The CEO of SpaceX and Tesla slammed the bill, threatening to unseat Republican lawmakers who support it and to form a new political party if the bill passes in the Senate.
Hours before Trump signed the new legislation, Musk doubled down on his threat to form a new party, asking his followers whether he should move forward with creating the America Party.
In a poll on X, Musk said: “Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system! Should we create the America Party?”
Trump-Musk Clash
Over the past month, Musk attacked Trump’s bill in a series of posts on X. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth,” he wrote.
The tech billionaire also refloated the idea of forming a new political party. “If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” he said.
In response, Trump accused Musk of opposing the bill because he would lose electric vehicle (EV) and solar energy subsidies granted under the federal electric vehicle tax credits.
“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” Trump posted on Truth Social.
