After Heated Bipartisan Battle, the "Big Beautiful" Bill Passes — Trillions in Fiscal Shifts to Shake Markets

TradingKey – After intense debate across both chambers of Congress, the "Big Beautiful" bill, championed by former President Donald Trump, was approved by the House on July 3 and is set to be formally signed into law by the president on Friday. The bill aims to cut taxes by around $4 trillion over the next decade, while also slashing at least $1.5 trillion in public spending , marking a major reversal from the Biden-era "Green New Deal."

The bill barely passed the Senate with a 51–50 vote, with Vice President J.D. Vance casting the tie-breaking vote. In the House, it passed by a narrow margin of 218–214 , with only two Republican lawmakers voting against it: Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania. Every Democrat voted in opposition.

While the White House claims the legislation will unleash economic growth, criticism has been widespread. Democrats argue the bill favors the wealthy and undermines social welfare programs, while Tesla CEO Elon Musk has repeatedly voiced opposition, calling the bill counterproductive and warning that it could worsen the U.S. deficit, even leading the country toward financial collapse.

Under the new law, federal incentives for electric vehicle purchases will begin phasing out starting September 30 this year, and tax credits for solar and wind energy projects have also been removed.

Economists caution that the bill may significantly widen the budget deficit, potentially adding up to $4 trillion in new debt over ten years. Some Republicans within the party have also raised concerns about its long-term fiscal sustainability.

As the bill moves toward implementation, investors and policymakers alike are closely watching its potential ripple effects across financial markets, the clean energy sector, and the broader structure of government spending.