President Donald Trump has officially signed into law a sweeping budget and tax reform legislation popularly dubbed the “Big Beautiful Bill”—a cornerstone of his second-term agenda and the largest Republican-led economic overhaul since the 2017 Tax Cuts and Jobs Act.

The bill, passed narrowly by both chambers of Congress, promises widespread tax relief while tightening access to federal assistance programs.

Signed on Independence Day, the nearly $4.5 trillion legislative package touches nearly every aspect of the U.S. economy—from tax code adjustments to healthcare, food assistance, clean energy, and immigration-related funding.

How the Bill Was Passed: A High-Stakes Political Process

After months of negotiation and political standoff, the bill made it through the U.S. Senate on July 1 in a razor-thin 51–50 vote, with Vice President J.D. Vance casting the deciding vote.

The House of Representatives approved the final version on July 3 by a slim 218–214 margin.

The legislative success was achieved through budget reconciliation—a process that bypasses the 60-vote filibuster threshold in the Senate—allowing Republicans to advance the bill without bipartisan support.

Key Features of the “Big Beautiful Bill”

Permanent Extension of Trump’s 2017 Tax Cuts

A major highlight of the bill is the permanent extension of the individual and corporate tax cuts introduced during Trump’s first term.

The law maintains lowered tax rates across income brackets and boosts the standard deduction by $1,000 for single filers and $2,000 for married couples, effective until 2028.

Critics argue the extension disproportionately benefits high earners, with estimates showing the top 1% will receive over $60,000 annually in tax relief, while average middle-class households will see savings between $380 and $1,800.

No Tax on Tips, Overtime, and More

Fulfilling a high-profile campaign promise, the bill exempts tips and overtime earnings from federal income tax—though the benefit phases out for individuals earning over $150,000 and couples earning over $300,000. This provision will remain in effect until 2028.

The legislation also raises the child tax credit from $2,000 to $2,200 and boosts deductions for senior citizens.

Retirees aged 65 and older earning under $75,000 can now claim up to $6,000 in additional tax deductions.

State and Local Tax (SALT) Deduction Increase

Addressing long-standing grievances from residents of high-tax states, the bill raises the cap on SALT deductions from $10,000 to $40,000 for a five-year period.

After 2030, the cap reverts to its previous level. This provision was a critical negotiation point, particularly among House Republicans from urban districts.

Steep Cuts and New Rules for Medicaid

In a controversial move, the bill introduces significant structural changes to Medicaid. Among the most debated is a work requirement for childless adults, mandating at least 80 hours of work or volunteering per month to retain benefits.

Additionally, re-enrollment must now occur every six months, with added income and residency checks.

The provider tax rate—used by states to help fund Medicaid—is being reduced from 6% to 3.5% by 2032.

In response to backlash from rural legislators, the Senate included a $50 billion fund to support rural hospitals.

The Congressional Budget Office (CBO) warns that nearly 12 million Americans could lose coverage by 2034 due to these changes.

Changes to Food Assistance (SNAP)

The Supplemental Nutrition Assistance Program (SNAP), which supports over 40 million low-income Americans, will see new restrictions. States with high error rates in benefit distribution will be required to shoulder 5% to 15% of program costs starting in 2028.

New work requirements are also imposed on able-bodied adults without dependents who rely on SNAP, mirroring similar Medicaid reforms.

Partial Relief on Social Security Taxes

While Trump initially promised to fully eliminate taxes on Social Security income, the bill stops short of that. However, it does offer temporary deductions of up to $4,000 for seniors aged 65+ between 2025 and 2028, with the Senate version extending this to $6,000 for low-income retirees.

Debt Ceiling Raised by $5 Trillion

The bill raises the federal debt ceiling by a staggering $5 trillion—higher than the $4 trillion approved by the House earlier this year.

This move ensures the government can meet existing financial obligations, though it has drawn criticism for significantly widening the national deficit, which the CBO projects to increase by more than $3.3 trillion over the next decade.

Clean Energy Tax Incentives Rolled Back

Another key section of the bill phases out federal clean energy tax credits introduced under the Biden administration. While the House had pushed for an immediate end, the Senate allowed a more gradual reduction.

Companies beginning construction of solar or wind facilities in 2025 can still qualify for full credits. That drops to 60% in 2026, 20% in 2027, and ends completely in 2028. Companies with links to “foreign entities of concern,” such as China, are barred from receiving these incentives.

Massive Boost to Immigration Enforcement

The law allocates over $100 billion to border security and immigration enforcement. This includes $45 billion for detention centers, $46 billion for border wall upgrades and construction, and $14 billion for deportation efforts.

An additional $100 fee will now apply to asylum applications.

The bill also funds 10,000 new ICE agents, marking a significant expansion of immigration enforcement capacity.

The signing of the “Big Beautiful Bill” marks a pivotal moment in Trump’s second term, consolidating his economic and social agenda into a single legislative milestone.

While hailed by Republicans as a triumph of conservative governance, Democrats and many policy analysts have criticized the bill’s impact on social safety nets and its implications for fiscal responsibility.

As provisions begin to take effect in 2025, the real-world consequences of this legislation will begin to unfold—reshaping how millions of Americans experience healthcare, taxes, welfare, and national policy in the years to come.

The Ethiopian government announced on Friday that it has signed a $1 billion financing agreement with the World Bank to support its ongoing economic reform programme and stimulate national growth.

According to the Ministry of Finance, the funds will be directed toward stabilizing the financial sector, enhancing trade competitiveness, and strengthening domestic resource mobilization. The announcement was made through an official statement shared on the ministry’s Facebook page.

In a separate statement, the World Bank confirmed that the financing package includes a $650 million grant and a $350 million concessional loan.

Both parties have held extensive discussions aimed at deepening cooperation across key sectors of the Ethiopian economy, including agriculture and energy.

The World Bank also revealed that, subject to board approval and availability of resources, its concessional lending arm the International Development Association (IDA) plans to provide Ethiopia with approximately $5 billion in new funding over the next three fiscal years.

This development comes just days after the International Monetary Fund (IMF) approved the latest review of Ethiopia’s $3.4 billion loan programme, unlocking an additional $262.3 million for the country.

The IMF-supported reforms include the floating of the Ethiopian birr in 2024 and efforts to liberalize the economy, allowing greater participation from the private sector.

The IMF has emphasized the importance of further policy actions, including improving the foreign exchange market, increasing domestic revenue generation, restoring external debt sustainability, and enhancing fiscal transparency.

These financial commitments from both the World Bank and IMF reflect growing international confidence in Ethiopia’s reform agenda, aimed at creating a more resilient and inclusive economy.

A violent explosion at a fuel station in Rome has left at least 29 individuals injured, following a series of blasts that caused major destruction in the city’s Prenestino district.

According to early reports, first responders were already present on Friday morning when a fuel tanker reportedly struck a pipeline during a maneuver. This caused gas to escape, leading to an initial minor explosion around 08:00 local time (07:00 BST).

Shortly after, a second, far more powerful detonation erupted, igniting a fire and sending flames and debris through the area. At least nine police officers were among those hurt, as confirmed by the city’s mayor, Roberto Gualtieri.

Videos taken during the incident captured the moment a towering blaze erupted, with thick plumes of smoke billowing into the sky. The force of the explosion was so intense it was heard across large parts of the city and caused buildings and windows to shake.

Upon arriving at the affected location, Gualtieri described the destruction as “terrible” and confirmed that the explosion resulted in “enormous damage” — including multiple injuries from burns and one victim in critical condition.

One of those hurt had to be pulled from a vehicle engulfed in flames by rescue teams who arrived on-site.

Visual evidence from the aftermath revealed scorched buildings and completely burned-out vehicles littering the scene.

Emergency crews continue to manage the situation, stabilizing the area and preventing further risk.

The mayor explained that soon after the first explosion, surrounding structures including a local sports complex were evacuated promptly by emergency personnel. He noted this swift action prevented what he called a “much more serious tragedy”.

One person who witnessed the event, Massimo Bartoletti, shared his account: “I saw the first explosion with the classic fireball. Shortly after came the second one which was hellish.”

He added, “A fiery mushroom formed in the sky. It made the whole area shake. It looked like hell, everything was flying in the sky.”

Balzani Fabio, who manages the now-destroyed sports facility nearby, said the first signs of the fire appeared just before 07:30 local time (06:30 BST).
“If it had happened at 08:30 or later it would have been a massacre, a catastrophe,” he stated.

He noted that around 60 children were scheduled to arrive for a summer camp that morning, with over a hundred others expected to use the swimming pool facility.

Italy’s Prime Minister Giorgia Meloni is reportedly receiving constant updates on the situation.

In a message posted on X, she stated: “I express my closeness to all those who are injured including law enforcement officers, firefighters and health workers and I extend my heartfelt thanks to those involved in the rescue and safety operations”.