President Trump Signs OBBB Into Law
On July 3rd, Congress delivered on the promises President Trump and House Republicans made to the American people by passing the One Big Beautiful Bill (OBBB).
Signed into law on the 4th of July, this transformative legislation will help Americans keep more of their hard-earned money instead of sending it to Washington, increase economic opportunity, strengthen our economy, unleash American energy, and secure our borders. The OBBB passed the House by a vote of 218-214 with my support. |
Overall, the OBBB will positively impact individuals, families, and small business job creators across Southwest Michigan. In fact, the OBBB gives the biggest tax relief to low-income and working families. Meanwhile, the top 1% will actually pay more in taxes.
Provisions such as No Tax on Tips will help barbers, bartenders, baristas, stylists, servers, nail techs, taxi, uber, and lyft drivers, as well as food delivery drivers keep more of their hard-earned money.
The No Tax on Overtime provision will deliver bigger paychecks for a wide-variety of careers including police, firefighters, nurses, manufacturers, skilled trade workers, and utility workers.
Middle and Low-Income Seniors will see their tax burden significantly reduced by $6,000 for individuals and $12,000 for couples.
Families will see their Child Tax Credit increased by 10% going from $2,000 per child to $2,200 per child while indexing the tax credit to inflation.
Helps families with the rising cost of child care by expanding the Child & Dependent Care Tax Credit (CDCTC) and Flexible Spending Arrangements (FSAs) as well as strengthening the Paid Family and Medical Leave Credit and the Employer-Provided Childcare Credit.
By enhancing the Adoption Tax Credit it will be easier for families to welcome children into their new forever home.
Permanently extending the doubled standard deduction protects $15,000 in value for Southwest Michigan taxpayers.
In line with my Made In America Motors Act, OBBB enacts No Tax on Auto Loan Interest to incentivize buying made-in-America cars and support Michigan auto jobs.
Below is a chart from the House Ways & Means Committee detailing how the OBBB will provide tax relief families across America. |
OBBB is Jet Fuel for Our Economy
The OBBB is estimated to unleash $1.5 trillion in small business economic growth. It does this by making the 20% Small Business Deduction permanent and doubles the Section 179 Small Business Immediate Expense Deduction.
Permanent immediate R&D investment amortization, 100% immediate expensing, interest expense deduction, and new 100% expensing for new or expanded factories will supercharge manufacturing wages by $126 billion and spur $284 billion in additional manufacturing GDP.
Furthermore, the bill reduces paperwork for 1099 small businesses, reinstates Opportunity Zones to revitalize investment in communities, protects or creates more than 7 million jobs, and is estimated to boost real wages by up to $7,200 for every American worker. The opportunity zone provision opens the door to help spur investment in portions of Allegan, Berrien, Calhoun, Kalamazoo, Ottawa, and Van Buren Counties.
Below is a graphic from the House Ways & Means Committee detailing the number of jobs saved or created by the OBBB and what industry each job falls into. |
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Border Security Update: Restoring Operational Control of Our Southern Border
The OBBB makes the biggest-ever investment into enhancing and maintaining border security. After President Biden allowed millions of illegal immigrants from across the globe into our nation, these investments are critical to help hire new border patrol agents, enhance technology being used to secure the border, build the wall and additional physical barriers, and fix the massive problem created by President Biden and Kamala Harris' open border policies.
The most recent data from the Department of Homeland Security shows that encounters at our southern border have fallen dramatically, security at our northern border continues to improve, known gotaways have fallen by more than 90% compared to last year, and last month zero illegal immigrants were released into the United States. This positive progress must become the standard not the exception when it comes to securing our borders and the OBBB makes that a reality.
Investing in the Future of America
The OBBB unleashes American energy dominance to lower your family’s energy costs, support our allies, and grow our economy. The OBBB also strives to make life more affordable and put downward pressure on inflation by including the largest mandatory spending reduction to ever be signed into law. This measure also provides vital certainty for millions of family farms by sparing them the death tax. This will help the next generation of farmers continue to feed Southwest Michigan and the world.
Additionally, the OBBB critically upgrades our nation’s Air Traffic Control and Coast Guard, ends wasteful Green New Deal policies, allows investment into greater school choice, and modernizes our military with a $150B investment into deterrence, the Golden Dome, and servicemembers and their families. |
Protecting Medicaid by Eliminating Waste, Fraud, and Abuse
There have been many claims regarding the OBBB and it's impact on Medicaid. Here is what the legislation does.
The OBBB seeks to eliminate waste, fraud, and abuse from both SNAP (food stamps) and Medicaid by implementing work requirements for able-bodied individuals without minor dependents.
These commonsense reforms were once enacted in Michigan by then Governor John Engler and resulted in more than 300,000 Michiganders leaving aid rolls and joining private sector payrolls.
The requirement in the OBBB says able-bodied individuals -- without children 13 years or younger -- must work, receive training, further their education, or volunteer for a total of 80 hours per month (20 hours a week) to maintain their benefits.
These requirements DO NOT APPLY to pregnant mothers, families with children 13 and younger, the elderly, caregivers, and those medically unable to work.
In fact, OBBB protects Medicaid for those who truly need it by taking meaningful steps to root out the causes of the estimated $500 billion to $1 trillion dollars in Medicaid fraud that has taken place over the past decade. It does this by including provisions to address the 1.6 million individuals who are enrolled in Medicaid programs across multiple states as well as provisions to prohibit illegal immigrants from receiving government benefits.
Importantly, the OBBB also includes provisions to expand access to home and community-based services covered by Medicaid. |
On the 4th of July, I was honored to join President Trump for the OBBB signing ceremony at the White House.
Without taking this action, the average taxpayer here in Michigan’s 4th District would have faced a massive 25% tax increase, and that’s not all.
Over 70,000 families would have had their per child tax credit cut in half, tax rates for nearly 42,000 small businesses would have soared to 43.4%, and 95% of the more than 452,000 taxpayers in Southwest Michigan would have seen their standard deduction slashed in half. Thankfully with passage of the One Big Beautiful Bill, Republicans stopped middle class families and small businesses from being hit with the largest tax increase in history and these negative outcomes have been avoided.
Codifying Executive Orders into Law
Lastly, the OBBB codifies 28 Executive Orders signed by President Trump into law. These range from securing our border and strengthening our national security to unleashing American Energy Production. A complete list is available in the graphic below. |
Thank you for reading this edition of the Huddle! I hope you find this information pertaining to the OBBB both useful and insightful. If you or someone you know needs assistance with a federal agency, please don't hesitate to contact my office in Holland, my office in Portage, or on the web at Huizenga.House.Gov. |
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