In a landmark decision following days of intense negotiation and a marathon Senate session, Republicans narrowly passed President Donald J. Trump’s sweeping tax and spending reform package, officially titled the One Big Beautiful Bill Act, through the U.S. Senate by a razor-thin margin of 51–50. The pivotal tie-breaking vote came from Vice President JD Vance, highlighting the high-stakes political atmosphere surrounding the legislation.
A Massive $3.3 Trillion Package of Cuts and Priorities
The $3.3 trillion measure is designed to deliver significant tax relief, increase funding for national defense, and institute the most substantial reduction in federal safety net programs in decades. Central to the bill’s purpose is the extension of Trump-era tax cuts and the elimination of what Republican leaders have described as wasteful or “unaccountable” government spending.
With Senate approval secured, the bill now heads back to the House of Representatives, where final deliberations are expected before the measure is delivered to President Trump’s desk. The administration aims to have the bill signed into law by Independence Day, July 4th.
“Wow, music to my ears,” President Trump declared upon hearing the news. “It shows that I care about you—this is prime time.”
Key Fiscal Reforms in the Bill
The One Big Beautiful Bill (OBBB) outlines a broad fiscal vision that targets what Republicans consider bloated government agencies and programs while promoting pro-growth tax policies. Some of the most notable provisions include:
- Reducing the CFPB’s Budget Cap: The Consumer Financial Protection Bureau’s mandatory funding cap would be cut nearly in half, marking the first such reduction since the agency’s creation under Dodd-Frank.
- Rescinding Green Housing Funds: Significant funds previously allocated to the Department of Housing and Urban Development (HUD) under the Inflation Reduction Act (IRA) are rescinded or made discretionary.
- Eliminating the SEC Reserve Fund: An often-criticized pool of unspent funds intended for the Securities and Exchange Commission’s tech modernization efforts is eliminated.
Senate Banking Committee Chairman Tim Scott applauded the measure, stating that it represents “a historic effort to rein in government overreach and restore fiscal accountability.” He emphasized the bill’s role in curbing “wasteful Green New Deal spending” and restoring transparency to agencies like the CFPB and SEC.
Industry Reactions: Housing and Finance Sectors Weigh In
The legislation has garnered mixed reactions from industry stakeholders. Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit expressed strong support for several housing-related elements within the bill, particularly:
- Permanent Opportunity Zones
- Strengthened Low-Income Housing Tax Credit (LIHTC)
- Removal of proposals that would have limited state and local tax deductions for pass-through entities
Broeksmit noted the MBA’s direct role in shaping those final provisions:
“We worked closely with congressional leaders to ensure the preservation of critical tax incentives that support housing production and affordability,” he said.
The CFPB Battle: Sharp Divides on Consumer Protections
One of the bill’s most controversial aspects was its targeted reduction of the CFPB’s operational capacity. Originally slated for full defunding, a decision by Senate Parliamentarian Elizabeth MacDonough ruled that eliminating the agency violated the Byrd Rule, which restricts non-budgetary provisions in reconciliation bills. Instead, Republicans revised the proposal, reducing the CFPB’s funding cap from 12% to 6.5% of the Federal Reserve’s 2009 budget, saving approximately $2 billion.
Consumer protection advocates responded sharply. Chuck Bell of Consumer Reports warned that the cuts would undermine the CFPB’s ability to hold predatory financial actors accountable.
“Shrinking the CFPB’s funding so dramatically will effectively muzzle this critical watchdog,” Bell cautioned.
Senator Elizabeth Warren, a longtime CFPB champion, offered an amendment to restore full funding, calling the Bureau “the little agency that fights for all Americans” and citing the $21 billion it has returned to over 205 million consumers.
“When this financial cop can’t do its job, there’s no one else to pick up the slack,” Warren stated.
Real Estate-Focused Tax Reforms
The bill includes an array of tax measures aimed at supporting homeownership and investment in the housing market, such as:
- Permanent mortgage interest deduction
- Enhanced Section 199A deduction for qualified business income
- Quadrupled SALT deduction cap ($40,000 for five years)
- Permanent lower individual income tax rates
- Protection of 1031 like-kind exchanges
- Immediate expensing for industrial and agricultural structures
Shannon McGahn, EVP and Chief Advocacy Officer for the National Association of Realtors (NAR), called these provisions “the backbone of the real estate economy.” She confirmed NAR’s active role in the legislative negotiations.
“Real estate represents nearly one-fifth of the U.S. economy. We made sure Congress understood that homeownership is vital to the American middle class.”
Broader Economic Provisions
Other major elements include:
- Permanent LIHTC provisions to encourage affordable housing
- Increased Child Tax Credit ($2,200 indexed to inflation)
- Estate and Gift Tax exemption set at $15 million
- No increase to the top individual income tax rate
- Bonus depreciation and R&D expensing
- Expanded and modernized Opportunity Zones
Polling conducted by NAR in May 2025 revealed strong bipartisan support for these provisions, including:
- 92% in favor of tax-free first-time homebuyer accounts
- 91% support preserving mortgage interest deduction
- 86% support lower individual tax rates
- 83% support the 20% small business deduction
- 61% support raising or eliminating SALT caps
Looking Ahead: Urgency in the House
The bill now awaits final passage in the House of Representatives, where leadership is expected to move swiftly.
Buddy Hughes, Chairman of the National Association of Home Builders (NAHB), urged quick action:
“This legislation paves the way for new investments in home construction, equipment, and land development. It’s a big step toward easing the housing affordability crisis.”
With the House expected to vote in the coming days, and President Trump pressing for a July 4th signing, One Big Beautiful Bill appears poised to become one of the most consequential economic reforms in recent decades.
