At a Glance
- Permanent Trump tax cuts signed into law on July 4, 2025
- $150B added to the Pentagon and $170B for immigration enforcement
- $1T cut in Medicaid and reduction in clean-energy funding
Why it matters: The new law reshapes federal spending, tax policy, and regulatory priorities, affecting millions of Americans.
The first year of President Trump’s second term saw a flurry of legislative action from the Republican-led Congress, culminating in a sweeping tax-cut bill, massive defense and immigration spending, and record-breaking regulatory rollbacks. These moves set the tone for the administration’s agenda and sparked intense partisan debate.
1. Permanent Trump Tax Cuts
The GOP pushed through a bill that made the 2017 tax cuts permanent, signing it on July 4. Trump praised the measure as a “big, beautiful bill” that would keep tax relief for all income levels. The Congressional Budget Office estimates the extension will shave $4.5 trillion from the federal budget over the next decade, though critics say the bulk goes to high earners.
Trump stated:
> “America’s winning, winning, winning like never before,”
> “We have officially made the Trump tax cuts permanent.”
Rep. Mike Flood was booed over cuts to government services and heckled with calls to “tax the rich” during a town hall in Lincoln, Nebraska, on Monday.
- Tax deduction for tipped workers
- Tax break for tipped workers
- Deduction for seniors
- Trump Accounts for newborns
2. Massive Defense and Immigration Spending
The law also injected $150B into the Pentagon, pushing the defense budget past $1 trillion when combined with the $900B from the NDAA. It authorized over $170B for immigration enforcement, allowing ICE to hire agents, conduct raids, and carry out mass deportations. Critics point to the $1T cuts in Medicaid and the elimination of clean-energy funding as a major blow to social programs.
- $150B Pentagon infusion
- $170B for ICE enforcement
- $1T cut in Medicaid
- Reduction in clean-energy funding
3. Record-Breaking Regulatory Rollbacks
Using the Congressional Review Act, Republicans passed 22 CRA resolutions in 2025, more than the 20 rules repealed under the act before that year. The fast-track repeal covered a wide range of Biden-era rules from consumer protection to cybersecurity. The move bypasses the Senate filibuster, leaving Democrats with limited ability to block the changes.
- 22 regulations repealed
- Fast-track process under CRA
- Exempt from 60-vote filibuster
4. Senate Power Plays
In September, the GOP invoked the “nuclear option” to allow executive-branch nominations to be confirmed en bloc, a move that let them confirm 48 nominees that month and 97 before the year’s adjournment. They also used a 51-vote majority to set a budget baseline that gave a $0 price tag to $3.4T in party-line tax cuts, while keeping the filibuster for most other bills.
- Nuclear option for en-bloc confirmations
- 48 nominees confirmed in September
- 97 nominees confirmed before adjournment
- 51-vote baseline for tax cuts
- Filibuster retained for other legislation
Key Takeaways
- Trump tax cuts are now permanent, projected to save $4.5 trillion over ten years.
- Defense and immigration budgets swell with $150B and $170B respectively.
- Republicans rolled back 22 regulations, bypassing the filibuster.
- Senate moves limited minority power and accelerated nominations.
These legislative milestones illustrate how the 2025 congressional agenda reshaped federal priorities, leaving a lasting impact on tax policy, defense spending, regulatory oversight, and the balance of power in Washington.
