Fighter jets whooshed by and a stealth bomber streaked through the air during Friday's annual White House Fourth of July picnic. |
The display of might outside was unmistakable, as was the soft power inside the building. |
President Donald J. Trump signed into law his nearly 900-page "Big Beautiful Bill" of tax breaks and spending cuts, affecting millions of Medicaid recipients while growing the Immigration and Customs Enforcement agency by thousands of workers. |
The Senate passed the bill earlier in the week, while the Republican-controlled House voted 218-214 in favor of it on Thursday evening, with all Democrats and two Republicans opposed. |
Now that the bill is in effect, it's a good time to review what's actually inside. |
Times and Associated Press reporters broke down what the passage of the bill means for the country. |
Tax cuts take center stage |
The BBB contains roughly $4.5 trillion in tax cuts, according to the Associated Press, and solidified the ones from Trump's first term. |
On the teeter-totter of benefits, the wealthiest families will enjoy an average of $12,000 in tax savings, while the poorest people will have to pay an additional $1,600 a year, on average, mainly due to reductions in Medicaid and food aid. |
That analysis of the House version of the bill is is according to the nonpartisan Congressional Budget Office. |
While temporarily adding new tax deductions on tips, overtime and auto loans, the bill also adds a $6,000 deduction for older adults making less than $75,000 a year. |
The child tax credit is bumped from $2,000 to $2,200, though millions of lower income families will still be unable to get the full credit. |
Caps for state and local tax deductions, known as SALT, will quadruple to $40,000 for five years, offering some benefits to residents of higher-taxed states like California. |
Businesses will get a break because they will immediately be able to write off 100% of the cost of equipment and research, which some experts say will boost economic growth. |
Deportations, a border wall and missile defense |
Another $350 billion is being allocated for border and national security, which includes spending on the U.S.-Mexico border and 100,000 migrant detention beds. |
ICE will receive funding to offer $10,000 signing bonuses to new employees, with the aim of hiring 10,000 officers and agents. |
Immigrants will fund some of these projects by paying new or increased fees, including when they apply for asylum. |
In total, the Department of Defense will receive roughly $1 billion in new funding for border security. |
Another $25 billion is being set aside for the U.S. to develop its own Israel-type of Iron Dome missile defense system, called the "Golden Dome." |
Clean energy gets pummeled |
Previous tax breaks meant to create incentives for wind and solar energy are being hacked dramatically. |
One incentive that will soon disappear is the electric vehicle tax break of $7,500 for new vehicles and $4,000 for used ones. |
That was supposed to initially expire in 2032. Instead, the credit sunsets on Sept. 30. |
How is this being paid for? |
Republicans are cutting back on Medicaid and food assistance programs for those below the poverty line. |
Many adults receiving Medicaid and food stamps, including those up to age 65, will now have to fulfill an 80-hour-a-month work requirement. |
Medicaid patients will also have a new $35 co-payment to contend with. |
About 71 million Americans use Medicaid, and 40 million benefit from the Supplemental Nutrition Assistance Program, or SNAP, commonly known as food stamps. |
The CBO estimates that 11.8 million Americans will become uninsured by 2034, and 3 million more will not qualify for SNAP due to the changes. |
For more on the bill, read our full report here. |
The week's biggest stories |
|
(Chris Pizzello / Invision / AP) |
Trump administration pushback |
|
Fires and wildfires |
|
Crime, courts and policing |
|
More big stories |
|
|
This week's must-reads |
| Chris Garcia began selling tamales on behalf of his mother, a legal resident who was caught up in an immigration sweep two weeks ago at Villa Parke in Pasadena. | | | |
More great reads |
|
|
For your weekend |
|
(Illustrations by Lindsey Made This; photograph by Greg Swales) |
Going out |
|
Staying in |
|
Keep up with California | Your support helps us deliver the news that matters most. Subscribe to the Los Angeles Times. | | | | |
L.A. Affairs |
Get wrapped up in tantalizing stories about dating, relationships and marriage. |
| My ex-husband got a cat, and so did I for the sake of promoting uniformity between our two homes for our girls. The problem? I didn't want this cat in my life. | | | |
Have a great weekend, from the Essential California team |
Kevinisha Walker, multiplatform editor Andrew J. Campa, reporter Karim Doumar, head of newsletters |
How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com. Check our top stories, topics and the latest articles on latimes.com. |