The US Senate has passed the landmark “One Big Beautiful Bill” by a tight 51 to 50 vote, clearing a major hurdle and bringing it a step closer to becoming law.

The Bill now goes to the US House of Representatives. Republican lawmakers are pushing to finalise the legislation before their self-imposed July 4 deadline.

The White House urged the House of Representatives to act swiftly, aiming for final passage before July 4 so the President can sign it into law.

Here are five key takeaways from 'One Big Beautiful Bill':

1. The legislation extends sweeping Trump-era tax reforms framed as a "pro-growth" agenda to maintain U.S. global competitiveness. Beyond tax relief, the bill includes major investments in air traffic control modernisation, spectrum access, renewable fuel incentives, veteran-support measures, border security, and welfare reforms.

2. According to projections from the Congressional Budget Office, the bill would increase federal deficits by $3.3 trillion over the next decade and result in millions losing health coverage—an outlook the White House contests. 3. The bill raises the cap on state and local tax (SALT) deductions. At present, taxpayers can deduct up to $10,000 from their federal tax liability, but that limit is set to expire this year. Under the Senate-approved legislation, the cap would temporarily increase to $40,000 for five years, after which it would revert to the original $10,000 limit.

4. Changes have also been introduced to the Supplemental Nutrition Assistance Program (SNAP), which supports over 40 million low-income Americans. The Senate’s version of the bill mandates that states take on a greater share of the programme’s costs, shifting away from its current structure where the federal government covers the full funding.

5. The "no tax on tips" measure in the budget bill delivers on one of Trump's key campaign pledges. The version passed by the Senate, now under review in the House, would let individuals deduct a portion of their tip earnings and overtime pay from their taxable income. However, these benefits would be gradually reduced for higher earners, beginning at $150,000 for single filers and $300,000 for couples filing jointly.