It also prunes down Medicaid spending and spending for the Supplemental Nutrition Assistance Program (SNAP), better known as food stamps. Additionally, the legislation targets illegal immigration by increasing funding for the border and for deportations.

Here are the winners and losers from the process.

The winners:

SALT

Republicans in the so-called SALT caucus are some of the biggest winners from the months of negotiations that finally resulted in the One Big Beautiful Bill Act.

The group was pushing for an increase of the $10,000 cap on state and local tax deductions that was first implemented by Republicans as part of the 2017 Tax Cuts and Jobs Act. The issue was that most rank-and-file Republicans actually oppose increasing the cap, so the successful effort was taken by just a few members, including lawmakers like Reps. Mike Lawler (R-NY), Nick LaLota (R-NY), Young Kim (R-CA), and others.

Because the House’s margins are so small, the SALT caucus was able to band together and exact major concessions. In the end, they were able to quadruple the cap to $40,000, although that is set to sunset in five years.

Regardless of the temporary nature of the increase, the change is a major win that members of the group — many of whom are in close districts — can tout and run on in the midterm elections.

Trump

Trump is another big winner from this bill. While the majority of the legislation is simply extending and making permanent existing tax policies, the legislation also contains several new tax priorities that Trump campaigned on.

For instance, Trump campaigned on eliminating taxes on tipped wages. The legislation sets a $25,000 limit for deductions for income earned as tips. The deduction also phases out at a 10% rate starting at $150,000 in income for a single filer and $300,000 for a joint filer.

The bill also fulfills his no taxes on overtime pay push and sets a $10,000 limit on deductions for auto loan interest paid, among other campaign priorities.

And even new policies aside, if this legislation wasn’t passed, millions of Americans would see their taxes increase next year, something that would be politically disastrous for the president. So passage of those alone, and avoiding that tax cliff, is also a win for Trump.

Businesses and corporations

Because of changes to the legislation on the Senate side, businesses and corporations also notched a big win.

While the House version of the bill temporarily extended some prized business investment tax breaks, the Senate changed the now-passed legislation to make those major tax breaks permanent.

The bill permanently allows companies to immediately deduct domestic research and development costs. It also permanently allows full expensing for new capital investment, such as factory machinery, and restores interest deductibility to help finance investments.

The business provisions were a key priority for lawmakers because incentives for businesses are thought to be especially helpful in boosting economic growth. In theory, they could help make the bill less costly to the Treasury, because with the increased growth comes increased revenue capture.

The losers:

Deficit hawks

The country’s growing national debt has become a major concern for many Republican lawmakers. They hoped to use the reconciliation bill to make major spending cuts.

While the budget hawks were able to secure some more spending cuts to offset the cost to the treasury of the tax cuts, most budget experts still argue that the legislation, on balance, will increase the country’s deficits.

In its most recent calculation for costs, the Congressional Budget Office said the legislation will add some $3.3 trillion to deficits over the next decade.  But the CBO also scored the bill using current policy baseline and found the legislation would reduce the deficit by $508 billion.

The “current policy baseline” is a novel accounting method that suggests it is cost-free to make permanent the 2017 Trump tax cuts that would otherwise expire next year. The White House also argued that economic growth from the bill would offset the deficit hit.

Still, with outside experts arguing that the bill will make deficits worse and lawmakers from the House Freedom Caucus having wanted bigger spending cuts, there are a lot of deficit hawks that will be leaving somewhat dissatisfied.

“The level of blatant disregard we just witnessed for our nation’s fiscal condition and budget process is a failure of responsible governing,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, after the Senate passed the legislation.

Colleges and universities

The reconciliation legislation also targets some of the country’s biggest colleges and universities, continuing a trend from the Trump administration of scrutinizing them, especially in the fallout of the Hamas attack on Israel and subsequent protests.

Specifically, the legislation targets the endowments of colleges and universities. The One Big Beautiful Bill Act increases the tax on large university endowments and would tax universities with the highest student-adjusted endowments, for instance, Harvard University, at an 8% rate.

That rate is up from 1.4% under current law, which was set by the 2017 GOP tax overhaul. Still, the tax rate was even higher before the Senate took hold of the bill. That top rate would have gone up to 21% in the House version, in line with the corporate tax rate.

Family support advocates

The bill contains wins for conservatives who favor family incentives like a bigger child tax credit, although some in that camp might be disappointed that the legislation doesn’t go further to help families than what was passed.

The Senate actually revised the House version of the bill to provide a smaller boost to the popular child tax credit. The legislation that passed raises the credit from $2,000 to $2,200 per child, while the House version would have boosted it to $2,500.

Still, the legislation makes the child tax credit increase permanent, whereas it would have expired after 2028 in the House bill.

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The expansion of the child tax credit in the House and Senate versions of the bill is less than many pro-family conservatives would have liked. For instance, Sen. Josh Hawley (R-MO) told the Washington Examiner recently that he would like to see a $5,000 credit.

Trump is set to sign the One Big Beautiful Bill Act into law on Friday on the Fourth of July, fulfilling the deadline that congressional leadership set and at times seemed unlikely.