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In July 2025, the US Congress enacted the sweeping One Big Beautiful Bill (OBBB): a landmark legislative overhaul combining permanent extensions of Trump-era tax cuts for individuals and businesses with major spending cuts to welfare programmes and a hefty increase in defense and border security outlays.
The bill narrowly cleared its final hurdle in the House of Representatives, positioning it to become law following his signature on July 4.
According to the Congressional Budget Office, the legislation is projected to add approximately $3.3–$3.4 trillion to federal deficits over the next decade and leave 11–12 million Americans without Medicaid coverage, a claim strongly disputed by the White House.
“President Trump’s One Big, Beautiful Bill delivers on the commonsense agenda that nearly 80 million Americans voted for – the largest middle-class tax cut in history, permanent border security, massive military funding, and restoring fiscal sanity. The pro-growth policies within this historic legislation are going to fuel an economic boom like we’ve never seen before. President Trump looks forward to signing the One Big, Beautiful Bill into law to officially usher in the Golden Age of America,” the White House press secretary Karoline Leavitt stated.
VICTORY: The One Big Beautiful Bill Passes U.S. Congress, Heads to President Trump’s Desk pic.twitter.com/d1nbOlL21G
— The White House (@WhiteHouse) July 3, 2025
From a B2B perspective, this bill sends strong signals: a brighter corporate tax landscape and investment clarity, contrasted with harsh reductions in healthcare and social safety nets. It deliberately reshapes incentives in sectors like renewable energy, defense, manufacturing, and infrastructure, offering strategic opportunities for businesses and investors.
With permanent 2017 tax cuts, expanded bonuses, and full 100 per cent expensing, the bill aims to stimulate corporate investment. Yet it simultaneously reverses many climate-related credits, potentially chilling solar and wind projects . Defense and security sectors, by contrast, are set to benefit from a $150 billion boost each in defense and border security funding .
Lost in the US-centric coverage, however, are ripple effects in the GCC region, from fiscal and investment flows to energy markets and defense partnerships. Gulf sovereign wealth funds with heavy US bond and equity exposure may see altered yields and investment valuations. A return to robust US fossil fuel production and weaker renewables support could benefit GCC oil exporters, even as geopolitical and military collaboration dynamics evolve.
Sector-wise breakdown
Tax and corporate sector
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Permanent tax cuts: Lowers corporate and individual tax rates, increases SALT cap to $40K temporarily, and adds incentives for tips and overtime.
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Business certainty: Enhanced planning through long-term tax predictability, including 100 per cent Section 179 expensing.
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Trade & remittance levy: Introduces a 1 per cent tax on remittances—raising potential issues for global fund flows.
Healthcare and welfare
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Drastic Medicaid/SNAP cuts: Deep reductions could strip about 10–11 million low-income Americans of benefits.
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Eligibility changes: Programmes now include stricter work mandates and state cost-sharing, potentially straining hospital systems.
Defense and border security
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Defense boost: More than $150 billion for military, including “Golden Dome” missile defense, drones, and nuclear upgrades.
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Immigration enforcement: More than $150 billion for border control, ICE expansion, detention capacity for up to 1 million deportees annually.
Energy and environment
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Clean energy rollback: Repeals IRA tax credits, halts renewables momentum, and favors fossil fuels, nuclear, and gas sectors.
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Energy dominance push: Positions US around nuclear and gas reliability; delays investment in solar and wind.
Infrastructure and tech
Agriculture and rural
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Support for rural hospitals: $50 billion allocated to support struggling healthcare systems in non-urban areas.
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Agricultural enhancements: Elevated crop insurance, price supports, and disaster relief totalling approximately $60 billion.
GCC impact snapshot
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Sovereign wealth and portfolio returns: The tax cuts and increased US debt may drive higher bond yields, squeezing GCC external debt issuances. A new remittance tax could also slightly dent returns for GCC-based investors in the US.
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Energy market ripples: Rollbacks in clean energy tilt US fuel demands back to oil and gas, supporting GCC hydrocarbon export prices in the short to mid-term.
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Defense & security ties: Expanded US defense budgets open avenues for GCC collaboration on advanced military and border technologies.
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Investment climate: Tax clarity may attract more GCC foreign direct investment into US infrastructure and technology sectors, though uncertainty in welfare and fiscal policy might temper risk appetite.
Trump’s “One Big Beautiful Bill” epitomises a high-stakes gamble: it locks in permanent tax relief and certainty for corporations and the wealthy, while significantly slashing social safety nets, primarily Medicaid, potentially leaving nearly 12 million Americans uninsured. Although fossil fuel industries benefit from revived incentives, the rollback of clean‑energy credits casts a shadow over green energy’s momentum, even as targeted investments in technology, defense, and research & development open long‑term growth pathways, assuming fiscal discipline and stable global trade persist.
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