The House of Representatives narrowly passed the “One Big Beautiful Bill Act,” a budget reconciliation bill championed by President Donald Trump. This sweeping legislation, now heading to the Senate, has sparked significant controversy due to its provisions impacting artificial intelligence, environmental regulations, consumer protection, and border security. The bill’s passage is far from guaranteed, as some Republican senators have voiced concerns.
One of the most contentious aspects of the bill is a proposed 10-year moratorium on state-level AI regulations. Supporters argue this is necessary to foster innovation and compete with China, citing the numerous AI-related bills passed by states in 2025. However, critics worry about the broad definition of “automated decision systems,” fearing it could inadvertently stifle regulation of various non-AI systems and even potentially impact existing social media regulations. Several Republican senators, including Marsha Blackburn and Josh Hawley, have expressed reservations, citing concerns about federalism and the need for sensible oversight to protect liberties. The provision’s compliance with the Byrd rule, which prohibits extraneous additions to reconciliation bills, also remains a question.
The bill also significantly alters environmental policies. Biden-era tax credits for electric vehicles are slated to expire within two years, and those for wind and solar energy will be phased out by 2032. Further cuts to key climate programs from the 2022 Inflation Reduction Act were added shortly before the House vote. These rollbacks are expected to have a considerable impact on the nation’s transition to green energy.
Consumer protections are also weakened in the proposed budget. The Consumer Financial Protection Bureau (CFPB), already facing budget cuts under the Department of Government Efficiency, would see its funding further capped. This reduction in resources could severely hamper the CFPB’s ability to address consumer complaints and regulate digital payment services.
In contrast to the cuts in other areas, the bill allocates billions of dollars to enhance border security. This includes funding for border wall construction and modernization, as well as investments in technology for drug and contraband detection and advanced surveillance systems. This substantial investment in border technology raises questions about its proportionality relative to cuts in other crucial areas.
Finally, the bill includes provisions limiting access to gender-affirming care. Starting in 2027, health care plans offered through the Affordable Care Act marketplace would be prohibited from covering such care. Medicaid coverage for gender transition procedures would also be barred for both minors and adults, while coverage for detransition would be mandated. These healthcare limitations have drawn significant criticism from various groups.
With the bill now moving to the Senate, the coming weeks will be crucial in determining its ultimate fate. The differing opinions within the Republican party, coupled with the potential legal challenges, suggest a protracted and uncertain legislative battle ahead.
