President Donald Trump’s sweeping legislative proposal, dubbed “One Big, Beautiful Bill” by Republicans, is advancing through the House and drawing sharp political and market reactions. The bill aims to permanently extend 2017’s Tax Cuts and Jobs Act and eliminate federal taxes on tips and overtime. It also aims to boost defense spending, which could benefit contractors like RTX, Lockheed Martin, Palantir, and Booz Allen. The proposal includes deep Medicaid cuts and new taxes on private university endowments, potentially pressuring managed care stocks like UnitedHealth, Centene, and Elevance. It also proposes changes to SNAP that shift costs to states and expand work requirements. The nonpartisan Committee for a Responsible Federal Budget estimates the legislation would add $3.3 trillion to the national debt over the next decade.
