The Great Beauty Act overall increases government spending and raises the fiscal deficit!

• Increase in expenditure areas:

The bill significantly increases funding for areas such as national defense, border security, and energy production. These measures aim to strengthen national security and energy independence, such as the construction of a border wall and the expansion of military spending.

• Reduce expenditure areas:

At the same time, the bill cuts social welfare programs such as Medicaid, welfare support, student loan assistance, nutrition programs, and "green energy" subsidies. These cuts are aimed at reducing "government waste" and controlling the budget.

• Net Effect:

According to the analysis, the final version of the bill results in a net increase in government spending of approximately $90 billion, while revenue decreases by about $20 billion, thereby increasing the fiscal deficit by approximately $110 billion, further raising federal debt.

Overall, this tax and expenditure reform is viewed as a combination of "tax cuts + partial increases in spending", which stimulates economic growth in the short term but exacerbates fiscal pressure in the long term.

This bill was officially passed in July 2025 and is the core of Trump's second-term tax reform, expected to add an additional $3-4 trillion to the deficit over the next 10 years.

The reason for this shutdown is that the Democratic and Republican parties failed to reach an agreement on the content of "cutting Medicaid," which made it impossible to pass the temporary funding bill, resulting in the government running out of funds and subsequently shutting down.