Inside The $165 Billion DHS Overhaul: Where The ‘Big Beautiful Bill’ Cash Actually Went One Year Later

The Department of Homeland Security marked the one-year anniversary of the One Big Beautiful Bill Act on Saturday, releasing a detailed breakdown of how a historic $165 billion in federal appropriations is being spent to reshape American border security and law enforcement.

Signed into law by President Donald J. Trump on July 4, 2025, the legislation represents one of the largest single-year funding injections in DHS history. Homeland Security Secretary Markwayne Mullin marked the milestone by highlighting the financial and operational shifts currently underway across multiple federal agencies.

“It’s been one year since President Trump signed the One Big Beautiful Bill. The results have been, and will continue to be, absolutely remarkable for our country,” Secretary Mullin said in an official statement. “This is what good government looks like: Over $1.6 trillion in spending cuts; no tax on tips, social security (see publisher’s note below), or overtime pay; investments in new technology to secure our borders on both land and sea; and historic funding for ICE, CBP, and the Coast Guard to make America safe again.”

A major portion of the $165 billion is dedicated to physical infrastructure and deportations. The bill provided $46.5 billion to finish constructing the southern border wall, establishing a target completion date for the primary wall in late 2027.

Another $14.4 billion was set aside specifically for removal transportation, alongside $12 billion designated to reimburse states that legally or physically opposed the previous administration’s border policies.

Personnel and surveillance technology also saw massive budget increases. The law put $4.1 billion toward hiring new Customs and Border Protection (CBP) personnel, backed by $855 million to expand the agency’s vehicle fleet. To monitor transit corridors, the government allocated $3.2 billion for new tech and $2.7 billion for high-tech border surveillance.

Immigration and Customs Enforcement (ICE) experienced an unprecedented workforce expansion under the bill. The funding provided for 12,000 new agents, effectively more than doubling ICE’s manpower from 10,000 to 22,000 active officers and agents.

To accommodate increased enforcement, the legislation secured 80,000 new ICE beds, boosting the agency’s detention capacity to maintain an average daily population of 100,000 people.

It also fully funded the 287(g) program, which legally allows state and local police forces to act as extension federal immigration officers. As a retention incentive, both ICE and Border Patrol agents are receiving a guaranteed $10,000 annual bonus for the next four years.

Beyond land borders, the law directed billions toward maritime defense, handing the U.S. Coast Guard its most significant financial upgrade since World War II. The maritime funding includes $14.1 billion for new Coast Guard cutters, $3.7 billion for aircraft, and $6 billion to upgrade aging naval infrastructure.

   

Publisher’s Note

Social Security income is still subject to federal income tax, but an enhanced senior deduction all but eliminates it for the vast majority of beneficiaries. You can verify your exact tax standing using the IRS Interactive Tax Assistant. [1, 2, 3]

Enhanced Senior Deduction

Thanks to the One Big Beautiful Bill, taxpayers aged 65 and older can claim an additional deduction of up to $6,000 per person ($12,000 for married couples). This is designed to offset taxable Social Security benefits, resulting in nearly 90% of seniors paying no federal tax on their benefits. [1, 2, 3, 4]

  • Phase-out thresholds: The deduction phases out if your modified adjusted gross income (AGI) exceeds $75,000 for single filers or $150,000 for joint filers. [1, 2]

Federal Income Tax Rules

Even with the deduction, the IRS still uses the “combined income formula” to determine the taxable portion of your benefits. Combined income includes AGI + non-taxable interest + 50% of your Social Security benefits. [1, 2]

  • Single filers:
    • Under $25,000: No tax.
    • $25,000 – $34,000: Up to 50% of benefits are taxed.
    • Over $34,000: Up to 85% of benefits are taxed. [1]
  • Married filing jointly:
    • Under $32,000: No tax.
    • $32,000 – $44,000: Up to 50% of benefits are taxed.
    • Over $44,000: Up to 85% of benefits are taxed. [1]

State Taxes

Most states do not tax Social Security income, but nine states do. Depending on your income and specific state rules, you may still owe state-level taxes if you live in: [1, 2]

  • Colorado
  • Connecticut
  • Minnesota
  • Montana
  • New Mexico
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia [1]

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