Lauren Bresette from the Security Industry Association lays out how H.R. 1 addresses tax policy and security sector needs.
Signed into law by President Trump on July 4, the One Big Beautiful Bill Act (OBBBA) raises the nation’s debt ceiling by $5 trillion. It extends nearly all individual, corporate and small-business tax rates originally introduced under the 2017 Tax Cuts and Jobs Act indefinitely. The package includes billions of dollars in new funding for the administration’s border protection vision and a large portfolio of homeland security projects.
The SIA’s government relations staff secured the inclusion of several industry-backed tax measures, even as the final draft expanded spending on defense, infrastructure and emergency preparedness. The association worked alongside other trade organizations to press for permanent progrowth policies and targeted support that align with technology suppliers, integrators and security service providers.
OBBBA channels more than $130 billion into homeland security and border initiatives over the next several years. That total covers construction of physical barriers, deployment of high-tech surveillance systems, staffing of U.S. Customs and Border Protection (CBP) and expansion of detention capacity for immigration enforcement. Grants from the Federal Emergency Management Agency (FEMA) and resources for protective services around the president draw from this funding pool.
Key homeland security allocations include:
• $46.5 billion devoted to border infrastructure and wall-system construction – this funds barrier segments, access roadworks, surveillance equipment and ground preparation at strategic locations
• $6 billion earmarked for next-generation inspection technology, incorporating artificial intelligence tools, biometric scanners and counters to drug smuggling networks
• $10 billion assigned to the Department of Homeland Security for a newly formed State Border Security Reinforcement Fund
• $10 billion covering DHS mission support expenses and cost-reimbursement programs tied to border security operations
• $12 billion set aside to hire, train and retain CBP officers, plus purchase vehicles and construct facilities
• $45 billion dedicated to Immigration and Customs Enforcement for detention capacity covering single adults and family residential centers
Lawmakers set aside $2.575 billion in grants for state and local law enforcement, providing agencies with tools to counter emerging threats. That funding supports drone detection nodes, security programs at high-profile international events and cross-border collaboration through Operation Stonegarden. An extra tranche covers reimbursements for state and local units that protect presidential residences.
This grant pool includes:
• $500 million for installations that detect and track unauthorized drone activity
• $625 million to secure venues and perimeters during the 2026 FIFA World Cup
• $1 billion targeting security for the 2028 Olympic Games
• $450 million channelled into Operation Stonegarden, boosting joint patrols along the border
• $300 million for FEMA to reimburse state and local law enforcement costs tied to Secret Service protection duties
Under Judiciary Committee jurisdiction, the act provides nearly $45 billion for immigration enforcement and related law enforcement efforts across federal, state and local agencies. This section funds personnel, transport assets, technology upgrades, training facilities and coordination programs designed to locate, detain and prosecute individuals who face criminal removal proceedings.
Funds divided by category:
• $2 billion for Department of Homeland Security immigration enforcement activities, including personnel costs, transportation, background checks and family unity initiatives
• $29.85 billion for ICE hiring, training, retention bonuses, fleet and technology upgrades, plus partnership operations with state and local forces
• $750 million for Federal Law Enforcement Training Centers, supporting basic and advanced instruction for immigration officers
• $3.33 billion for U.S. Department of Justice to expand immigration courts, prosecute drug trafficking cases and invest in case-management systems
• $3.5 billion in state and local grants aimed at locating, apprehending and bringing criminal aliens to justice
• $5 billion for the Federal Bureau of Prisons to cover housing for immigration-related detainees and to build or upgrade detention facilities
• $500 million for Secret Service – funding additional agents, training programs, protective equipment and special ops support
Tax and workforce development provisions within OBBBA address SIA’s top five priorities for the 2025 tax year. Passage of these measures preserves critical incentives for businesses that invest in new technology, equipment and employee training.
These provisions are:
• Pass-through deduction: makes permanent the 20 percent deduction for qualifying pass-through business income introduced in 2017, giving firms certainty for future tax filings
• 100 percent bonus depreciation: full expensing for qualified property acquisitions now stands as a permanent incentive, helping companies manage costs for security system upgrades and building improvements
• R&D expensing: domestic R&D outlays can once again be expensed immediately instead of amortized over five years (15 years for foreign R&D), restoring a valuable benefit for small businesses and startups
• Interest-deduction adjustments: EBITDA-based calculations return to section 163(j), adding back depreciation and amortization into the deduction limit; some ordering changes apply before elective interest capitalization
• Expanded 529 plan use: distributions may now fund postsecondary credential programs, aligning with industry certifications advocated by the Professional Certification Coalition
A debated proposal to freeze state-level AI rules did not make it into the final text. That concept appeared in earlier drafts of both chambers’ bills, signaling wide support for a unified national standard instead of a patchwork of state laws. SIA is pressing for a federal AI statute that safeguards public welfare and gives security providers clear guidance on technology use.
Defense panels put money toward counterdrone research and production, secure facilities for defense contractors, small-business cyber support, DARPA cyber programs and enhanced border and counterdrug operations.
Allocations in that category:
• $1.3 billion for research, development and production of counterdrone programs to detect, track and disable hostile unmanned aerial systems
• $100 million to build and maintain shared secure facilities within the defense industrial base, enabling vetted suppliers to work on classified efforts
• $90 million for APEX Accelerators, the Mentor-Protégé Program and cybersecurity assistance targeted at small, nontraditional defense contractors
• $20 million for defense-related cybersecurity initiatives overseen by the Defense Advanced Research Projects Agency
• $1 billion for Department of Defense support of border security and counternarcotics missions
Airport operations receive a dedicated $500 million meant for runway safety upgrades. Funds will cover advanced lighting layouts, surface movement radar systems and related infrastructure projects that reduce the risk of collisions and other ground incidents.
To improve protection for unaccompanied undocumented minors, OBBBA commits $300 million to the office that evaluates sponsor eligibility and child safety protocols. That funding supports upgraded identity-verification processes during background screenings of potential sponsors and adult household members, along with better data systems to share information that can detect trafficking or child-labor threats.
