The massive budget bill signed into law by President Donald Trump on Independence Day didn’t include everything on Big Tech’s wishlist, but the industry’s largest players stand to gain significantly from several provisions in the One Big Beautiful Bill Act.
Technology
What Big Tech got out of Trump’s Big Beautiful Bill
The Republican-backed legislation is best known for its tax cuts on tips, deduction caps that could primarily benefit wealthy taxpayers, restriction on healthcare coverage for low-income and disabled Americans, cuts to renewable energy incentives, and tens of billions of dollars in funding to immigration enforcement. But it also includes restored tax deductions for research and development and other items that could benefit the tech industry, among other businesses.
In one high-profile fight, the tech industry failed to secure a moratorium on state AI laws, a proposal which had been supported by several trade groups and might have also affected a host of other state tech protections. But after months of lobbying from Congress to Mar-a-Lago, the industry will see slashed taxes and may receive new contracts from border enforcement funding, the Tech Oversight Project finds in a new report shared exclusively with The Verge. Some changes will likely benefit businesses of all sizes and sectors — while others may offer large companies in the tech industry the biggest benefits.
The budget bill essentially reverses a policy from Trump’s first term that limited how companies could write off research and development on their taxes. The 2017 Tax Cuts and Jobs Act (TCJA) forced companies to spread write-offs for domestic R&D costs across five years, rather than deducting them fully in the year they were incurred. Now, Congress is restoring the previous, more generous deduction setup, and small businesses can get retroactive tax write-offs for the last couple years when the changes — which took effect in 2022 — were in place.
In a recent report, Quartz linked the R&D deduction changes to the wave of layoffs across the industry, describing how it made it so companies could effectively only write off one-fifth of their R&D costs in the year they were incurred, rather than the full sum, making salaries for engineers and other high-skilled roles much more costly. The nonpartisan Institute on Taxation and Economic Policy (ITEP) found that in the three years in which the TCJA changes took effect, Alphabet, Amazon, Apple, Meta, and Tesla saw their tax bills rise a collective $75 billion as a result.
“The loss of full R&D expensing disincentivizes firms from significantly increasing their R&D investments”
So unsurprisingly, tech-backed groups like the Information Technology and Innovation Foundation (ITIF) and the Business Software Alliance (BSA) pushed to revert the rule. “The loss of full R&D expensing disincentivizes firms from significantly increasing their R&D investments because the cost of those investments has risen,” ITIF wrote in a blog post earlier this year.
Maintaining a lower corporate tax rate
Conversely, business groups successfully pleaded with lawmakers to keep a different change from the TCJA: a massive reduction in the corporate tax rate from 35 percent to 21 percent. In a letter to lawmakers last year, tech-backed Information Technology Industry Council (ITI) told lawmakers that the reduction had brought the US in line with peer countries, and provided US companies “a more level playing field against their international competitors,” which the nonprofit Tax Foundation found helped boost US investment. Democrats who have opposed the lower tax rates have framed it as a handout to corporate America.
Extending lower international tax rates
The new budget law also blocks a scheduled increase in the effective tax rates on things like the money companies make abroad based on US-based patents or other intangible assets.
These kinds of taxes — the base erosion and anti-abuse tax (BEAT), global intangible low-taxed income tax (GILTI), and the foreign-derived intangible income tax (FDII) — are generally meant to prevent shifty accounting practices like moving assets to a foreign subsidiary. Before the One Big Beautiful Bill Act passed, the effectively lowered rates through these three policies were set to expire at the end of 2025.
The tech industry argued protecting those low rates would keep US companies competitive with other countries, like France and the UK. “Several other nations already offer IP incentives,” ITI told lawmakers in an October letter. “It is essential that the FDII rate remains as low as possible.”
“The tax break disproportionately benefits large corporations with significant intellectual property portfolios”
But groups like the nonpartisan Financial Accountability and Corporate Transparency (FACT) Coalition and ITEP see lower rates for taxes like the FDII as a giveaway to the biggest players in the tech industry, which deal heavily in intangible assets like patents and trademarks.
“The tax break disproportionately benefits large corporations with significant intellectual property portfolios while doing little for smaller firms that lack similar assets,” ITEP wrote in a blog post last year, where it found that Google parent Alphabet reported over $11 billion in tax benefits from 2018 to 2023 as a result of the FDII.
Border protection funding could flow to tech
Alongside a significant budget increase for Customs and Border Protection (CBP) and other immigration-related funding, the law includes about $6 billion for border technologies, including surveillance systems. That money could flow to several large tech firms already engaged in the space.
Those include Peter Thiel-founded data company Palantir, which currently has a $30 million contract with Immigration and Customs Enforcement (ICE) to build “ImmigrationOS” to create “near real-time visibility into instances of self-deportation.” Thiel-backed Anduril also stands to gain if the agency expands infrastructure like the surveillance towers it already supplies to the government. MIT Technology Review reported in 2018 that Amazon Web Services hosted Department of Homeland Security (DHS) databases related to immigration, including a deep pool of biometric data.
Other tax-saving adjustments
Tech companies and other businesses will also benefit from changes in how business interest deductions are calculated, and a permanent extension of rules allowing companies to take a full deduction of certain equipment expenses. House Democrats have previously called this kind of tactic a “Tax Scam,” writing, “Two-thirds of the benefits go to corporations making over $250 million in revenue, and from 2018 through 2021, about two dozen of the largest corporations received roughly $50 billion in tax breaks through this provision.”
Some of the tax changes in the bill will benefit smaller firms and businesses across many different industries. But large tech companies are particularly well positioned to benefit from changes in how foreign profits on intellectual property are taxed and fuller R&D write-offs. After months of cozying up to the Trump administration with little to show for it, it looks like the largest players in the industry have finally notched some wins.
Valve now says that the delayed Steam Machine PC and Steam Frame VR headset are set to launch sometime this summer. In a Thursday blog post detailing its Verified programs for both pieces of hardware, Valve concludes by saying that “We’re excited for players to try your titles on the new Steam hardware once they launch this summer.”
When the company originally announced the Machine and Frame alongside its new Steam Controller late last year, it said that it would start shipping the new gadgets in early 2026. But in February, the company announced that the ongoing memory and storage crunch had forced it to revisit its pricing and shipping plans. And in March, Valve said in a blog post that it would be “shipping all three products this year” — though that was after the company initially said in the post that “we hope to ship in 2026,” which it removed in an update.
Valve opted to release the Steam Controller on its own, putting it up for sale in early May. For the Machine and Frame, while “summer” isn’t exactly a specific date, it narrows the window for when the products might finally come out.
Ahead of actually launching the devices, Valve is redesigning the Steam store and sharing information about the Verified programs for the hardware so that developers can prepare their games. Like with the Steam Deck, if a game is verified for the Machine or the Frame, the badge signals that the game should work well without any tweaks from the user.
For the Machine, the requirements for a game to be verified are “nearly identical” to what they are for the Steam Deck. With the Machine being “roughly six times as powerful” as the Deck, in theory, many more games will be verified for it. Valve also says that it’s testing “every title on Machine that fell below our performance requirements on Deck.”
For the Frame, Valve’s verified badge will signify games that run well while being played natively on the headset — as opposed to games that work well streamed to the headset, which the Frame is also capable of. “Like Steam Deck Verified, the Steam Frame Standalone Verified program focuses on the experience customers will have with the device out-of-the-box in standalone mode,” Valve says.
Now, we just need Valve to share exactly when the Steam Machine and Steam Frame will be released and how much they might cost. After last week’s price hikes for the Steam Deck, I’m gearing up for sticker shock.
NEWYou can now listen to Fox News articles!
Humanoid robots just got another real job. This time, they are clocking in behind the scenes at a major retail operation. Figure AI has signed a commercial agreement with Catalyst Brands. That is the company behind JCPenney, Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica.
The first rollout begins at Catalyst’s Reno, Nevada Distribution Logistics Center. So, no, these robots are not greeting shoppers or folding jeans in the store aisle. At least not yet.
For now, they are heading into warehouse and supply chain work. Still, the announcement has some people worried. Many see humanoid robots entering a workplace and immediately wonder what happens to human jobs. That concern is fair.
Join CyberGuy Live: Lock Down Your Phone in 30 Minutes (Saturday, June 13, 10 am ET)
- Your phone holds your email, passwords, photos, banking apps and personal data. In this free, live online class, Kurt the CyberGuy will walk you step by step through simple phone security fixes you can do in real time. You’ll learn how to improve your privacy settings, spot the latest phone scams, use trusted security tools and walk away with a simple checklist to stay protected. Register here: CyberGuyLive.com.
THE AI-POWERED ROBOT ARMY THAT PACKS YOUR GROCERIES IN MINUTES
Figure’s humanoid robots are starting behind the scenes in Catalyst Brands’ Reno warehouse, not on the store floor. (Figure AI)
Figure’s humanoid robots enter warehouse work
Catalyst Brands says Figure’s humanoid robots will help with supply chain work. The companies say the robots will focus on repetitive, physically demanding sorting and packing tasks. In other words, this starts with warehouse work that can wear people down over time. The robots will first assist with Catalyst’s Joey Pouch sorting system in Reno. That system helps with computerized induction, sorting and packing inside the facility. Catalyst says the Reno site also underwent a $40 million infrastructure update in 2024.
“As we invest in and scale our portfolio, this collaboration with Figure shows how emerging technologies can modernize our operations while strengthening our workforce,” said Marc Rosen, CEO of Catalyst Brands. “When we automate routine tasks, our associates can focus on higher-value work and better serve our customers across all our brands.”
So, this is happening behind the scenes in the warehouse, not on the store floor. That detail is important, especially because some online reactions made it sound like robots were already headed into retail stores. The announcement points to warehouse operations first. Still, warehouse jobs are real jobs. That is why this deal is getting so much attention.
Why the Figure AI and Catalyst Brands deal stands out
Catalyst Brands owns several major retail brands and operates a large retail network. Figure AI also describes this as a step toward deploying humanoid robots at scale, even though it has not said how many robots will be used.
There is also a financial connection behind the scenes. Brookfield is an investor in Figure AI and also has a stake in Catalyst Brands. Figure says this is the first commercial bridge between Figure and a Brookfield portfolio company.
If the robots perform well in Reno, the companies could look for more ways to use them across the business.
AI LAYOFFS MAY BE BACKFIRING ON COMPANIES
The robots will first assist with repetitive sorting and packing work inside Catalyst’s updated distribution center. (Figure AI)
What Figure AI has not revealed yet
The announcement leaves out several key details. We do not know how many robots Figure AI will deploy. We do not know the exact start date. We also do not know whether Catalyst is buying the robots, leasing them or using a robots-as-a-service model. The companies have also not said how many human roles could change because of the rollout.
Figure AI says the robots are being integrated into Catalyst’s distribution facility and will focus on physically demanding work. However, the release does not spell out the exact jobs the robots will handle day to day.
That missing information gives people room to worry. It also gives people room to guess. And online, people did both. Some thought humanoid robots were coming straight into stores. Others focused on the bigger fear, which is that robots could take over jobs that people depend on.
Why humanoid robots make workers nervous
The fear around this deal goes beyond one company. Workers have already watched companies use AI to cut costs, slow hiring and reorganize teams. Now, physical robots are entering spaces where people lift, sort, pack and move products. That feels different.
Figure AI and Catalyst say the robots can handle routine tasks and help associates shift toward higher-value work. That sounds promising. However, workers may hear a very different message. They may wonder who gets retrained. They may also wonder who gets replaced. Companies cannot brush off those concerns. If humanoid robots are coming into more workplaces, workers deserve clear answers.
JOBS THAT ARE MOST AT RISK FROM AI, ACCORDING TO MICROSOFT
The big question is whether humanoid robots will help workers handle tough warehouse tasks or eventually replace some of those jobs. (Figure AI)
Why retail companies want warehouse robots
Warehouse work can be tough on the body. People lift boxes, move products, repeat the same motions and race to keep up when orders spike. That is why retail companies are looking hard at automation.
Figure’s pitch is that humanoid robots can fit into places already built for people. They do not need a warehouse rebuilt from scratch. In theory, they can step into certain jobs and help with repetitive work.
For a retailer, that could mean products move faster, and workers face less physical strain. It could also help during busy shopping seasons, when distribution centers get slammed.
What to watch next with Figure AI robots
The next big signal will be whether Catalyst expands the robot program beyond Reno. A small rollout may be a learning test. A wider deployment would point to a much larger shift in how retailers move products.
Watch for details on robot count, job duties and worker impact. Those specifics will tell us more than anything else. Also, pay attention to how companies talk about employees. If they say robots will help workers move into better roles, they should explain exactly how that will happen. Workers deserve more than buzzwords.
What this means for you
These robots may start in a warehouse, but the ripple effect could eventually reach workers, shoppers and prices.
For shoppers, the upside is easy to see. If robots help move products faster, stores may have fewer empty shelves. Online orders could also move through warehouses more quickly.
For workers, it gets more complicated. Companies often say robots will take over the hardest tasks so people can move into better roles. That sounds good, but workers need more than a promise. They need training. They need clear answers. They also need to know whether a robot is there to help them or replace them.
And for the rest of us, this raises a bigger question. Are we comfortable with retailers using humanoid robots if it makes shopping faster or cheaper? Or do we want companies to prove that people are still part of the plan?
Kurt’s key takeaways
Figure AI’s deal with Catalyst Brands shows how quickly humanoid robots are entering our workplaces. For now, these robots are starting in a distribution center. They are not walking through the aisles at JCPenney. That distinction is important. Still, the bigger concern remains. People want to know whether these machines will help workers or slowly push them aside. Automation can reduce hard physical work. It can also create real fear when companies avoid direct answers. Humanoid robots may soon become a normal part of warehouse operations for retailers. The real test will be whether companies use them in a way that helps people, instead of treating people like a cost to cut.
Would you shop with a retailer that uses humanoid robots in its warehouses, or would that make you think twice? Let us know by writing to us at CyberGuy.com.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Sign up for my FREE CyberGuy Report
- Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox.
- For simple, real-world ways to spot scams early and stay protected, visit CyberGuy.com – trusted by millions who watch CyberGuy on TV daily.
- Plus, you’ll get instant access to my Ultimate Scam Survival Guide free when you join.
Copyright 2026 CyberGuy.com. All rights reserved.
Tan and countless other DIYers are attracting millions of views showing off the personal computers they’ve built inside purses, jewelry boxes, toys, and old tech, hiding Raspberry Pi boards inside art projects.
Cyberdecks, but make it fashion
The colorful, quirky builds popping up across social media are a drastic shift away from the typical look the cyberdecks we’ve featured have had, which often consisted of a 3D-printed chassis or a rugged box like a Pelican case, usually with a cyberpunk-style design.
Inside, these homemade devices are essentially mini Linux computers for specific tasks, usually done offline, like reading, journaling, or listening to music. But now, a cyberdeck doesn’t have to look like a computer at all.
-
News3 minutes agoHow Trump’s Proposed Arch Could Complicate D.C.’s Congested Airspace
-
Lifestyle36 minutes agoA new ‘Cape Fear’ remake rolls out one surprise after another
-
Technology48 minutes agoValve says it’s ready to launch the Steam Machine this summer
-
World51 minutes agoAs Hezbollah rejects truce, families on Israel’s northern border describe life under fire
-
Politics56 minutes agoRubio sanctions Cuban groups with ties to US nonprofit network funded by communist donor Neville Roy Singham
-
Health1 hour agoPeople taking common sleep drug may not realize they’re too impaired to drive, study finds
-
Sports1 hour agoSeth Jarvis scores overtime game-winner as Hurricanes storm back from 2-0 deficit to even Stanley Cup Final
-
Technology1 hour agoAre humanoid robots now coming for retail jobs?
