Washington, July 5: U.S. President Donald Trump secured a major legislative victory on Thursday as Congress narrowly approved his flagship tax and spending bill, a sweeping package that permanently extends his 2017 tax cuts, delivers new breaks to families and businesses, and imposes deep cuts to federal safety net programs.
The House of Representatives passed the 869-page “Big, Beautiful” Bill in a 218–214 vote, after intense lobbying from the White House and House Speaker Mike Johnson to flip key Republican holdouts. The legislation, already passed in the Senate with Vice President J.D. Vance casting the tie-breaking vote, will be signed into law by Trump on Friday, July 4, the White House said.
The bill is projected to add $3.4 trillion to the U.S. national debt, now standing at $36.2 trillion, according to the nonpartisan Congressional Budget Office (CBO). It lowers federal tax revenue by an estimated $4.5 trillion over the next decade, while slashing $1.1 trillion in federal spending, largely through cuts to Medicaid.
Despite fiscal concerns among some Republicans, only two GOP lawmakers — Representatives Brian Fitzpatrick of Pennsylvania and Thomas Massie of Kentucky — voted against the bill. Massie said the legislation “did not go far enough” in reducing federal spending.
Democrats unanimously opposed the measure, calling it a giveaway to the wealthy at the expense of working families. “This bill hurts everyday Americans while handing out massive tax breaks to billionaires,” said House Democratic Leader Hakeem Jeffries, who spoke for a record 8 hours and 46 minutes in protest.
The legislation fulfills several of Trump’s 2024 campaign promises, including expanded tax benefits for parents, seniors, overtime workers, and tipped employees. It also creates a five-year, $50 billion fund for rural health providers to offset expected strain from Medicaid reforms.
Still, the CBO estimates that nearly 12 million Americans could lose healthcare coverage under the bill’s tightened Medicaid eligibility and work requirements. The bill also eliminates dozens of green energy incentives and rolls back federal Medicaid financing mechanisms that many states rely on.
To avert a looming fiscal crisis, the package also raises the federal debt ceiling by $5 trillion, avoiding a default but raising alarms among economists and credit agencies. Moody’s downgraded U.S. debt in May, citing long-term fiscal risks.
In the final days of negotiations, Republicans stripped out controversial provisions — including a retaliatory tax on foreign investment and a measure restricting state-level regulation of artificial intelligence — after pushback from markets and industry groups.
Trump maintained pressure on lawmakers throughout the process. “FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!” he wrote on social media during final talks.
The legislation is expected to be a key issue in the 2026 midterm elections, with Democrats vowing to challenge the law’s impact on healthcare and inequality. Many of the deepest spending cuts are scheduled to take effect after the election. Trump is scheduled to sign the bill into law at 5 p.m. ET on Friday, coinciding with Independence Day celebrations.
