Congress Passes Trump’s Tax and Spending Bill in Narrow Victory
President Donald Trump secured a major legislative tax cut and spending bill, clearing its final hurdle in the U.S. Congress on Thursday. The House of Representatives narrowly passed the 869-page bill with 281-214 votes, pushing through the domestic agenda ahead of the July 4 Independence Day holiday.
This bill already passed the Senate earlier this week with Vice President JD Vance casting the tie-breaking vote, and is expected to be signed into law by Trump at 5 PM ET on Friday.
While the bill permanently extends Trump’s 2017 tax cuts and offers some new tax breaks for parents, businesses, and workers, it also reduces funding for healthcare, food aid, and environmental programmes. The Congressional Budget Office also estimates that the bill will add $3.4 trillion to the national debt over the next decade.
Divided Votes
Despite issues with their own party, the bill’s cost, and its deep cuts to Medicaid and green energy incentives, only two Republicans broke ranks to vote against it. Democrats, on the other hand, stood united in opposition, blasting the legislation as a handout to the wealthy.
Democratic leader, Hakeem Jefferies, delivered an impassioned speech lasting 8 hours and 46 minutes, which is the longest in history, containing the bill’s impact on everyday Americans. He said that the justification for these painful cuts is to avoid massive tax breaks for billionaires.
The vote followed a marathon week of debates and overnight negotiations as Republicans raced to meet the July 4 deadline for the bill. Throughout the process, the President used his social media platform to pressure lawmakers.
Cuts to Medicaid, More Debt
According to the CBO, the bill will lower tax revenues by $4.5 trillion and spending by $1.1 trillion over the next 10 years. A major reduction in Medicaid, which is a health program serving 71 million low-income Americans with new work requirements, new enrollment standards, and funding changes, could leave 12 million people uninsured.
Though $50 billion was added for rural health care to soften the blow, analysts still say that the bill will primarily benefit high-income people while reducing the net income of lower-income families due to safety net cuts.
Election Stakes and Long-Term Impact
While the bill raises the debt ceiling by $5 trillion, avoiding short-term default risks, critics argue, it will create long-term challenges for America. Trump allies argue that by saving off expiring tax increases, the bill will stimulate growth. New tax breaks for seniors, tipped workers, and auto loans are designed to win support ahead of the 2026 elections.
Though too many of the bill’s benefit cuts are delayed until after the 2026 elections, its approval marks a very important moment for the Trump administration.
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