Big Beautiful Bill: Trump secures major win as House narrowly passes sweeping tax and spending Bill
Big Beautiful Bill: In a closely contested vote, the US House of Representatives on Thursday passed President Donald Trump’s far-reaching tax and spending bill, marking a major legislative triumph for the Republican leader during his second term in office. The Bill, spanning 869 pages, was approved with a razor-thin margin of 218–214 and now awaits Trump’s signature at a scheduled ceremony on Friday, July 4.
The legislation, which cleared the Senate earlier this week thanks to a tie-breaking vote by Vice President JD Vance, aims to make the 2017 tax cuts permanent. It also introduces new tax breaks while imposing sweeping reductions to federal safety net programmes — particularly Medicaid.
According to the nonpartisan Congressional Budget Office (CBO), the Bill is expected to reduce federal tax revenue by $4.5 trillion over the next decade. However, it offsets only $1.1 trillion in federal spending, resulting in a projected addition of $3.4 trillion to the already ballooning national debt, currently at $36.2 trillion.
Despite internal Republican concerns over the fiscal impact, only two GOP lawmakers — Rep. Brian Fitzpatrick of Pennsylvania and Rep. Thomas Massie of Kentucky — broke party ranks to vote against the Bill. Massie argued that the spending cuts did not go far enough to rein in government expenditure.
Democrats were united in opposition, calling the measure a gift to the ultra-wealthy at the expense of working families. “The justification for all of the cuts that will hurt everyday Americans is to provide massive tax breaks for billionaires,” said House Democratic Leader Hakeem Jeffries of New York, who spoke for eight hours and 46 minutes in a record-breaking speech.
Key provisions of the Bill
The Bill includes expanded tax benefits for parents, senior citizens, overtime workers, and employees earning tipped wages — fulfilling several promises made by Trump during his 2024 campaign. A five-year, $50 billion fund has been allocated to assist rural healthcare providers, intended to cushion the blow from anticipated Medicaid reductions.
However, the CBO estimates that around 12 million Americans could lose Medicaid coverage due to tightened eligibility criteria and stricter work requirements. The Bill also repeals numerous green energy tax incentives and revokes mechanisms that allowed states to access higher Medicaid reimbursements.
Analysts warn that while affluent Americans stand to gain significantly, many low-income households may see a net loss in benefits, with safety net cuts overshadowing modest tax relief.
The Bill also includes a provision to raise the federal debt ceiling by $5 trillion, temporarily averting the threat of a US government default. Nevertheless, long-term concerns remain. Credit rating agency Moody’s downgraded US debt in May, citing an unsustainable fiscal trajectory and ongoing political gridlock.
In response to market backlash, Republicans removed several controversial provisions in the final days of negotiation — including a proposed retaliatory tax on foreign investors and a clause limiting state regulations on artificial intelligence.
Trump’s push and 2026 political stakes
President Trump exerted relentless pressure on GOP lawmakers to support the Bill. In a social media post, he urged, “FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!”
The legislation is expected to become a central issue in the 2026 midterm elections. While many spending cuts are delayed until after that electoral cycle, Republicans contend that the immediate tax reductions will stimulate the economy and solidify their policy agenda.
Trump is set to officially sign the Bill into law at 5 pm Eastern Time on Friday.
- With inputs from agencies
