President Donald Trump’s sweeping tax-cut legislation passed its final hurdle on Thursday, as the Republican-led House narrowly approved the 869-page bill in a 218-214 vote.
The legislation makes Trump’s 2017 tax cuts permanent, introduces new breaks for parents, businesses, and tipped workers, and raises the U.S. debt ceiling by $5 trillion. It also slashes healthcare and food assistance programmes, ending green energy incentives and shifting money toward Trump’s domestic priorities, including immigration enforcement.
According to Reuters, the Congressional Budget Office estimates the bill would add $3.4 trillion to the $36.2 trillion national debt, reduce tax revenue by $4.5 trillion over a decade, and cut spending by $1.1 trillion—primarily from Medicaid. About 12 million low-income Americans could lose coverage due to work requirements and tightened eligibility.
Despite internal concerns over the cost and healthcare cuts, only two House Republicans voted against it. Every Democrat opposed the bill, calling it a handout to the wealthy at the expense of vulnerable Americans. House Democratic Leader Hakeem Jeffries condemned the bill in a record-breaking speech, while House Speaker Mike Johnson defended it as “jet fuel for the economy.”
The Senate passed the bill earlier in a 51-50 vote, with Vice President JD Vance casting the tiebreaker. Trump pushed hard for the legislation, pressuring lawmakers via social media to meet his July 4 deadline. The White House confirmed he would sign it on Friday.
Analysts warn the bill’s benefits favor the rich, while safety-net cuts harm the poor. Moody’s recently downgraded U.S. debt, citing fiscal concerns. Republicans believe the economic boost from the tax cuts will help them in the 2026 midterms, especially since many of the spending cuts won’t take effect until after the election.