Washington: The U.S. House of Representatives has granted final approval to President Trump’s sweeping tax-and-spending package—dubbed the “One Big Beautiful Bill”—by a close vote of 218–214. This marks a key victory for Trump’s legislative agenda, but brings major political and fiscal risks.
Bill Highlights
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Tax Cuts Extended
Permanently extends the 2017 Trump-era tax reductions and adds new breaks for tip income, overtime pay, and even a deduction for car loan interest. -
Family & Savings Upgrades
Raises the child tax credit to $2,500 and introduces a $1,000 per newborn “Trump savings account.” The SALT deduction cap also temporarily increases to $40,000. -
Defense & Border Funding
Injects a substantial boost into military spending and border enforcement, including new deportation infrastructure. -
Medicaid & Welfare Changes
Implements significant cuts via work requirements and eligibility changes to Medicaid and SNAP, slashing nearly $930 billion from social safety nets. -
Debt Ceiling Increase
Raises the federal borrowing limit by several trillion dollars to cover the bill’s costs.
Political Fallout & Process Ahead
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Party Split
The final House tally reflected a fiercely divided GOP: two Republicans opposed the bill alongside all Democrats. Speaker Johnson leaned heavily on wavering members late into the night. -
Democrat Filibuster
Minority Leader Hakeem Jeffries delayed the vote for nearly nine hours with an unprecedented floor speech denouncing the bill as a "crime scene" for cutting vital services. -
Tiebreak in Senate
Previously, the Senate advanced the bill 51–50, with Vice President Vance casting the tie-breaking vote—following intense debate and last-minute concessions to senators like Lisa Murkowski. -
Now to the President
With House approval, the package is expected to reach President Trump’s desk imminently for final signature—fulfilling his goal of completing the legislative process before July 4.
Fiscal Impact & Criticism
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Massive Deficit Increase
The Congressional Budget Office estimates the bill will add roughly $3.3 trillion to the national debt over ten years. -
Coverage at Risk
Up to 12 million Americans are projected to lose Medicaid coverage by 2034 due to new eligibility restrictions. -
Benefiting the Wealthy
Analysts say the tax breaks heavily favor high-income earners, raising concerns about equity and long-term growth.
What Comes Next
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Implementation: If signed, the provisions take effect swiftly—with immediate tax or spending changes.
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Political Consequences: The bill's deep cuts could shape voter sentiment in the 2026 midterms, particularly in districts hit hardest.
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Potential Legal Roadblocks: Expect lawsuits challenging the bill’s adjustments to Medicaid and federal assistance programs.
Bottom Line: Trump’s signature fiscal package has cleared Congress in a high-stakes, narrow vote—securing a policy win but also stirring controversy over debt and social welfare. Now it’s on the president’s desk, with real-time consequences and political fallout looming.