After days of intense debate and behind-the-scenes pressure from the White House, the U.S. Congress narrowly passed President Donald Trump’s sweeping tax-cut and spending bill on Thursday. The “One Big Beautiful Bill” secured a final vote of 218-214, marking the biggest legislative victory of Trump’s second term in office.
The White House celebrated on social media, declaring “VICTORY” and announcing that President Trump would sign the bill into law on Friday, coinciding with the July 4 Independence Day holiday.
A Narrow Passage After Lengthy Debate
The vote was delayed until Thursday after Democratic House Minority Leader Hakeem Jeffries spoke against the bill for nearly nine hours, attempting to stall the proceedings. In a passionate speech, Jeffries highlighted the potential negative impacts of the bill on everyday Americans.
“This bill, this one big, ugly bill – this reckless Republican budget, this disgusting abomination – is not about improving the quality of life of the American people,” Jeffries stated.
What’s in the Bill?
Tax Cuts
The bill plans to cut taxes by $4 trillion over the next 10 years and reduce spending by at least $1.5 trillion. It introduces multiple tax relief measures, including exemptions on overtime pay and tips, as well as a significant increase in the exemption amounts for estate and gift taxes. These exemptions will continue to adjust in line with inflation in the future.
While the White House touts the law as a stimulus for economic growth, experts argue that it will benefit wealthy Americans the most.
Cutting Spending
The legislation will reduce Medicaid funding by nearly $1 trillion, adding additional restrictions and requirements for Medicaid, the healthcare program relied upon by millions of disabled and low-income Americans. The Congressional Budget Office estimates that nearly 12 million Americans could lose their health coverage by the end of the next decade due to these changes.
The bill also tightens eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP), increasing the minimum age for food aid eligibility from 54 to 64. SNAP is used by over 40 million low-income Americans. The change is expected to cut $230 billion in funding over the next 10 years.
Raising the Debt Ceiling
The savings from these reduced spending programs will be allocated towards increasing military funding and border security. The bill also proposes raising the federal debt ceiling by an additional $5 trillion.
Impacts and Reactions
The bill is expected to add an extra $3.4 trillion over a decade to the country’s fast-growing deficit. It also signals the largest cuts to the Medicaid health insurance scheme for low-income Americans since its inception in the 1960s. Some estimates suggest that up to 17 million recipients could lose their insurance coverage under the bill, and scores of rural hospitals are expected to close.
Public opinion on the bill is largely negative. According to recent polling by the nonpartisan Pew Research Center, 49% of Americans oppose the legislation, while only 29% support it. Majorities expressed concern that the legislation would raise the budget deficit and harm lower-income people while benefiting the wealthy.
The White House disputed the polling data, insisting that internal polls showed strong support for many specific provisions of the law.
Democratic leaders hope that public opposition to the bill will help them in the upcoming 2026 midterm elections. They point to data indicating that the legislation represents a significant redistribution of wealth from the poorest Americans to the richest.
Looking Ahead
Despite the controversy, President Trump remains confident. “Everything was an absolute disaster under the Biden-Harris radical regime, and we took the best effort that we could, in one big, beautiful bill, to fix as much of it as we could,” he said.
Political analysts suggest that while Trump may pay little political price due to term limits, Republicans seeking future office may face consequences. Democrats are mobilizing to capitalize on public dissatisfaction, aiming to flip the House in the next election.
The bill’s passage marks a pivotal moment in U.S. politics, with potential long-term effects on the nation’s economy and social programs.
