Cliff Notes
- Donald Trump‘s tax cuts and spending cuts package, which aims to fulfil campaign promises for 2024, was narrowly approved by the Republican-controlled House with a 218-214 vote and is set to become law.
- The bill is projected to reduce tax revenues by $4.5 trillion over 10 years, potentially adding $3.4 trillion to the national debt, and has been condemned by Democrats as a tax giveaway to the wealthy.
- Significant cuts are aimed at Medicaid and health programmes, which could leave nearly 12 million Americans uninsured, while also instituting new tax breaks for certain demographics.
Donald Trump’s ‘big beautiful’ tax cuts bill passes final hurdle in US Congress | US News
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Donald Trump’s ‘big beautiful bill’ has been passed by the US congress, sending it to the president to sign into law.
The controversial tax breaks and spending cuts package cleared its final hurdle as the Republican-controlled House of Representatives narrowly approved the bill with a 218-214 vote.
The bill delivers tax breaks Mr Trump promised in his 2024 election campaign, cuts health and food safety programmes, and zeroes out dozens of green energy incentives.
According to the nonpartisan Congressional Budget Office (CBO), it will lower tax revenues by $4.5trn over 10 years and add $3.4trn to the US’s $36.2trn debt.
But despite concerns over the 869-page bill’s price tag – and its hit to healthcare programmes – Republicans largely lined up in support, with just two rebelling on the vote.
Every Democrat in Congress voted against the bill, blasting it as a giveaway to the wealthy that will leave millions of Americans uninsured.
House Speaker Mike Johnson made the Republicans’ closing argument for the bill, telling Congress: “For everyday Americans, this means real, positive change that they can feel.”
Earlier, the House’s Democratic leader Hakeem Jeffries gave a record-breaking eight-hour and 44-minute speech against it.
“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,” he said.
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Trump plans Fourth of July bill signing ceremony
Mr Trump will sign the bill into law on Friday at 5pm local time (10pm in the UK), the White House said.
Speaking to reporters at Joint Base Andrews, Mr Trump hailed the package as “the biggest bill ever signed of its kind”.
“It’s going to make this country into a rocket ship,” he added.
The US president added that as he signs it into law – on the Fourth of July – fighter jets will fly over the White House.
“We’ll be signing with those beautiful plans flying right over our heads,” he said.
What does the bill include?
The bill’s spending cuts largely target Medicaid, the health programme that covers 71 million Americans on low incomes.
It will tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments.
The changes could leave nearly 12 million people without health insurance, according to the CBO.
On the other side of the ledger, it will stave off tax increases that were due to hit most Americans at the end of the year, when tax cuts from President Trump’s first term were due to expire.
It also sets up new tax breaks for overtime pay, seniors and tipped income.
The bill narrowly passed the US Senate on Tuesday after vice president JD Vance cast the deciding vote to break a 50-50 tie.