After a dramatic all-night session, House Republicans narrowly passed US President Donald Trump’s expansive tax and spending bill, dubbed the “One Big Beautiful Bill”, early Thursday, overcoming internal divisions and unified Democratic opposition. The 215-214 vote marked a major legislative win for Trump and Speaker Mike Johnson, sending the bill to the Senate for further deliberation.Trump hailed the bill on Truth Social, calling it “arguably the most significant piece of Legislation that will ever be signed in the History of our Country.”He praised provisions such as “Massive Tax Cuts, No Tax on Tips, No Tax on Overtime,” new deductions for American-made vehicles, increased funding for border security and the military, and the introduction of “Trump Savings Accounts” for newborns.The 1,000-plus page bill combines a 10-year extension of Trump’s 2017 tax cuts with new tax breaks he championed during his 2024 campaign. These include raising the standard deduction to $32,000 for joint filers, boosting the child tax credit to $2,500, and introducing a $4,000 deduction for some older adults.However, as per news agency AFP, critics have warned the bill would severely damage the social safety net. The nonpartisan Congressional Budget Office (CBO) estimates it will increase federal deficits by $3.8 trillion over a decade. The bill’s cost-cutting measures include tightening Medicaid and SNAP eligibility by imposing work requirements. The CBO projected that 8.6 million people would lose health coverage, and 3 million would lose food assistance each month.“These are the largest cuts to health care in American history… in order to enact the largest tax breaks for billionaires in American history,” said House Democratic Leader Hakeem Jeffries, as quoted by AFP. Democrats also warned of broader economic impacts, while investors reacted with concern, sending 10-year Treasury yields to their highest level since February.To placate conservatives, last-minute amendments accelerated Medicaid work requirements to start in December 2026 instead of 2029 and phased out Biden-era green energy tax breaks faster. Moderates secured a quadrupling of the state and local tax (SALT) deduction cap to $40,000 for households earning up to $500,000.Despite Trump’s warning that failing to pass the bill would be “the ultimate betrayal,” two Republicans opposed it, including Rep Thomas Massie, who called it “a debt bomb ticking.” Rep Andy Harris voted present.House Speaker Mike Johnson called the bill “transformational,” asserting, “To put it simply, this bill gets Americans back to winning again.” Still, the Senate is expected to make major revisions, with GOP leaders aiming to deliver a final version to Trump by July 4.
