In a razor-thin 215-214 vote, the U.S. House of Representatives has passed a massive tax and spending bill championed by former President Donald Trump, setting the stage for a Senate showdown and stirring fears over the country’s rising debt. The bill, spanning over 1,100 pages, touches nearly every aspect of American life—from taxes and immigration to healthcare and green energy.
Dubbed the “big, beautiful bill” by Trump himself, the legislation promises sweeping changes that fulfill many of his 2024 campaign promises. These include extending Trump-era tax cuts for individuals and corporations, introducing tax breaks for tips and car loans, and drastically increasing spending on border security and the military. However, the Congressional Budget Office (CBO) warns the bill would add a staggering $3.8 trillion to the national debt over the next decade—on top of the current $36.2 trillion.
Despite the bill’s significance, it barely passed. All Democrats opposed it, joined by two Republicans. A third GOP member abstained by voting “present,” and another reportedly missed the vote because he fell asleep.
“This is arguably the most significant piece of legislation that will ever be signed in the history of our country,” Trump proclaimed on social media. Meanwhile, House Speaker Mike Johnson called it “generational, truly nation-shaping legislation.”
But critics, including many investors, aren’t convinced. Moody’s recently downgraded the U.S. credit rating due to ballooning debt. Interest payments alone accounted for one in every eight federal dollars spent last year—and that ratio is expected to grow even more in the next decade.
Economists and politicians from both parties are worried the bill accelerates the country’s fiscal decline. Representative Thomas Massie, one of the two Republicans who voted against it, put it bluntly: “We’re not rearranging deck chairs on the Titanic tonight. We’re putting coal in the boiler and setting a course for the iceberg.”
In terms of policy, the bill would:
Cut green-energy incentives introduced by the Biden administration
Tighten eligibility for food and health programs like Medicaid
Fund a major immigration crackdown with plans to deport up to 1 million people annually
Soften regulations on gun silencers
Rename children’s savings plans to “Trump Accounts”
Increase the state and local tax deduction cap to $40,000, mostly benefiting the wealthy
Critics say it favors the rich while squeezing the poor. The CBO found it would reduce income for the poorest 10% of households and increase it for the top 10%.
Democratic Rep. Jim McGovern slammed it as a “scam,” saying, “This is a tax scam designed to steal from you, the American people, and give to Trump’s millionaire and billionaire friends.”
Even with the House approval, the bill faces significant hurdles in the Senate, where debate and revisions are expected to last weeks.
