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Key Points
  • Donald Trump’s signature tax and spending bill has passed the House of Representatives with a vote of 218 to 214.
  • The bill will fund Trump’s immigration crackdown and deliver tax breaks that will benefit the wealthiest Americans.
  • It will also cut health and food safety net programs and zero out dozens of green energy incentives.
United States President Donald Trump has secured a victory after his signature tax and spending bill cleared its final hurdle in the US Congress, as the Republican-controlled House of Representatives narrowly approved the massive bill and sent it to him to sign into law.
The bill, which passed with a vote of 218 to 214, will fund Trump’s immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign.
It also cuts health and food safety net programs and zeroes out dozens of green energy incentives.
It would add US$3.4 trillion ($5.2 trillion) to the nation’s US$36.2 trillion ($55.1 trillion) debt, according to the nonpartisan Congressional Budget Office (CBO).

Despite concerns over the 869-page bill’s price tag and its hit to healthcare programs, Republicans largely lined up in support, with only two of the House’s 220 Republicans voting against it.

The bill has already cleared the Republican-controlled Senate by the narrowest possible margin.
Republicans said the legislation will lower taxes for Americans across the income spectrum and spur economic growth.
Republican representative Virginia Foxx of North Carolina described the bill as bringing “historic tax relief for working families”. “Massive investment to secure our nation’s borders. Capturing generational savings. Slashing waste, fraud and abuse in government programs so that they may run more efficiently.”

Every Democrat in Congress voted against it, criticising the bill as a giveaway to the wealthy that would leave millions uninsured.
House Democratic leader Hakeem Jeffries said in an eight-hour, 46-minute speech that was the longest in the chamber’s history: “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.”
Trump kept up the pressure throughout, persuading and threatening Congress as he pressed them to send him the legislation by the 4 July Independence Day holiday.
“FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!” he wrote on social media.

A small group of opponents in the party finally fell into line after speaker Mike Johnson worked through the night to corral dissenters in the House of Representatives.

A large group of politicians cheers and raises their thumbs. A sign that says "One Big Beautiful Bill Act" is attached to a desk.

Speaker of the House Mike Johnson and House Republicans give a thumbs up during the enrolment ceremony of Donald Trump’s One Big Beautiful Bill Act after the bill passed in the US Capitol on 3 July 2025. Source: Getty / Bill Clark

Republicans raced to meet that deadline, working through last weekend and holding all-night debates in the House and the Senate.

The bill passed the Senate on Tuesday in a 51-50 decision, with vice president JD Vance casting the tie-breaking vote.

What’s in Trump’s ‘big, beautiful bill’?

According to the CBO, the bill would lower tax revenues by US$4.5 trillion ($6.8 trillion) over 10 years and cut spending by US$1.1 trillion ($1.7 trillion).
Those spending cuts largely come from Medicaid, the health program that covers 71 million low-income Americans.
Some estimates put the total number of recipients set to lose their insurance coverage under the bill at 17 million. Scores of rural hospitals are expected to close.
The bill would tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments — changes that would leave nearly 12 million people uninsured, according to the CBO.
Republicans added US$50 billion ($76 billion) for rural health providers to address concerns that those cutbacks would force them out of business.
Nonpartisan analysts have found that the wealthiest Americans would receive the biggest benefits from the bill, while lower-income people would effectively experience their incomes drop as the safety-net cuts would outweigh their tax cuts.

The increased debt load created by the bill would also effectively transfer money from younger to older generations, analysts say.

Ratings firm Moody’s downgraded US debt in May, citing the mounting debt, and some foreign investors say the bill is making US treasury bonds less attractive.
On the other side of the ledger, the bill staves off tax increases that were due to hit most Americans at the end of this year, when Trump’s 2017 individual and business tax cuts were due to expire.
Those cuts are now made permanent, while tax breaks for parents and businesses are expanded.

The bill also sets up new tax breaks for tipped income, overtime pay, seniors and auto loans, fulfilling Trump’s campaign promises.
The final version of the bill includes more substantial tax cuts and more aggressive healthcare cuts than the initial version that passed the House in May.
During deliberations in the Senate, Republicans also dropped a provision that would have banned state-level regulations on artificial intelligence, and a “retaliatory tax” on foreign investment that had spurred alarm on Wall Street.
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