House Republicans have successfully pushed through a significant legislative package that aligns with Donald Trump’s fiscal agenda, though it comes with hefty additions to the national debt and could jeopardize federal safety net benefits for numerous Americans.
The narrowly passed bill, with a vote count of 215 for and 214 against, highlights the fragility of the Republican majority and resolves weeks of internal party negotiations in a chamber they hold by just a three-seat margin.
The legislation fulfills several promises from Trump’s campaign, such as continuing tax cuts for both individuals and businesses, phasing out clean energy incentives introduced during Joe Biden’s presidency, and reducing taxes on tips, overtime, and car loan interest. It offers a $1,000 incentive to parents establishing “Trump accounts” for their children and expands tax deductions for senior citizens—though only during Trump’s term.
Furthermore, the bill allocates funds for the construction of a border wall with Mexico and increases resources for the mass deportation of undocumented migrants. To compensate for these expenditures, Republicans have opted to slash funding and introduce stricter work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), sparking concerns among analysts that this could deny benefits to millions of needy Americans.
“This is arguably the most significant piece of Legislation that will ever be signed in the History of our Country!” wrote Trump on his Truth Social platform. “Now, it’s time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE! There is no time to waste.”
Despite its spending cuts, the legislation is predicted to increase the deficit by roughly $2.3 trillion, as estimated by the impartial Congressional Budget Office. This development comes on the heels of a downgrade by credit agency Moody’s, which removed the United States’ esteemed triple-A credit rating, citing the nation’s swelling debt levels.
