President Donald Trump’s massive tax and spending plan, dubbed the “One Big Beautiful Bill,” has cleared its first major hurdle: the U.S. House of Representatives.
Passed by the slimmest of margins—215 to 214—the bill now heads to the Senate, where it’s expected to face heated debate and potential amendments.
So, what’s in this bill, and why is it making headlines?
At its core, the legislation is designed to extend the tax cuts passed during Trump’s first term, eliminate taxes on tips, and significantly boost funding for defense and border security. Trump and House Speaker Mike Johnson have championed it as a once-in-a-generation shift in American tax and budget policy.
But the bill doesn’t stop there. It also includes cuts to government health programs like Medicaid, implements work requirements for benefit recipients sooner than initially proposed, and alters tax credit rules for clean energy investments. In short, it touches almost every corner of the U.S. tax and spending landscape.
Critics, especially Democrats, have dubbed it the “GOP Tax Scam.” Their key concerns? The bill is projected to add $2.3 trillion to the national debt over the next decade, according to the nonpartisan Congressional Budget Office. The deficit for just the next fiscal year could jump by another $600 billion.
For lower-income Americans, the impact could be immediate. Democrats warn of hospital closures, reduced food assistance, and rising health costs. House Democratic Leader Hakeem Jeffries accused Republicans of pushing through “deeply unpopular” changes under the radar.
Trump, on the other hand, celebrated the bill’s passage in the House, calling it “the most significant piece of legislation in U.S. history.” He emphasized benefits like tax relief, pay raises for ICE and border patrol, and a renewed commitment to military strength.
Some of the key highlights of the bill include:
- Extending 2017 tax cuts that were set to expire
- Eliminating federal taxes on tips, a major move aimed at service industry workers
- Increasing defense spending
- Boosting border security and immigration enforcement
- Accelerating Medicaid work requirements to begin in 2026
- Reworking SALT (state and local tax) deduction caps, raising the limit from $10,000 to $40,000 for certain households
Yet even with Trump’s vocal backing, the bill nearly didn’t pass. Two Republican lawmakers missed the vote—one reportedly fell asleep, the other forgot to submit his card—which could have flipped the outcome.
As the bill heads to the Senate, several Republican senators have already indicated they’ll seek changes, particularly around Medicaid cuts, SALT deductions, and food assistance program funding. Budget hawks and moderates alike are weighing the bill’s potential to reshape federal finances—and its political consequences.
For now, Trump’s grip on the GOP appears as strong as ever. The bill’s House passage, despite internal party disputes, shows just how far Republican lawmakers are willing to go to support his agenda heading into the 2026 midterms.
But whether this bill becomes law—and in what form—will depend on what happens next in the Senate. One thing is certain: the debate over the Trump tax bill is just getting started.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
