US House Passes Donald Trump's 'One Big, Beautiful Bill' Despite Democratic Opposition, Heads To President’s Desk

Washington: The US House of Representatives has passed President Donald Trump's multi-trillion-dollar tax and spending bill, clearing the final hurdle just in time for the President's self-imposed July 4th deadline. The bill was approved with a narrow margin, following intense pressure from the White House and House Speaker Mike Johnson, who managed to flip key GOP holdouts. The passing of the $4.5 trillion tax breaks and spending cuts bill to final congressional passage is considered a huge legislative victory for Donald Trump. 

The bill, which was approved with a narrow margin of 218-214 votes, will now be sent to the President for his signature. The outcome marked a major milestone for Trump's second-term agenda, with Republican control of Congress playing a crucial role in its passage. 

The bill prioritises $4.5 trillion in tax breaks enacted in 2017 during Trump's first term, which would expire if Congress failed to act. Additionally, the bill includes new tax breaks, such as allowing workers to deduct tips and overtime pay, and a $6000 deduction for most older adults earning less than $75,000 a year. The package also invests $350 billion in national security and Trump's deportation agenda, including the development of the "Golden Dome" defensive system over the US.

To offset the lost tax revenue, the package includes $1.2 trillion in cutbacks to Medicaid health care and food stamps. These cuts would be achieved by imposing new work requirements on beneficiaries, including some parents and older people. The Congressional Budget Office estimates that the package will add $3.3 trillion to the deficit over the decade and leave 11.8 million more people without health coverage.

Bill's Key Provisions

The bill promises deep tax cuts, massive national security spending, and historic reductions to the federal safety net. It includes:

• Tax Cuts: Extends the 2017 tax cuts, providing relief to individuals and corporations
• National Security Spending: Boosts funding for the military and border enforcement
• Medicaid and Food Stamp Cuts: Imposes new work requirements for Medicaid recipients and expands existing work requirements in the Supplemental Nutrition Assistance Program (SNAP)

Controversy And Opposition

Despite the bill's passage, it has drawn backlash from Republican fiscal hawks, who are concerned about the projected $3.4 trillion addition to the national debt over the next decade. The Democrats have also opposed the bill, criticising its content and the process used to pass it. House Minority Leader Hakeem Jeffries used his ‘magic minute’ rule to speak for hours, underscoring Democratic opposition.

The bill now heads to the President's desk for signing. Trump has hailed the bill as a major victory, saying it will usher in a new "Golden Age" for the country.

The bill's impact on the economy and society is a subject of debate. Supporters argue that it will boost economic growth and provide relief to individuals and businesses. Critics, however, warn that it will exacerbate income inequality and increase the national debt.

Democratic Opposition, Republican Support

The Democrats unified against the bill, calling it a "tax giveaway to the rich" paid for on the backs of the working class and the most vulnerable in society. Democratic leader Hakeem Jeffries of New York delayed voting by holding the floor for over eight hours with a record-breaking speech against the bill. "We're better than this," Jeffries said, describing the bill as “one big ugly bill”.

House Speaker Mike Johnson said, "With one big beautiful bill, we are going to make this country stronger, safer, and more prosperous than ever before." Rep. Jodey Arrington, R-Texas, the House Budget Committee chairman, said, "This was a generational opportunity to deliver the most comprehensive and consequential set of conservative reforms in modern history, and that's exactly what we're doing."

The Tax Policy Centre projected that the bill would result in a $150 tax break for the lowest quintile of Americans, a $1750 tax cut for the middle quintile, and a $10,950 tax cut for the top quintile. However, the Democrats warned that cuts to Medicaid and food stamps would have devastating consequences for vulnerable populations.

Nevertheless, the bill's passage in the House is considered a major step, but it still needs to be reconciled with the Senate version. The final bill will likely be shaped by negotiations between the two chambers.