US House Narrowly Approves Trump’s Massive Tax-Cut bill, Paves Way for Senate Showdown

WASHINGTON, May 22 — In a razor-thin vote that exposed deep divisions in Congress, the U.S. House of Representatives passed a sweeping tax and spending bill on Thursday that advances much of President Donald Trump’s economic vision. The bill, which was narrowly approved with a 215-214 vote, is now headed to the Senate for further review.

This comprehensive legislation includes broad tax reductions, significant increases in military and border enforcement funding, and cuts to various social programs. While supporters hail it as a major step toward revitalizing the economy and restoring law and order, critics warn it could inflate the national debt and deepen inequality.

The bill fulfills several of Trump’s campaign promises, including tax breaks for tipped workers and buyers of automobiles, while undoing many environmental incentives enacted under the previous administration. The nonpartisan Congressional Budget Office estimates the measure will add approximately $3.8 trillion to the national debt over the next ten years, pushing the total beyond $40 trillion.

Trump Celebrates Victory, House Divided

President Trump celebrated the bill’s passage with characteristic enthusiasm. “This may very well be the most important law ever to be signed in our nation’s history!” he wrote on his social media platform.

Despite Trump’s praise, the bill passed the House only after intense debate that stretched through two consecutive nights. All Democrats and two Republicans voted against it, while one Republican voted “present.” Another GOP lawmaker missed the vote entirely due to reportedly falling asleep.

With a slim 220-212 Republican majority in the House, Speaker Mike Johnson had little margin for error. He worked tirelessly to unify his caucus, making several amendments to win over both conservative hardliners and moderate Republicans.

A “Big, Beautiful Bill” Heads to Senate

Trump’s self-described “big, beautiful bill” will now be taken up by the Senate, where it faces additional scrutiny and likely revisions. Though also controlled by Republicans, the Senate is expected to alter key aspects of the bill during upcoming debates.

Spanning over 1,100 pages, the legislation would permanently extend individual and corporate tax cuts introduced during Trump’s first term in 2017. It also seeks to reverse numerous clean-energy tax credits championed by the previous Democratic administration. Additional provisions tighten eligibility for food stamps and Medicaid and increase funding for immigration enforcement, including expanding the number of border patrol agents and enabling the deportation of up to one million people annually. The bill also relaxes regulations on firearm silencers.

Debt Concerns Mount

The legislation comes at a time of growing concern about America’s fiscal health. With the federal debt now standing at over $36 trillion—124% of the country’s GDP—economic analysts and lawmakers from both parties have expressed alarm. Just last week, a leading credit rating agency lowered the United States’ credit score, pointing to poor fiscal management and inadequate budgeting practices.

The country’s budget deficit has been a persistent problem for decades. Every year this century, the federal government has spent more than it has taken in, regardless of which party was in power. According to projections, interest payments on the national debt are expected to consume one out of every six dollars in federal spending over the next decade—surpassing even defense expenditures.

Investor Anxiety and Market Reaction

Financial markets showed signs of unease in response to the bill’s passage. Major U.S. stock indexes opened mixed on Thursday. Shares in solar energy firms, which benefited from green subsidies now facing elimination, took a particular hit. Meanwhile, long-term Treasury yields surged to their highest levels since late 2023, reflecting investors’ concerns over rising government borrowing and inflation.

Republican Representative Thomas Massie of Kentucky, a vocal opponent of the bill, warned it could lead to a looming financial crisis. He remarked that instead of making minor adjustments, the legislation was fueling a dangerous path forward—comparing it to powering a ship straight toward disaster.

Debt Ceiling Tied to Bill

Despite the opposition, Republican leaders framed the bill as necessary not only to deliver on Trump’s promises but also to address the looming threat of a U.S. default. The bill includes a provision to raise the federal debt ceiling by $4 trillion, which would prevent a potential fiscal crisis this summer.

Many Republicans also argued that failure to pass the bill would lead to higher taxes for average Americans, as the 2017 tax cuts are set to expire at the end of the year.

Concessions and Political Bargains

To secure support, Speaker Johnson made several last-minute concessions. He agreed to implement stricter work requirements for Medicaid recipients by 2026—two years earlier than initially proposed—a move that the CBO estimates could remove several million people from the program. The bill also penalizes states that opt to expand Medicaid in the future.

To appease Republicans from high-tax states, Johnson included an expanded deduction for state and local taxes (SALT), increasing the cap to $40,000. This change is expected to primarily benefit wealthier households.

In a nod to branding, the bill renames new tax-free savings accounts for children as “Trump Accounts,” a move seen by many as a political stunt aimed at solidifying Trump’s legacy.

Fierce Opposition from Democrats

Democrats slammed the bill, claiming it benefits the wealthy at the expense of the poor and working class. According to CBO estimates, the poorest 10% of Americans would see their incomes fall, while the richest 10% would gain significantly.

Representative Jim McGovern, a leading Democrat in the House, condemned the bill as deceptive, claiming it was crafted to take advantage of everyday Americans while rewarding the wealthy allies of former President Trump.

As the bill heads to the Senate, its future remains uncertain. While Republicans are hopeful for swift approval, opponents are gearing up for a tough fight over the policy’s fairness, fiscal implications, and long-term impact on American society.