Donald Trump’s signature tax and spending bill, dubbed the “One Big Beautiful Bill,” was successfully passed by the US House of Representatives early Thursday and subsequently signed into law by President Trump on Friday, July 4, 2025. This marks a significant legislative victory for the president in the early months of his second term, despite initial Republican rebel threats that had left the bill in limbo.
On Wednesday night and into Thursday morning, House Speaker Mike Johnson had scrambled to secure enough votes, keeping a key procedural vote open for over two hours as lieutenants huddled with a group of Republican rebels. The bill’s path through Congress had been contentious, having narrowly squeezed through the Senate on Tuesday by a solitary vote, and then returning to the lower chamber for a final sign-off on the Senate’s revisions.
Despite the fierce opposition from all Democrats and some Republican fiscal hawks and moderates, the House ultimately voted 218-214 to approve the measure, sending it to the president’s desk just ahead of his self-imposed July 4 deadline. Only two Republicans, Representatives Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania, joined all Democrats in opposing the bill.
The sprawling legislation fulfills many of Trump’s campaign promises. It significantly boosts military spending and allocates substantial funds for a mass migrant deportation drive. A central feature is the commitment of $4.5 trillion to extend his first-term tax relief, which was set to expire at the end of 2025. New tax breaks are also included, such as allowing workers to deduct tips and overtime pay, and a $6,000 deduction for most older adults earning less than $75,000 annually. The child tax credit will also permanently increase to $2,200.
However, the bill is projected to add an extra $3.4 trillion over a decade to the country’s fast-growing deficits. It also implements the largest cuts to the Medicaid health insurance program since its 1960s launch, with critics estimating nearly 12 million people could lose coverage due to new work requirements and stricter eligibility checks. Additionally, the bill includes a major rollback of green energy tax credits and aims to drastically expand immigration enforcement.
While moderates in the House expressed anxiety that the cuts to social safety nets would damage their reelection prospects, fiscal hawks chafed over what they considered insufficient savings. Nevertheless, through intense negotiation and direct engagement from President Trump, the Republican leadership managed to secure the necessary votes for passage, marking a significant win for the administration.
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