The U.S. House of Representatives on Thursday narrowly approved a major tax and spending bill backed by President Donald Trump, sending it to his desk for signing.
The bill passed in a 218–214 vote, with only two Republicans opposing it. It had already cleared the Senate earlier this week with Vice President JD Vance casting the tiebreaking vote.
The legislation extends Trump’s 2017 tax cuts and adds new breaks for individuals and businesses, while also cutting health and food assistance programs. According to the Congressional Budget Office, it will add $3.4 trillion to the national debt, now at $36.2 trillion.
The White House said Trump will sign it into law at 5 p.m. ET (2100 GMT) on Friday, the July 4 Independence Day holiday.
Republican leaders say the bill will reduce taxes across income levels and support economic growth. It includes permanent extensions of tax cuts set to expire this year and introduces new tax benefits for tipped income, overtime pay, seniors, and auto loans.
The bill also raises the debt ceiling by $5 trillion, avoiding a short-term default risk. However, some investors are concerned the added debt could lead to higher long-term borrowing costs and reduce the bill’s economic impact.
Moody’s downgraded U.S. debt in May, citing rising fiscal pressure.
The CBO estimates the bill will reduce tax revenue by $4.5 trillion over the next 10 years, while cutting spending by $1.1 trillion. Much of the spending cuts come from Medicaid, which covers 71 million low-income Americans.
The bill tightens eligibility rules, adds work requirements, and changes federal payment formulas. These changes could leave nearly 12 million people without health coverage.
To address concerns from rural lawmakers, Republicans added $50 billion in support for rural health providers. Still, nonpartisan estimates show that the wealthiest Americans will benefit most from the bill, while lower-income people may see overall income declines due to the safety-net reductions.
Democrats unanimously opposed the bill, calling it a tax giveaway to the rich at the expense of working families. House Democratic Leader Hakeem Jeffries delivered a record-length speech criticizing the legislation, saying it prioritizes billionaires over everyday Americans.
Trump had pushed Republicans to pass the bill by the July 4 deadline, using public pressure to influence lawmakers. Though several Republicans initially threatened to vote no, only two did so in the final vote.
The final version of the bill includes more extensive tax cuts and deeper health spending cuts than the earlier House version passed in May. Senate Republicans also removed a proposed ban on state-level AI rules and a tax on foreign investments that had raised concerns on Wall Street.
The bill is expected to be a key issue in the 2026 midterm elections. While Republicans say it will boost the economy ahead of the vote, many of the spending cuts will not take effect until after the election.
