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House Passes Contentious "One Big Beautiful Bill" with Major Tax Cuts, Spending Shifts; Senate Showdown AheadšŸ”„60

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Indep. Analysis based on open media fromnews.

House Passes "One Big Beautiful Bill" Amid Sharp Partisan Divide; Senate Debate Set to Begin

WASHINGTON, D.C. – The U.S. House of Representatives narrowly passed the "One Big Beautiful Bill Act" (OBBBA) on May 22, 2025, by a vote of 215–214–1, sending President Donald Trump’s signature legislative package to the Senate and igniting fierce debate over its sweeping tax, spending, and policy changes.

The legislation, central to Trump’s second-term agenda, seeks to permanently extend the 2017 Tax Cuts and Jobs Act, raise the state and local tax (SALT) deduction cap from $10,000 to $40,000, and introduce "Trump Accounts"—tax-advantaged savings accounts for children, seeded with $1,000 per newborn. The bill also allocates $46.5 billion for border security, boosts defense spending by $150 billion, and enacts deep cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) through stricter eligibility requirements and reduced funding.

According to the Congressional Budget Office, the bill would add between $2.4 trillion and $2.8 trillion to the federal deficit over the next decade and could result in 10.9 million Americans losing health insurance coverage. The Tax Foundation estimates the bill’s tax provisions would reduce federal tax revenue by $4 trillion between 2025 and 2034, with dynamic economic effects offsetting only about 22 percent of the cost. The package also raises the federal debt ceiling by $4 trillion and includes a ten-year limitation on state artificial intelligence legislation.

The bill’s passage followed late-night negotiations among House Republicans, with Speaker Mike Johnson securing support from holdouts by agreeing to the higher SALT cap for households earning less than $500,000. All House Democrats opposed the bill, joined by a handful of fiscally conservative Republicans concerned about deficit growth.

Prominent critics, including former Department of Government Efficiency head Elon Musk, have condemned the bill as fiscally irresponsible and warned of unsustainable debt levels. Senators Rand Paul and Mike Lee have echoed these concerns, signaling a contentious debate as the bill moves to the Senate, where Majority Leader John Thune aims for passage by July 4 but has acknowledged that revisions are likely.

Supporters, such as the National Association of Manufacturers, praise the bill’s pro-growth policies, while opponents argue it prioritizes tax cuts for the wealthy at the expense of working-class Americans and essential social programs. The Senate’s deliberations will determine the bill’s fate, with ongoing negotiations to reconcile internal Republican divisions and address mounting public scrutiny.