House Narrowly Passes Trump’s “One Big, Beautiful Bill,” Advancing Sweeping Tax Cuts and Economic Agenda

WASHINGTON, D.C. — In a dramatic overnight session, the U.S. House of Representatives on Thursday narrowly passed President Donald Trump’s signature legislative package, the “One Big, Beautiful Bill Act” (H.R.1), marking a pivotal moment for his second-term economic agenda. The bill cleared the House with a razor-thin margin of 215 to 214, with two Republicans joining all Democrats in opposition and one voting present, following intense negotiations and last-minute amendments to win over GOP holdouts.

Key Provisions and Economic Impact

The legislation makes permanent the 2017 Trump tax cuts, increases the child tax credit, and enhances deductions for small businesses. It also raises the state and local tax (SALT) deduction cap from $10,000 to $40,000 starting in 2025, with a gradual phase-out for high earners, and introduces “Trump accounts”—tax-preferred savings vehicles for children under eight, seeded with a $1,000 federal contribution.

Other major provisions include:

• Abolishing taxes on overtime and tips, fulfilling Trump’s campaign promises.
• Imposing stricter work requirements for Medicaid recipients by December 2026, a move projected to remove millions from the program.
• Accelerating the phase-out of several clean energy tax credits by 2028.
• Raising the federal debt ceiling by $4 trillion.
• Allocating hundreds of billions in new defense spending and bolstering funding for border security and mass deportation initiatives.

Supporters argue the bill will serve as “rocket fuel” for the U.S. economy, with GOP leaders touting projections of a 5.2% GDP increase over four years and the creation or preservation of millions of jobs. Speaker Mike Johnson (R-La.) declared, “This bill gets Americans back to winning again,” emphasizing its focus on tax relief, job creation, and national security.

Opposition and Criticism

Democrats and some Republicans warn that the bill’s deep cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) could have severe consequences for low-income Americans, including children, seniors, and people with disabilities. Planned Parenthood has also raised alarms, stating that losing Medicaid funding could force the closure of up to one-third of its health centers, disproportionately affecting access to reproductive and preventive health care in several states.

Fiscal hawks and independent analysts caution that the legislation could add $3.8 trillion to the federal deficit over the next decade, with most of the spending cuts and savings delayed until later years. The bill’s passage came after weeks of intraparty wrangling, with Speaker Johnson facing resistance from both the House Freedom Caucus and moderate Republicans over Medicaid changes and the expanded SALT deduction.

Next Steps: Senate Showdown Ahead

The bill now heads to the Senate, where further negotiations and amendments are expected, as several Senate Republicans have already signaled opposition to key provisions. Congressional leaders aim to send a reconciled version to President Trump’s desk by July 4, but the path forward remains uncertain, with a final vote targeted for Memorial Day.

President Trump celebrated the House victory on social media, urging Senate Republicans to “get to work and send this to my desk as soon as possible”. The outcome of the Senate negotiations will determine the ultimate fate and shape of this landmark legislation.