House Narrowly Passes Trump’s Sweeping Tax Bill, Sending It to Senate

The U.S. House of Representatives has narrowly approved President Donald Trump’s massive tax and spending bill, marking a major milestone for House Republicans and advancing a central pillar of Trump’s domestic agenda. The legislation, which passed by a razor-thin margin of 215 to 214, now heads to the Senate, where its future remains uncertain amid divisions even within the Republican Party.

Key Provisions and Political Dynamics

The bill is wide-ranging, stretching over 1,000 pages, and includes:

• An extension of the 2017 Trump tax cuts, ensuring current reduced tax rates and increased standard deductions remain in place for individuals and businesses.
• The elimination of the $7,500 federal electric vehicle (EV) tax credit by December 31, 2025, a move that has already triggered sharp declines in solar and EV-related stocks.
• Increased funding for military and border security, while financing these priorities through deep cuts to Medicaid, food assistance, education, and green energy programs.
• A higher cap on the state and local tax (SALT) deduction, raising it from $10,000 to $40,000 for taxpayers earning under $500,000, a concession aimed at winning over moderates from high-tax states.
• The removal of federal taxes on tipped income and overtime pay, fulfilling a Trump campaign promise, though experts note many tipped workers may not earn enough to benefit significantly.
• Stricter work requirements for Medicaid, with the implementation date moved up to December 31, 2026, to satisfy conservative holdouts.
• A $4 trillion increase in the federal debt ceiling, raising concerns among fiscal hawks about the nation’s long-term debt trajectory, which the Congressional Budget Office projects will rise by $3.8 trillion over the next decade.

Political Challenges and Next Steps

The bill’s passage followed weeks of intense negotiations, with Speaker Mike Johnson and President Trump personally intervening to bridge divides between moderate and far-right Republicans. All Democrats opposed the measure, having been excluded from the drafting process, and two Republicans voted against it, while one voted present.

The legislation now moves to the Senate, where Republicans hold a slim majority but remain divided over several provisions, especially the scale of spending cuts and the debt ceiling increase. Senate debate is expected to be contentious and could take weeks, with possible amendments before any final vote.

Other Major Developments

In a separate move, the Senate confirmed Charles Kushner, father of Jared Kushner, as ambassador to France, adding another notable development to a dramatic week in Washington.

Market and Public Reaction

The bill’s proposed repeal of EV and green energy incentives has rattled financial markets, with solar and electric vehicle stocks falling sharply following the House vote. Business groups and progressive organizations have voiced strong opposition to the spending cuts, warning of increased uninsured rates and reduced support for low-income Americans.

As the Senate prepares to take up the legislation, the nation is watching closely. Speaker Johnson called the bill “genuinely transformative and impactful for the nation,” while Democrats and advocacy groups vowed to fight its most controversial elements.