Introduction to the Bill
House Republicans stayed up all night to pass their multitrillion-dollar tax breaks package, with Speaker Mike Johnson defying the skeptics and unifying his ranks to muscle President Donald Trump’s priority bill to approval Thursday. With last-minute concessions and stark warnings from Trump, the Republican holdouts largely dropped their opposition to salvage the “One Big Beautiful Bill” that’s central to the GOP agenda. The House launched debate before midnight and by sunrise the vote was called, 215-214, with Democrats staunchly opposed. It next goes to the Senate.
Key Features of the Bill
“To put it simply, this bill gets Americans back to winning again,” said Johnson (R-La.) just before the vote. Central to the package is the GOP’s commitment to extending some $4.5 trillion in tax breaks they engineered during Trump’s first term in 2017, while adding new ones he campaigned on during his 2024 campaign, including no taxes on tips, overtime pay, car loan interest and others. To make up for some of the lost tax revenue, the Republicans focused on changes to Medicaid and the food stamps program, largely by imposing work requirements on many of those receiving benefits.
Economic Impact
The nonpartisan Congressional Budget Office estimates 8.6 million fewer people would have health care coverage and 3 million less people a month would have SNAP food stamps benefits with the proposed changes. The CBO said the tax provisions would increase federal deficits by $3.8 trillion over the decade, while the changes to Medicaid, food stamps and other services would tally $1 trillion in reduced spending. The lowest-income households in the U.S. would see their resources drop, while the highest ones would see a boost, it said.
Democratic Opposition
House Democratic leader Hakeem Jeffries of New York read letters from Americans describing the way the program cuts would hurt them. “This is one big ugly bill,” he said. As the minority, without the votes to stop Trump’s package, Democrats instead offered up impassioned speeches and procedural moves to stall its advance. As soon as the House floor reopened for debate, the Democrats forced a vote to adjourn. It failed. Other Democrats called it a “big, bad bill” or a “big, broken promise.”
Republican Negotiations
Pulling the package together and pushing it to passage has been an enormous political lift for Johnson, with few votes to spare from his slim GOP majority whose rank-and-file Republicans have conflicting priorities of their own. Conservatives, particularly from the Freedom Caucus, held out for steeper spending cuts to defray costs piling onto the nation’s $36 trillion debt. At the same time, more moderate and centrist GOP lawmakers were wary of the changes to Medicaid that could result in lost health care for their constituents.
Final Amendments
Late in the night, GOP leaders unveiled a 42-page amendment with a number of revisions. The changes included speedier implementation of the Medicaid work requirements, which will begin in December 2026, rather than January 2029, and a faster roll back of the production tax credits for clean electricity projects, both sought by the conservatives. Also tucked into the final version were some unexpected additions — including a $12 billion fund for the Department of Homeland Security to reimburse states that help federal officials with deportations and border security.
Conclusion
The passage of the bill marks a significant victory for President Trump and the Republican Party, but its impact on the economy and American citizens remains to be seen. With the bill now heading to the Senate, it is likely to face further debate and negotiation before it becomes law.
FAQs
Q: What is the main purpose of the bill?
A: The main purpose of the bill is to extend and expand tax breaks, as well as make changes to Medicaid and food stamps programs.
Q: How will the bill affect the economy?
A: The Congressional Budget Office estimates that the bill will increase federal deficits by $3.8 trillion over the decade and reduce spending on Medicaid, food stamps, and other services by $1 trillion.
Q: What are the work requirements for Medicaid and food stamps?
A: Able-bodied adults without dependents will need to fulfill 80 hours a month on a job or in other community activities to receive Medicaid and food stamps.
Q: How will the bill affect different income levels?
A: The lowest-income households in the U.S. would see their resources drop, while the highest ones would see a boost.
Q: What is the next step for the bill?
A: The bill will now head to the Senate for further debate and negotiation before it becomes law.
