Trump's tax and spending bill passes Congress in major win for president

The Guardian

5 hours ago

The US House of Representatives passed Donald Trump's massive tax and spending bill on Thursday, handing the president the first major legislative victory of his second term and sending to his desk wide-ranging legislation expected to supercharge immigration enforcement and slash federal safety net programs.
The 218-214 vote came after weeks of wrangling over the measure that Trump demanded be ready for his signature by Friday, the Independence Day holiday. Written by his Republican allies in Congress and unanimously rejected by Democrats, the bill traveled an uncertain road to passage that saw multiple all-night votes in the House and Senate and negotiations that lasted until the final hours before passage. Ultimately, Republicans who had objected to its cost and contents folded, and the bill passed with just two GOP defections: Thomas Massie, a rightwing Kentucky lawmaker, and Brian Fitzpatrick, who represents a Pennsylvania district that voted for Kamala Harris in last year's election.
'We've waited long enough, some of us have literally been up for days now, but this day – this day – is a hugely important one in the history of our nation,' the Republican House speaker, Mike Johnson, said, just before voting began.
'With one big, beautiful bill, we are going to make this country stronger, safer and more prosperous than ever before, and every American is going to benefit from that.'
The legislation is expected to speed up and expand Immigration and Customs Enforcement deportations, and will likely make Trump's longstanding desire for a wall along the border with Mexico a reality.
It also strikes a blow against the US government's efforts to fight the climate crisis by phasing out tax incentives created under Joe Biden that were intended to spur investments in electric cars, wind and solar power and other green energy technologies.
The bill's centerpiece is a permanent extension of tax cuts made in 2017, during Trump's first term, as well as the creation of new, temporary exemptions for tips, overtime pay and car loan interest that the president promised voters during last year's campaign.
The government will lose trillions of dollars in revenue from those provisions, and to offset their costs, Republicans approved an array of cuts to Medicaid, the federal program providing health insurance coverage to poor and disabled Americans, and the Supplemental Nutrition Assistance Program (Snap).
Those changes are expected to cost millions of people their benefits, but the bill remains expensive, with the non-partisan Congressional Budget Office (CBO) saying it will add $3.3tn to the country's debt through 2034.
Democrats blasted the proposal as 'one big, ugly bill' that dismantles anti-poverty programs to fund tax breaks for the wealthy. Analyses have shown that high earners benefited most from Trump's tax policies.
The Democratic House minority leader, Hakeem Jeffries, made a last-ditch effort to halt the bill's passage by delivering a floor speech that lasted eight hours and 44 minutes, the longest ever.
'This is extraordinary. This assault on everyday Americans, assault on children, veterans, seniors, people with disabilities. It's incredible to me, all of this in this one, big, ugly bill,' Jeffries said.
'Ripping food out of the mouths of vulnerable Americans – that's extraordinary that that's what we're doing, extraordinary. And all of this is being done, this unprecedented assault on everyday Americans, is being unleashed on the American people, Mr Speaker, on the most vulnerable among us, all of this is being done to provide massive tax breaks to billionaire donors. Shame on this institution. If this bill passes, that's not America. We're better than this.'
Trump has described the bill as crucial to the success of his second term, and congressional Republicans made its passage their top priority. It was a tall task – the GOP won small majorities in both the House and Senate in last November's election, and could afford no more than three defections in either chamber.
The party's lawmakers broadly support Trump but were divided on a host of other issues. There were lawmakers who wanted big spending cuts, rapid phase-outs of green energy incentives and an expanded deduction that would mostly benefit taxpayers in Democratic-led states. Their demands butted against others who sought to moderate the bill, but over the course of weeks, Republicans leaders managed to forge a compromise.
The bill is only able to affect revenue, spending and the debt limit, under the rules of budget reconciliation that allowed the GOP to avoid a filibuster by Democrats in the Senate. Under Biden, Congress's then Democratic majority had used the same procedure to pass legislation to spur the economy's recovery from the Covid-19 pandemic and curb US carbon emissions.
Trump's bill allocates $45bn for Ice detention facilities, $14bn for deportation operations and billions of dollars more to hire 10,000 new agents by 2029. An additional $50bn will go towards the border wall and other fortifications.
Enrollees of Medicaid and Snap will face new work requirements, and states will be forced to share part of the cost of the latter program for the first time ever. The CBO estimates the bill's Medicaid changes could cost as many as 11.8 million people their healthcare, and the left-leaning Center on Budget and Policy Priorities forecasts about 8 million people, or one in five recipients, may lose their Snap benefits.
The legislation also forces changes to provider taxes, which states use to finance their share of Medicaid spending. That is expected to further increase the financial stress of hospitals in rural areas, and when the bill was in the Senate, a $50bn fund was added to support those facilities.
Some in the GOP were openly nervous about the cuts to safety net programs that their constituents rely on. Thom Tillis, a senator who represents swing state North Carolina, refused to support the bill for those reasons, leading Trump to announce he would support a primary challenger when he stands for re-election next year. Tillis then made public his plans to retire, a potential boost for Democrats' hopes of claiming his seat.
'It is inescapable this bill will betray the promise Donald Trump made,' Tillis said on the Senate floor.
'What do I tell 663,000 people in two years or three years when President Trump breaks his promise by pushing them off of Medicaid because the funding's not there any more, guys?'