Trump’s Sweeping Tax-Cut and Spending Bill Passes Congress

Every Democrat in Congress voted against the bill, denouncing it as a windfall for the wealthy that would leave millions of Americans without health insurance.

“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,” said House Democratic Leader Hakeem Jeffries, who delivered an eight-hour, 46-minute speech—the longest in House history.

President Trump exerted constant pressure on lawmakers in the lead-up to the vote, urging them to pass the bill before the July 4 Independence Day holiday.

“FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!” he wrote on social media.

Determined to meet the self-imposed deadline, Republicans pushed through a marathon legislative weekend, holding overnight sessions in both chambers. The Senate approved the bill on Tuesday in a 51-50 vote, with Vice President JD Vance casting the tie-breaking vote.

According to the Congressional Budget Office (CBO), the legislation would reduce tax revenue by $4.5 trillion over the next decade while cutting federal spending by $1.1 trillion.

Much of those cuts would come from Medicaid, the program that provides health coverage for 71 million low-income Americans. The bill imposes stricter eligibility requirements, a work mandate, and eliminates a state funding loophole — changes that would leave nearly 12 million people without coverage, according to the CBO. To address concerns from rural lawmakers, Republicans included $50 billion in additional funding for rural health providers.

Nonpartisan experts found that the bill would benefit the wealthiest Americans most, while many lower-income households would see a net drop in income as tax cuts are offset by reduced government support.

Analysts also warned that the legislation’s effect on the national debt—projected to rise by trillions—would effectively shift financial burdens from older generations to younger ones. Ratings agency Moody’s downgraded U.S. debt in May, citing fiscal strain, while some foreign investors have expressed growing hesitation toward U.S. Treasury bonds.

At the same time, the bill eliminates looming tax increases by making the 2017 Trump tax cuts permanent. It expands benefits for parents and businesses, and introduces new tax breaks for overtime pay, tipped income, seniors, and auto loans—measures tied to Trump’s 2024 campaign pledges.

Compared to the earlier version passed by the House in May, the final legislation includes deeper tax reductions and more sweeping cuts to healthcare programs.

During Senate negotiations, Republicans also removed two controversial provisions: one that would have blocked states from regulating artificial intelligence, and another that imposed a “retaliatory tax” on foreign investment, which had triggered concerns from Wall Street.