Washington: In a hard-fought legislative victory for President Donald Trump and his domestic agenda, the U.S. Congress has passed a sprawling tax and spending bill, sending it to the president’s desk for signature just ahead of his self-imposed July 4th deadline.
The House of Representatives approved the bill by a narrow vote of 218 to 214 on Thursday, July 3, 2025, following its approval in the Senate on Tuesday by a single vote, with Vice President JD Vance casting the tie-breaking vote.
The legislation, spanning nearly 900 pages, is a comprehensive package that includes permanent extensions of Trump’s 2017 tax cuts, along with new tax deductions for tips, overtime, and auto loans. It also features significant spending allocations for border security, including funds for the U.S.-Mexico border wall, expanded migrant detention facilities, and an increase in Immigration and Customs Enforcement (ICE) agents. Additionally, the bill includes billions for the Pentagon for shipbuilding, munitions, and the “Golden Dome” missile defense system.
To offset some of these costs, the bill implements substantial cuts to social safety net programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP), imposing stricter eligibility requirements and new work mandates for some recipients. It also targets green energy incentives, phasing out tax credits for electric vehicles and other related programs.
The Congressional Budget Office (CBO) estimates that the bill could add approximately $3.3 trillion to federal deficits over the next decade and lead to millions losing health coverage, a forecast that the White House disputes.
Speaking to reporters, President Trump hailed the bill as transformative, stating it would “turn this country into a rocket ship.” He is expected to sign the bill into law on Friday, July 4, 2025.
