U.S. President Donald Trump’s proposed tax and spending bill narrowly cleared the House of Representatives on Thursday, following intense negotiations among Republican lawmakers who control the chamber.
The legislation passed by a slim 215–214 vote, with one lawmaker abstaining. All Democratic representatives voted against the measure.
The bill now heads to the Senate, where further changes are expected before a final vote, likely by August.
The House Rules Committee had approved the sweeping bill late Wednesday night after an almost 22-hour deliberation, according to media reports.
The package includes an extension of the 2017 tax cuts and introduces tax relief for tipped wages and auto loans. It also increases funding for defense and border enforcement, while making cuts to food and healthcare assistance programs for low-income Americans.
There had been uncertainty over whether House Speaker Mike Johnson could rally enough GOP support amid internal party disputes. Some Republicans insisted on steeper spending reductions to counterbalance Trump’s proposed tax cuts. Johnson, however, expressed confidence that he would secure the necessary votes to overcome united Democratic resistance.
According to Wolfe Research, most of the GOP holdouts’ demands were met, including substantial cuts to federal incentives for renewable energy investments.
Critics have voiced alarm over the bill’s potential to increase the national debt and slash social services. Independent estimates suggest it could add $3 trillion to $5 trillion to the U.S. debt—which currently stands at $36.2 trillion—over the next decade.
The Financial Times reported that the International Monetary Fund has urged Washington to tackle its widening budget deficit and soaring debt levels.
Meanwhile, Moody’s recently downgraded the U.S. credit rating, citing Washington’s ongoing failure to rein in government deficits and mounting interest obligations.
