On May 22, 2025, the U.S. House of Representatives narrowly approved President Donald Trump’s extensive tax and spending legislation, dubbed the «One Big Beautiful Bill,» with a 215-214 vote. This marks a significant legislative victory for President Trump in his second term.
The bill aims to extend and expand tax cuts from Trump’s first term, including making individual income tax reductions permanent and eliminating federal taxes on tips and overtime pay. It also introduces new incentives, such as a $10,000 tax break for purchasing American-made vehicles and $1,000 savings accounts for children born during Trump’s second term.
To offset the projected $3.3 trillion addition to the national debt over the next decade, the legislation proposes significant cuts to social programs. These include nearly $800 billion from Medicaid, reductions in food stamp funding, and the elimination of clean energy tax credits.
The bill also allocates substantial funds toward Republican priorities, such as $140 billion for border security, $50 billion to complete the southern border wall, and a $150 billion increase in defense spending, including a $20 billion nationwide missile defense system.
Critics argue that the legislation disproportionately benefits the wealthy while harming vulnerable populations. Democratic Minority Leader Hakeem Jeffries condemned the bill as harmful to vulnerable populations and beneficial to billionaires. Even some Republicans expressed concern over the potential political backlash and the bill’s impact on the national debt.
The bill now moves to the Senate, where Republicans hold a slim majority. Significant revisions are expected as the legislation faces further scrutiny.
