Sweeping Legislation Secures Tax Cuts, Border Funding, and Program Reductions, Set for Trump’s Signature on Independence Day

Washington, D.C. - In a dramatic and narrowly won victory, the U.S. House of Representatives voted 218-214 on July 3, 2025, to pass the "One Big Beautiful Bill Act" (H.R. 1), a sweeping tax and spending package championed by President Donald Trump. The legislation, which cleared the Senate on July 1 by a 50-50 vote with Vice President J.D. Vance casting the tiebreaker, marks a significant legislative milestone for Trump’s second term. The bill now heads to the White House, where Trump is expected to sign it into law during a ceremonial event on July 4, aligning with Independence Day celebration.

The "One Big Beautiful Bill," as dubbed by Trump, extends key provisions of the 2017 Tax Cuts and Jobs Act, including tax breaks for families, small businesses, and seniors, while introducing new measures such as no taxes on tips and a $12,500 tax deduction for overtime pay for those earning under $150,000. It also increases funding for border security, defense, and energy production, partially offset by significant cuts to Medicaid and food stamp programs. The Congressional Budget Office estimates the Senate version will add $3.3 trillion to the national debt from 2025 to 2034.

House Speaker Mike Johnson (R-LA) hailed the passage as a fulfillment of Trump’s agenda, stating, “This bill is President Trump’s vision, and we are making it law.” However, the bill faced opposition from Democrats and some Republicans, with Reps. Thomas Massie (R-KY) and Brian Fitzpatrick (R-PA) joining Democrats in voting against it. House Minority Leader Hakeem Jeffries (D-NY) delayed the vote for over four hours using the House’s “magic minute” rule, criticizing the bill as a “giveaway to the wealthy” that slashes safety net programs. A Yale Budget Lab analysis found the bill could reduce income for the bottom 20% of households by 2.9% annually, while boosting incomes for wealthier households.

The bill’s passage followed intense negotiations, with Trump personally working the phones for nearly 20 hours to secure reluctant House Republican votes. The White House employed a “carrot-and-stick” approach, promising executive actions to complement the legislation and threatening primary challenges against dissenters. The administration plans a victory tour to tout the bill’s benefits, with Trump celebrating in a Des Moines, Iowa, speech on July 3, calling it a step toward “the Golden Age of America.”

Critics, including Senate Democrats and some conservative Republicans, expressed concerns about the bill’s impact on the national debt and low-income Americans. All New England senators, including Republican Susan Collins of Maine, voted against the Senate version. On X, sentiments were mixed, with some users praising the tax cuts as “pro-family and pro-worker,” while others decried it as a “betrayal” of fiscal responsibility.

As the nation awaits Trump’s signature, the bill’s passage underscores deep partisan divides and sets the stage for further debates on fiscal policy in 2025. The White House emphasized that tax cuts, including those for tips and Social Security, will apply retroactively to January 1, 2025, impacting tax filings next spring.