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Your Guide to What Trump’s Second Season Means Washington, Business and World
Donald Trump secured the passage of his flagship tax and expenditure laws after the House approved the bill, handing the US president a political victory six months later in his second term.
The House’s 218-214 vote on Thursday came after Hakeem Jeffries, a Democratic minority leader, opposed what he called the “ugh” law for a record eight hours and fourteen minutes of iconic acts of rebellion.
The House’s approval comes hours after the president cancelled the uprising among House Republicans who threatened to hold what Trump calls his “big and beautiful bill.”
“Are you tired of winning now?” House Speaker Mike Johnson said in a speech to the Chamber of Commerce just before the final vote.
“We have a government that once again takes responsibility and takes responsibility for the people,” Johnson added as he welcomed the bill’s tax cuts and money to strengthen the two border security, two of Trump’s campaign promises.
According to White House Press Secretary Karoline Leavitt, the president signed the bill into law at 5pm on Friday, reaching the voluntary deadline of July 4th.
The law extends enormous tax cuts from Trump’s first administration, partially paid by sudden cuts to Medicaid, the public health insurance system for low-income and disabled Americans, and other social welfare programs.
The bill also expands funds for military investment and repression of immigration while rolling back Biden-era tax credits for clean energy.
It is projected to add more than 3tn to US debt over the long term, causing concern among economists.
Democrat House leader Jeffries attacked what he called the “devastating consequence” of “this reckless Republican budget.”
The Senate approved the measure Tuesday after Vice President JD Vance voted for.
House approval begins the tumultuous second term of Trump. The president has deployed drastic tariffs and announced sweeping curbs on immigration, increasing enforcement.
In foreign policy, he launched airstrikes at Iran’s nuclear facilities, but struggled to achieve the peace deal he had promised in Gaza and Ukraine.
The tax bill has always been central to Trump and his top officials, primarily implementing many aspects of the 2024 campaign platform, including tips tax easing, overtime pay, and fossil fuel support.
But to secure a vote, the president had to twist the weapons of Republicans who were concerned about the impact of the bill on national debt and health provisions, and he violently attacked the House members who opposed it.
The president had to overcome a campaign by billionaire Elon Musk to stop the law.
Musk said he would put money into a campaign against Republicans who support laws that could add trillions of dollars to national debt.
The bill includes an increase of $500 million in federal debt cap. This is the largest one-off rise that limits the amount the government borrows.
In the end, all but two members of Trump’s party approved the law – Kentucky representative Thomas Massey and Pennsylvania’s Brian Fitzpatrick.
But all Democrats opposed the bill that said cuts in spending would leave millions of Americans without health insurance, while still benefiting the overwhelmingly wealthy.
Trump argues that the bill’s tax cuts will bring about a new era of high growth. However, the greatest short-term financial impact of legislation comes from preventing the automatic increase in income tax, which will take effect in 2026.
Since Trump took office in January, the US dollar index has steadily declined, reflecting the higher deficits of investors. However, U.S. stock prices have recovered since the April slump caused by Washington’s aggressive tariff plans.
The law already sets a political front ahead of next year’s midterm elections.
Republicans argue that while Democrats are attacking them to turn their backs on middle-class and low-income families, they have fulfilled Trump’s election promises.
Despite criticism from parts of the corporations, the US business groups have largely supported the law for tax extensions.
However, Clean Energy Groups are set to suffer subsidies cuts. Hospitals that serve low-income communities that rely on government healthcare will also be affected negatively.
Styled Bill’s Passage as an Independence Day gift to America, Trump is scheduled to hold a rally in Des Moines, the Midwest on Thursday, earning his first victory in the 2016 and 2024 presidential elections.
Additional Reports by Aiden Writer of New York
