Washington, July 4, 2025 — In a narrow 218–214 vote, the U.S. House of Representatives on Thursday approved a sweeping legislative package of tax cuts and spending reductions, cementing one of President Donald Trump’s key second-term promises. The measure, known as the Reconciliation Bill, had already passed the Senate with Vice President J.D. Vance casting the tie-breaking vote. Trump is expected to sign it into law during the White House’s Fourth of July picnic.

What’s in the legislation?

The bill aims to extend the 2017 tax cuts, uphold tax exemptions promised during Trump’s 2024 campaign, and significantly boost funding for immigration enforcement and national security. At the same time, it includes deep cuts to core social welfare programs, including:

• More than $930 billion in reductions to Medicaid and food assistance programs.
• The repeal of renewable energy tax incentives introduced during the Biden administration.
• The rollback of Medicaid expansion enacted under President Barack Obama.
• $45 billion allocated to build and maintain migrant detention centers.

According to the Congressional Budget Office, the plan is projected to leave more than 11 million people without health coverage and increase the federal deficit by $3.3 trillion over the next decade.

Political and public response

While President Trump hailed the bill as a landmark achievement that would “turn the U.S. economy into a rocket ship,” Democrats slammed it as a “legislative crime scene” that threatens the health, stability, and economic well-being of millions of Americans.

House Democratic Leader Hakeem Jeffries called the legislation “a direct attack on the country’s most vulnerable populations” and said it would be a central issue in Democrats' 2026 midterm election campaigns.

Trump, meanwhile, celebrated the legislative win at a rally in Iowa on the eve of Independence Day, surrounded by supporters and American flags, marking the kickoff of the country’s 250th anniversary celebrations.

The bill’s passage in the Senate came by the slimmest of margins and highlighted fractures within the Republican Party. Senator Thom Tillis of North Carolina announced he would not seek reelection after clashing with Trump over the bill. Conservative Rep. Tom Massie also opposed the legislation and has since become a target of Trump’s political machine.

Democrats have already begun organizing mobilizations, voter registration drives, and nationwide protests to draw attention to the bill’s most controversial provisions, particularly its impact on low-income families.

A recent Washington Post/Ipsos poll found that while most Americans support certain aspects of the plan—such as increasing the child tax credit—they overwhelmingly oppose cuts to food assistance and higher spending on military and immigration enforcement. Sixty percent of respondents said they found it “unacceptable” that the bill is expected to add more than $3 trillion to the national debt over the next ten years.