Donald Trump’s ‘big beautiful’ tax cuts bill passes final hurdle in US Congress
Donald Trump’s ‘big beautiful bill’ has been passed by the US congress, sending it to the president to sign into law.
The controversial tax breaks and spending cuts package cleared its final hurdle as the Republican-controlled House of Representatives narrowly approved the bill with a 218-214 vote.
The bill delivers tax breaks Mr Trump promised in his 2024 election campaign, cuts health and food safety programmes, and zeroes out dozens of green energy incentives.
According to the nonpartisan Congressional Budget Office (CBO), it will lower tax revenues by $4.5trn over 10 years and add $3.4trn to the US’s $36.2trn debt.
But despite concerns over the 869-page bill’s price tag – and its hit to healthcare programmes – Republicans largely lined up in support, with just two rebelling on the vote.
House Speaker Mike Johnson is congratulated following the vote. Pic: Reuters
Every Democrat in Congress voted against the bill, blasting it as a giveaway to the wealthy that will leave millions of Americans uninsured.
House Speaker Mike Johnson made the Republicans’ closing argument for the bill, telling Congress: “For everyday Americans, this means real, positive change that they can feel.”
Earlier, the House’s Democratic leader Hakeem Jeffries gave a record-breaking eight-hour and 44-minute speech against it.
“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,” he said.
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The bill’s spending cuts largely target Medicaid, the health programme that covers 71 million Americans on low incomes.
It will tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments.
The changes could leave nearly 12 million people without health insurance, according to the CBO.
On the other side of the ledger, it will stave off tax increases that were due to hit most Americans at the end of the year, when tax cuts from President Trump’s first term were due to expire.
It also sets up new tax breaks for overtime pay, seniors and tipped income.
Read more:
Why the bill sparked an ugly debate
Kremlin shares details of Putin-Trump call
The bill narrowly passed the US Senate on Tuesday after vice president JD Vance cast the deciding vote to break a 50-50 tie.
Mr Trump will sign it into law on Friday at 5pm local time (10pm in the UK), the White House said.
Elon Musk says he has created a new political party – the America Party –
after asking his followers if he should do so in an online poll.
It follows his public falling out with Republican President Donald Trump.
On Friday, the billionaire had asked his followers on X whether a new US political party should be created.
On Saturday evening he wrote on the same platform: “By a factor of 2 to 1, you want a new political party and you shall have it!
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.
“Today, the America Party is formed to give you back your freedom.”
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Trump threatens to ‘put DOGE’ on Musk
The world’s richest man made the announcement just one day after President Trump signed a tax-cut and spending bill into law on Friday, which Musk had fiercely opposed.
Musk had previously said we would form and fund a new political party to unseat lawmakers who supported the bill.
From bromance to bust-up
The Tesla boss backed Trump’s election campaign with more than a quarter of a billion dollars, later rewarded with a high profile role running the newly created department of government efficiency (DOGE).
But observers of the two men, both with huge wealth and reputations, wondered how long the bromance would last.
Donald Trump gave Musk a warm send-off in the Oval Office in May. Pic: Reuters
In May Musk left the role, still on good terms with Trump but criticising key parts of his legislative agenda.
After that, the attacks ramped up, with Musk slamming the sweeping tax and spending bill as a “disgusting abomination” and Trump hitting back in a barbed tit-for-tat.
Trump earlier this week threatened to cut off the billion-dollar federal subsidies that flow to Musk’s companies, and said he would even consider deporting him.
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