The Trump Tax Cut Bill 2025 has overcome its first major hurdle. The Republican US House of Representatives on Thursday voted 215–214 to pass the far-reaching tax and spending bill, their party’s showpiece. The bill implements essential components of Donald Trump economic program, such as tip and car loan tax cuts, boosting military and border enforcement expenditures, and reductions to social programs.
But it also sends disturbing fiscal warning signs. As the Congressional Budget Office (CBO) explains, the legislation would increase the already whopping $36.2 trillion national debt by $3.8 trillion within the decade. The bill now goes to the Senate, which will vote in early June.
Tax Breaks and Colossal Spending Increases
The 1,000-page bill executes some of Trump’s 2016 and 2024 campaign promises. It extends tax cuts for individuals and corporations initially passed in 2017. It eliminates green energy tax incentives created during the tenure of Joe Biden. The bill also restricts access to food and healthcare assistance to reduce federal expenditures on poor programs.
Simultaneously, the bill increases military spending and border security. It authorizes the recruitment of tens of thousands of additional border patrol agents and creates infrastructure to deport as many as 1 million individuals annually.
Debt Fears and Credit Downgrade
Despite the support from major Republicans, increasing concerns are around America’s debt burden. US debt is now at 124% of GDP. Moody’s just lowered the nation’s credit rating because of fiscal risks.
The CBO says that without this bill, regardless of entitlement reform, aging populations will drive up healthcare and pension costs. Already, interest payments take up 1 in every 8 federal dollars. That number could go up to 1 in 6 in a decade.
Republican Divisions and Democratic Criticism
Two Republicans opposed the bill, and one voted “present.” Representative Thomas Massie called it reckless, saying, “We’re putting coal in the boiler and setting a course for the iceberg.”
Meanwhile, Democrats slammed the bill as a handout to the wealthy. CBO analysis shows it would reduce income for the bottom 10% of earners while boosting earnings for the top 10%.
Medicaid Cuts and Political Maneuvering
To secure conservative support, House Speaker Mike Johnson spurred new work requirements on Medicaid. They will now go into effect by the end of 2026. CBO predicts millions of people will lose coverage. The bill also penalizes future efforts to expand Medicaid. To win over centrists, Johnson included more generous state and local tax deductions—helping Republicans in states with high taxes.
The Senate, in which Republicans have a 53–47 majority, will consider the bill in June. Senior GOP senators have already indicated significant changes in the works. Meanwhile, Trump “one, big, beautiful bill” advances—comprising tax cuts, ballooning debt, and laying the groundwork for an ugly Senate battle.
