Congress passes Trump's 'big, beautiful bill' cutting taxes and spending

July 3, 2025

The US Congress has passed Donald Trump's tax and spending bill with a vote of 218 to 214 in the House of Representatives, following Senate approval earlier in the week. This significant legislative victory for Trump meets his July 4th deadline and includes permanent tax cuts, elimination of taxes on tips and Social Security, along with $150 billion each for border security and military expenditures. According to the Congressional Budget Office, the bill could add $3.

Who is affected

Millions of Americans who could lose health coverage according to CBO estimates
Poor Americans who will experience cuts to food benefits and healthcare
Social Security recipients, whose benefits will no longer be taxed
Workers who earn tips and overtime, who will see tax relief
Wealthy Americans who benefit from tax cuts
Americans relying on food subsidies who may see reductions

What action is being taken

President Trump is expected to sign the bill into law at a ceremony on July 4th
The legislation is making cuts to food benefits and healthcare programs
The bill is making Trump's 2017 tax cuts permanent
$150 billion is being allocated for border security, detention centers, and immigration enforcement officers
Another $150 billion is being directed toward military expenditures, including a "gold dome" missile defense program

Why it matters

The bill represents a major victory for Trump's domestic agenda
It fulfills two major campaign promises from Trump regarding tax cuts
The legislation could significantly impact the federal deficit, adding an estimated $3.3 trillion over ten years
Millions of Americans could lose health coverage as a result of the bill
The bill shifts national priorities by cutting social programs while increasing spending on border security and military programs

What's next

President Trump is expected to sign the bill into law at a ceremony on the July 4th national holiday at 17:00 EDT (22:00 BST)

Read full article from source: BBC