WASHINGTON — Landmark legislation that would rewrite the tax code and levy steep cuts to programs providing healthcare and food stamps to the poor passed the House early Thursday, a development that was celebrated by President Trump despite the bill facing an uncertain future among Senate Republicans.
The measure, titled the “One Big Beautiful Bill Act,” would boost funding for border security and the Defense Department, eliminate taxes on tips and overtime, provide a new tax deduction to seniors and renew the 2017 tax cuts passed during the first Trump administration. To pay for those new funding commitments, the bill proposes eliminating green energy tax benefits passed under President Biden, as well as an estimated $1 trillion in cuts to Medicaid and the Supplemental Nutrition Assistance Program.
Even still, the bill would add so much money to the debt that Congress may be forced to execute cuts across the board, including hundreds of billions to Medicarein a process known as sequestration, according to the nonpartisan Congressional Budget Office.
The House vote fell along party lines. By opposing the bill, the Trump administration said that Democrats were supporting the largest tax increase on middle-class Americans in decades, a reference to the upcoming expiration of Trump’s 2017 tax cuts at the end of the year.
Democrats, on the other hand, have accused Republicans of voting for the deepest cuts to healthcare in modern times. By creating new barriers to Medicaid coverage through the introduction of work hour requirements, as well as increasing premiums under the Affordable Care Act, the CBO and other nonpartisan organizations estimate up to 14 million Americans could lose their insurance coverage.
Those drastic changes to the healthcare landscape have given pause to several Republican senators.
Sen. Susan Collins of Maine has said she is “very wary of cutting Medicaid.” Sen. Josh Hawley of Missouri said he “can’t support” substantial cuts to Medicaid benefits. And after the vote on Thursday, Sen. Roger Marshall of Kansas said that material changes should be expected to the House bill.
“We need to go back through that bill with a fine tooth comb and make it better,” Marshall said in an interview with Newsmax. “I think there’s opportunities in Medicaid to make that bill better, to make sure that we strengthen it, that we preserve it for those who need it most.”
Any Senate rollback of cuts to the Medicaid program could face resistance from the House Freedom Caucus during the reconciliation process. Members of that group, which proclaims a commitment to fiscal conservatism, have called for even deeper cuts to the Medicaid program.
Rep. Andy Harris of Maryland, chair of the House Freedom Caucusvoted “present” early Thursday morning, preserving negotiating leverage as the bill makes its way across Capitol Hill.
“I voted to move the bill along in the process for the president,” Harris wrote on social media. “There is still a lot of work to be done in deficit reduction and ending waste, fraud, and abuse in the Medicaid program.”
The vote came hours after Trump met with GOP holdouts at the White House. As late as Wednesday afternoon, before meeting with the president, several of those lawmakers were casting doubt on the prospects of the bill’s passage this week, ahead of a Memorial Day deadline set by House Speaker Mike Johnson, a Louisiana Republican.
Republican Sen. Lindsey Graham of South Carolina was dismissive of the Freedom Caucus on Thursday, telling CNN that the cuts they are pushing for would barely make a dent in the national debt.
“You had your chance,” Graham said to the caucus. “Some of these cuts are not real. We’re talking about over a decade — you know, if you do $1.5 trillion, that’s like a percent and a half. So let’s don’t get high on our horse here that we’ve somehow made some major advancement of reducing spending, because we didn’t.”
Sen. Kevin Cramer of North Dakota also mocked the caucus, calling it “rich” for its members to lecture Senate Republicans on fiscal conservatism, “and end up with not that conservative a bill.” The CBO estimates the House legislation would result in a $3.8-trillion increase to the deficit.
If passed, the new work requirements to Medicaid would kick in at the end of 2026, right after the midterm elections. Green energy tax credits would phase out for any project that is not already under construction 60 days after the law comes into force.
The cap on the state and local tax deduction, known as SALT, will increase to $40,000 from $10,000, phasing out for individuals and households making more than $500,000. And while the president campaigned on a promise to eliminate taxes on Social Securitya parliamentary rule precluded Republicans from including a full cut. Instead, the bill proposes an enhanced tax deduction for senior citizens of up to $4,000.
On Truth Social, the president’s social media platform, Trump wrote that the bill is “arguably the most significant piece of Legislation that will ever be signed in the History of our Country!”
“There is no time to waste,” he added. Johnson, the speaker, has set a goal of sending the bill to the president’s desk by Independence Day.
Trump’s press secretary, Karoline Leavitt, said the president’s team was “suiting up” for negotiations with the Senate now that the bill has passed the House. “We will see how it goes,” she said.
“The ‘One Big Beautiful Bill’ is named the ‘One Big Beautiful Bill’ for a reason, because it is a one big beautiful bill that encompasses just about everything this president could want for the American public. It delivers on so many of his core campaign promises. So surely we want to see those campaign promises signed into law,” Leavitt said. “He’s expecting them to get busy on this bill and send it to his desk as soon as possible.”
The two House Republicans who voted against the bill, Thomas Massie of Kentucky and Warren Davidson of Ohio, should face primary challenges for their defiance of the president’s directive, Leavitt added.
“What’s the alternative, I would ask those members of Congress. Did they want to see a tax hike? Did they want to see our country go bankrupt? That’s the alternative by them trying to vote no,” she said. “The president believes that the Republican Party needs to be unified.”
“One Big Beautiful bill”: Expert Analysis on the Proposed Tax and Spending Overhaul
keywords: tax cuts,Medicaid,SNAP,healthcare,budget deficit,Congressional Budget Office,Trump tax cuts,”One Big Beautiful Bill Act”,Senate Republicans,fiscal conservatism,green energy tax credits.
Time.news: The House recently passed the “One Big Beautiful Bill Act,” a sweeping piece of legislation promising tax cuts and increased spending, but also facing significant hurdles in the Senate. To unpack the complexities and potential impact of this bill, we spoke with Dr. evelyn Reed, a leading economist specializing in fiscal policy. Dr. Reed, thanks for joining us.
dr. Evelyn Reed: It’s my pleasure.
Time.news: Let’s start with the basics. The bill promises a lot: extending the 2017 tax cuts, eliminating taxes on tips and overtime, a new senior tax deduction, increased border security and Defense funding.How does it propose to pay for all this?
Dr. Evelyn Reed: That’s the million – or rather, trillion – dollar question. The bill primarily aims to offset these costs by eliminating green energy tax benefits established under the Biden administration and, moast significantly, by implementing significant cuts to medicaid and the Supplemental Nutrition Assistance Program (SNAP).
Time.news: those Medicaid and SNAP cuts are significant.The article mentions an estimated $1 trillion in cuts. What kind of impact are we talking about?
Dr. Evelyn Reed: A trillion dollars is a massive amount. These cuts could substantially reduce access to healthcare and food assistance for vulnerable populations. the Congressional Budget Office (CBO) estimates that millions could lose health insurance coverage due to new work requirements and increased Affordable Care Act premiums. This would disproportionately affect lower-income individuals and families.
Time.news: So, even with those cuts, the CBO projects a $3.8 trillion increase to the budget deficit. How does that happen?
Dr. Evelyn Reed: This highlights the core issue. While proponents argue the tax cuts will stimulate economic growth,the CBO doesn’t see it offsetting the costs. The tax cuts, especially extending the 2017 cuts which primarily benefit higher-income earners, coupled with increased spending in other areas, simply outstrip the revenue generated from eliminating green energy credits and cutting social programs.
Time.news: And the article mentions “sequestration.” Can you explain what that is and why it’s relevant?
Dr. Evelyn Reed: Sequestration is a process of automatic, across-the-board spending cuts triggered if Congress fails to meet deficit reduction targets.Because this bill is projected to increase the debt so significantly,it could force these automatic cuts,possibly impacting programs like Medicare and further straining the budget.
Time.news: The bill passed the House along party lines, but faces uncertainty in the senate. Several Republican senators have expressed reservations about the Medicaid cuts. What are the possible scenarios moving forward?
Dr. evelyn Reed: There are a few possibilities. The Senate could significantly amend the bill, scaling back the cuts to Medicaid or other programs. This would then require reconciliation with the House version, a process that could be difficult given the House Freedom Caucus’s desire for deeper cuts. Another scenario is the Senate rejecting the House bill outright,essentially sending it back to square one. Or, a compromise could be reached, resulting in a bill that looks different from the original House version.
Time.news: The House Freedom Caucus seems to be a key player. How much influence do they have over the final outcome?
Dr.evelyn Reed: the House Freedom Caucus wields considerable influence within the Republican Party, particularly on fiscal matters. Thier support is crucial for any bill passed by the House,and their commitment to fiscal conservatism means they will likely push for deeper cuts than some Senate Republicans are willing to stomach. This creates a significant tension point in the legislative process.
Time.news: The bill also includes some specific provisions, like increasing the state and local tax (SALT) deduction and phasing out green energy tax credits. How would these elements affect different groups?
Dr. Evelyn Reed: The SALT deduction increase, while helpful, predominantly benefits higher-income individuals in states with high state and local taxes. The phasing out of green energy tax credits could slow down investment in renewable energy projects and potentially hinder efforts to combat climate change.
time.news: Dr. Reed, what’s your key takeaway for our readers regarding the “One Big beautiful Bill Act”?
dr. Evelyn Reed: This bill represents a significant potential shift in tax and spending priorities. While it offers tax cuts and increased funding in certain areas, it also carries the risk of increasing the national debt and potentially harming vulnerable populations through cuts to essential social programs.Its fate in the Senate remains highly uncertain,and the ultimate impact will depend on the specific details of any final legislation that emerges. It’s crucial for citizens to stay informed and engage with their elected officials about their concerns.
