The U.S. House of Representatives has passed President Donald Trump's "One Big, Beautiful Bill" after a late-night vote early Thursday (May 22). The bill, a sweeping tax and spending measure, aims to extend provisions from the 2017 Tax Cuts and Jobs Act and introduce new policies, including tax exemptions for tips and overtime wages.
The legislation, which spans over 1,100 pages, also seeks to boost defense and border security spending while reducing funding for Medicaid and food stamps. It would roll back green energy tax credits from the Biden Administration, such as the $7,500 electric vehicle tax credit incentive. According to TIME, the bill is expected to add more than $2.5 trillion to the federal debt over the next decade. However, a senior White House official claims it will generate an additional $2.6 trillion in revenue through increased economic growth.
The House Rules Committee cleared the bill after intense negotiations, with Speaker Mike Johnson expressing confidence in its passage. The bill now moves to the Senate, where it faces a tight deadline for final approval by July 4. Democrats have criticized the measure, warning it could leave millions of Americans without Medicaid and food assistance.
WHAT IS THE ONE BIG BEAUTIFUL BILL?
The "One Big Beautiful Bill Act," a significant piece of legislation, has been approved by the House Budget Committee. The bill, spanning 1,116 pages, includes extensive changes to tax policies, social programs, and more. It aims to extend several provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and introduce new measures.
On the tax front, the bill is set to prevent tax increases for 62 percent of taxpayers by extending TCJA provisions. However, it introduces new targeted provisions, like sunsetting bonus depreciation and research and development expensing, which could impact economic growth. The Tax Foundation's analysis estimates that the bill would reduce federal tax revenue by $4.1 trillion from 2025 to 2034, but could increase GDP by 0.6 percent in the long run.
The bill also proposes significant changes to the Supplemental Nutrition Assistance Program (SNAP), aiming to cut federal funding by $267 billion over ten years. States would need to cover more of the program's costs, potentially leading to reduced benefits for those in need. New work requirements would extend to adults up to age 64, with some exemptions.
The bill's name, "One Big Beautiful Bill," is a nod to President Donald Trump, who praised the legislation. While Republicans support the bill for its fiscal reforms, Democrats have criticized it as extreme and harmful. The bill faces further challenges in the Senate before it can become law.