The Republican-led US House of Representatives has narrowly approved a major tax and spending package, passing it by a slim 215-214 margin. The legislation revives and expands key elements of the 2017 tax cuts enacted under former President Donald Trump, while introducing new tax breaks for tipped income, overtime, and car loans.
All Democratic representatives, along with two Republicans, opposed the bill. One Republican voted "present."
In addition to the tax provisions, the bill boosts defense spending and allocates more funding for immigration enforcement. It also rolls back several environmental policies promoted during President Joe Biden's administration, while tightening eligibility for healthcare and food assistance programs aimed at low-income individuals.
The legislation, which spans more than 1,100 pages, now moves to the Senate&mdash;also under Republican control&mdash;where revisions are expected.
Former President Trump praised the bill on his social media platform, calling it &ldquo;the most significant piece of Legislation that will ever be signed in the History of our Country.&rdquo;
However, budget watchdogs have raised alarms. The Committee for a Responsible Federal Budget warned that the package could increase the national debt by over $3 trillion in the coming decade, not including potential future extensions. The Congressional Budget Office projects an even higher impact, estimating the bill will add around $3.8 trillion to the federal debt over the next ten years. The US national debt currently exceeds $36.2 trillion.
House Speaker Mike Johnson, who made last-minute concessions to unite his caucus, described the bill as &ldquo;generational, truly nation-shaping legislation.&rdquo;

US President Donald Trump and Speaker of the House Mike Johnson

Republican-led legislation revives 2017 tax cuts, expands spending, and faces sharp warnings over $3.8 trillion debt impact

US House Passes Major Trump-Era Tax-Cut Bill Amid Debt Surge Concerns

Republican-led legislation revives 2017 tax cuts, expands spending, and faces sharp warnings over $3.8 trillion debt impact

May 23, 2025 | 10:28 IST