The US House of Representatives passed an important budget bill aimed at reducing taxes and cutting trillions of dollars in government spending. Despite opposition from the Democratic Party and some Republican members, the bill was passed. This plan is a key part of Trump's policy, which he called "a big, beautiful bill". Trump sees this as a major victory for his administration.
After a narrow vote of 216-214 on Thursday, Trump congratulated the House on this significant step, viewing it as one of the most important signatures in US history. Both the House and Senate have passed different versions of the bill and are in the process of reconciliation before Trump signs it. This process is called 'Reconciliation'.
The House version includes larger spending cuts and proposes around $5 trillion in tax reductions, but this could increase national debt by approximately $5.7 trillion in the next 10 years. With the US government currently owing around $36 trillion, this plan could increase debt unless there are other savings or revenues.
Some Republican members initially opposed the bill due to concerns about increasing public debt, demanding more significant spending cuts. House Speaker Mike Johnson delayed the vote early in the week, fearing he would not achieve a majority vote due to the slim Republican party margin. Only two Republican members voted against the bill.
The Senate version passed on Saturday includes at least $4 billion in spending cuts, much less than the $1.5 trillion proposed by the House. Republican Senate members argue that the $4 billion is minimal and they will do everything possible to reduce spending further.
Critics warn that this could worsen public debt. Trump's new bill proposes significant spending cuts along with tax reductions, including cuts to social welfare. While some believe this will boost the economy, experts are concerned it might make public debt more serious. The White House believes increased import tariffs will cover losses, but experts warn that reduced imports could lead to lower revenues.
Treasury Secretary Scott Bessent praised the bill as demonstrating the administration's commitment to growth. Congress may soon need to raise the US debt ceiling. While the House has passed the bill, the Democratic Party calls this an irresponsible action due to proposed cuts to Medicaid and is determined to fight more strongly in Congress.
Additionally, the White House criticized Democratic allegations that some legislators might have known in advance about Trump's tariff suspension decision. Navarro, Trump's advisor, rejected concerns that sudden tariff suspension could cause long-term economic damage, arguing it was merely a normal adjustment and the media has exaggerated the issue to politicize the situation.
