'Americans will be richer...safer': Trump after tax-and-spending bill passes Congress
What's the story
The United States House of Representatives passed Donald Trump's signature tax and spending legislation, the "One Big Beautiful Bill," with a 218-214 vote on Thursday. The bill includes $4.5 trillion in permanent tax cuts and new tax breaks. It also makes $1.2 trillion in spending cuts, mainly targeting Medicaid and food stamps. Trump will sign the bill into law on July 4. He said that with the bill, Americans "will be richer, safer, and prouder than ever before."
Economic impact
Trump calls it rocket fuel to an already strong economy
Trump has hailed the bill as "rocket fuel to an already strong Trump economy." He slammed Democrats for their opposition, saying they voted against it out of hatred for him. He lauded the bill's vast reach, adding that it gives the "biggest tax cut in history," coupled with huge improvements in border security and the military. "Great for security, great on the southern border, immigration is covered,...Again, it's the biggest bill ever signed of its kind," the president said.
Medicaid cuts
Nearly 12 million people to lose Medicaid coverage
The legislation makes Trump's 2017 tax cuts permanent and offers new breaks for overtime pay and tipped workers. It also raises the cap on state and local tax deductions from $10,000 to $40,000 for five years.' The legislation imposes stricter eligibility requirements and new work mandates for Medicaid, potentially leading to nearly 12 million people losing coverage. It also blocks gender transition treatments under Medicaid and care for undocumented immigrants in some states.
SNAP changes
Major cuts in Supplemental Nutrition Assistance Program
To offset these cuts, a $50 billion fund has been added to help rural hospitals affected by the changes. Furthermore, the Supplemental Nutrition Assistance Program (SNAP), or food stamps, will now require states with high error rates to cover part of the costs. The work requirement age for able-bodied adults is also raised from 54 to 64 years. However, states like Alaska and Hawaii can apply for waivers from this requirement.
Border security
Bill allocates $46 billion for border wall
It also allocates over $46 billion for building a border wall and provides $30 billion to boost staffing at Immigration and Customs Enforcement. Asylum seekers will now have to pay a $100 fee, reduced from the previous $1,000 proposal. Additionally, the legislation raises the national debt ceiling by $5 trillion to prevent a government default later this year. It also rolls back tax credits for electric vehicles and other green programs. However, existing contracts will remain in place.