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US House of Representatives on Thursday narrowly passed a sweeping tax and spending bill that enacts much of Donald Trump’s policy agenda, despite warnings it would add nearly $4 trillion to the national debt.
The legislation, which Trump has called “one, big, beautiful bill,” cleared the House with a 215–214 vote. All Democrats opposed the bill, along with two Republicans, while a third Republican voted “present.” The 1,000-page package now heads to the Senate, where it must be approved before it can become law.
The bill would extend corporate and individual tax cuts passed during Trump’s first term in 2017, introduce new tax breaks on tips and car loans, and eliminate several green-energy incentives introduced under Joe Biden. It would also tighten eligibility for food and healthcare assistance programs and significantly expand border enforcement, including the hiring of tens of thousands of new agents and provisions for deporting up to a million people annually. Military spending would also increase under the proposal.
According to the nonpartisan Congressional Budget Office as quoted by Reuters, the bill would add about $3.8 trillion to the US government’s $36.2 trillion debt over the next decade. That projection has triggered alarm among fiscal watchdogs and economists, especially following Moody’s decision last week to downgrade the US’s credit outlook. Debt has now climbed to 124 per cent of GDP, a record level that reflects two decades of persistent budget deficits under both Republican and Democratic administrations.
The House vote followed two nights of round-the-clock debate, with Republican leaders pushing hard to deliver on a central piece of Trump’s campaign platform. Whether the bill will pass the Senate remains uncertain, with some GOP senators already expressing concern about the fiscal impact.
(With Inputs from Reuters)
