CALITODAY (July 3, 2025): President Donald Trump’s sweeping tax cut bill cleared its final hurdle in Congress on Thursday, as the Republican-controlled House passed a massive spending package to fund his domestic agenda—one that will strip millions of Americans of health insurance.
The 218–214 vote marks a major victory for the Republican president. The legislation funds immigration crackdowns, makes the 2017 tax cuts permanent, and enacts new tax breaks Trump promised during his 2024 campaign.
It also slashes healthcare and food assistance programs and eliminates dozens of green energy incentives. According to the nonpartisan Congressional Budget Office (CBO), the bill will add $3.4 trillion to the national debt, bringing the total to $36.2 trillion.
Despite internal GOP concerns over the bill’s 869-page length and its impact on healthcare programs, only two of the 220 House Republicans voted against it—after an all-night standoff. The Senate had already passed the bill by the slimmest possible margin.
The White House announced that President Trump will sign the bill into law at 5 p.m. Eastern on Friday, July 4—Independence Day.
Republican lawmakers argue the law will cut taxes for Americans of all income levels and stimulate economic growth.
“This is jet fuel for the economy, and all boats will rise,” said House Speaker Mike Johnson.
All Democrats in Congress voted against the bill, denouncing it as a giveaway to the super-rich that will leave millions without health insurance.
House Democratic Leader Hakeem Jeffries declared:
“The core of this bill—the reason for all these harmful cuts—is to deliver massive tax breaks to billionaires.”
Jeffries spoke for 8 hours and 46 minutes—setting the record for the longest speech in House history.
Throughout the process, Trump kept up pressure on lawmakers, alternating between encouragement and threats.
"FOR REPUBLICANS, THIS SHOULD BE AN EASY VOTE. RIDICULOUS!!!" he wrote on social media.
Though roughly a dozen Republicans threatened to vote no, only two ultimately did: Brian Fitzpatrick (Pa.), a moderate, and Thomas Massie (Ky.), a fiscal conservative who argued the bill didn’t cut spending enough.
MARATHON WEEKEND
Republicans raced to meet Trump’s self-imposed July 4 deadline, working through the weekend and debating all night in both chambers. The Senate passed the bill Tuesday in a 51–50 vote, with Vice President JD Vance casting the tie-breaking vote.
According to the CBO, the bill will reduce federal revenue by $4.5 trillion over 10 years and cut spending by $1.1 trillion.
Most of the cuts target Medicaid—the healthcare program for 71 million low-income Americans. The bill tightens enrollment rules, imposes work requirements, and limits state funding mechanisms, which the CBO says will lead to nearly 12 million losing coverage.
To ease concerns, Republicans added $50 billion to support rural healthcare providers.
Nonpartisan analysts note that America’s wealthiest will benefit the most, while low-income people will effectively see lower income due to social safety net cuts outweighing tax breaks.
Analysts also warn that the added debt burden will shift costs to younger generations. Moody’s downgraded the U.S. credit rating in May, citing rising debt, and some foreign investors say the bill makes U.S. bonds less attractive.
The bill raises the U.S. debt ceiling by $5 trillion, avoiding near-term default risk. But some investors worry the debt burden could weaken the bill’s stimulus impact and pose long-term interest rate risks.
Tax Relief and Sunset Extensions
On the positive side, the bill prevents upcoming tax hikes that would hit most Americans by year’s end, when the 2017 individual and corporate tax cuts expire. The new law makes those cuts permanent while expanding credits for parents and businesses.
New tax breaks are also introduced for tipped income, overtime pay, seniors, and car loan interest—fulfilling Trump’s campaign promises.
The final version of the bill includes deeper tax cuts and more aggressive healthcare reductions than the House’s May version.
During Senate negotiations, Republicans removed a ban on state-level AI regulations and scrapped a “retaliatory” tax on foreign investment—two issues that had alarmed Wall Street.
The bill is likely to become a central issue in the 2026 midterms, with Democrats hoping to retake at least one chamber of Congress. GOP leaders believe the tax cuts will fuel the economy by then, and that many benefit cuts won’t take effect until after the election. Polls show public concern over the bill’s costs and its impact on the poor.
Longest Speech in House History by Hakeem Jeffries
House Minority Leader Hakeem Jeffries (D-N.Y.) broke the record for the longest speech on the House floor in opposition to Trump’s “Big and Beautiful” bill.
Jeffries surpassed the 8-hour, 32-minute record held by former Speaker Kevin McCarthy around 1:25 p.m., after beginning at 4:53 a.m. Party leaders can invoke “magic minutes”—unlimited floor time—to oppose a bill.
Jeffries’ marathon speech was the only thing standing in the way of Republican passage early Thursday morning, following another all-night session at the Capitol.
Clinton-Era Treasury Secretaries Warn of Economic Risk
In an op-ed for the New York Times, former Clinton Treasury Secretaries Robert Rubin and Larry Summers warned that Trump’s bill poses “significant risks” to the U.S. economy. They contrasted it with policies that balanced the budget in the 1990s.
“We worked with a president committed to reducing debt—and he meant it. This bill is the exact opposite.”
Jeffries also beat former Speaker Nancy Pelosi’s 2018 record of 8 hours and 7 minutes.
James Carville Predicts Possible Recession Regardless
Democratic strategist James Carville predicted that the U.S. “could” enter a recession regardless of whether Trump’s tax-and-spending bill passes.
Appearing on NewsNation’s “Cuomo,” Carville said:
“Well, if it passes, maybe we’ll have a recession. If it doesn’t pass, maybe we’ll still have a recession. I’m not sure it matters.”
However, Carville admitted Republicans had few options:
“I think Bill [O’Reilly] is right—Republicans had to pass something.”
GOP Passes Trump’s Megabill After Dramatic Overnight Vote
Early Thursday morning, House Republicans approved a sweeping legislative package containing Trump’s domestic agenda priorities, clearing a major procedural hurdle.
The House voted 219–213 to adopt the rule governing debate, paving the way for final passage.
It was a major gamble for Speaker Mike Johnson (R-La.), who faced backlash from ideological factions within his party. Hardliners threatened to derail the rule unless it was delayed past Wednesday.
Johnson did not back down. He left the vote open for over five hours to secure enough support—much of it thanks to Trump, who called wavering members directly to persuade or intimidate them.
In a rare dramatic moment, Johnson gathered dissenting Republicans on the House floor to pray together before closing the vote—then took a photo with them.
Trump’s Final Push Secures Rule Vote Victory
After hours of gridlock—with four GOP “no” votes and 10 members abstaining—Trump personally called several holdouts, including Massie, Victoria Spartz (R-Ind.), and Tim Burchett (R-Tenn.). Johnson soon announced he had the votes.
All eight previously uncast votes flipped to yes, along with four others who changed from no to yes. Only Fitzpatrick remained opposed.
The House is now debating the “Big, Beautiful” bill ahead of a final vote around 8:00–8:30 a.m. Eastern on Thursday, July 3.
Trump’s Massive Bill Clears Dramatic Hurdle for Final Vote
White House Applies Pressure on Tariffs
With Trump's legislative win within reach, lawmakers advanced the bill to the president’s desk after overcoming internal GOP revolt—thanks to 18+ hours of lobbying and intimidation.
Speaker Johnson defended his risky approach: “We’re going to make that July 4 deadline—people laughed at me.”
At 3 a.m., the House passed the procedural rule 219–213. Only Fitzpatrick joined Democrats in opposition.
It was the longest vote in House history.
Trump spent much of Wednesday night and early Thursday calling lawmakers, promising, cajoling, and threatening over issues like Medicaid cuts, debt, and tax cuts.
Johnson also had to manage the hardline House Freedom Caucus, which could’ve tanked the bill over budget concerns.
Rep. Thomas Massie (R-Ky.), a Trump critic, hinted he’d flip if the president stopped attacking him.
Trump also argued that rejecting the bill would hand Democrats a political victory. That worked.
Rep. Warren Davidson (R-Ohio), who opposed the bill in May, flipped:
“No one cuts a deal like President Trump. He’s a master.”
Rep. Dusty Johnson (R-S.D.), running for governor, agreed:
“The president is the ultimate closer.”
Rep. Jeff Van Drew (R-N.J.) said Trump was very concerned about raising the debt ceiling before mid-August.
Hidden Detail: Gambling Tax Loophole Tightened
One provision alarming the gambling industry limits loss deductions to 90% instead of 100%. Previously, if someone won and lost $100,000, they paid no taxes. Now, they’d be taxed on $10,000 in “phantom” gains.
The Joint Committee on Taxation estimates this will save $1.1 billion.
Rep. Dina Titus (D-Nev.), who represents Las Vegas, said:
“We’ll try to strip this out. If not, I’ll introduce a separate bill.”
Seniors Get Targeted Tax Break—but Not All Benefit
The “Big, Beautiful” bill offers a new tax break for seniors who pay tax on Social Security income—but not the poorest or wealthiest.
How it works:
Both House and Senate versions raise the deduction for filers over age 64. In the Senate version, it’s $6,000 per individual and $12,000 for couples.
The deduction phases out for incomes over $75,000 ($150,000 for couples) and vanishes entirely at $175,000/$250,000.
This benefit expires in 2028—along with other Trump priorities like no tax on tips, overtime, and car loan interest.
White House View:
“This is the largest tax cut in American history for seniors,” said White House Council of Economic Advisers.
But: About 64% of seniors already pay no tax on Social Security income. This won’t help them.
Behind the scenes: Trump had promised to eliminate the tax on Social Security income. But full repeal isn’t allowed under budget reconciliation and current law.
Still, the benefit gets close to that goal. With the new provision, 88% of seniors will pay no tax on Social Security, per the White House.
Spokesperson Abigail Jackson said:
“The Big, Beautiful bill delivers on President Trump’s promise not to tax Social Security.”
However: According to the Committee for a Responsible Federal Budget, the bill will deplete Social Security and Medicare one year earlier—by 2032.
