In a dramatic overnight vote early Thursday morning, House Republicans passed a sweeping package of tax cuts, entitlement reforms, and conservative policy priorities long championed by President Donald Trump, narrowly pushing forward one of the most ambitious legislative efforts of the new Congress. The bill passed 215 to 214, with two Republican defections and one GOP lawmaker voting “present.”
The bill, described by Speaker Mike Johnson as “big and beautiful,” extends the hallmark 2017 Trump tax cuts, introduces a new “no tax on tips” provision — a key Trump campaign promise — and imposes new work requirements on Medicaid recipients. The legislation also expands border security funding and raises the cap on the controversial state and local tax (SALT) deduction, in a major win for Republicans from high-tax blue states.
“This is a generational conservative victory,” Speaker Johnson declared shortly after the vote. “After years of stalling, infighting, and the disastrous policies of the Biden era, we are now back on track to deliver the America First agenda the people elected us to pass.”
Tense Negotiations and Internal GOP Divisions
The bill's path to passage was far from smooth. Fierce internal divisions within the Republican caucus nearly sank the effort, with fiscal conservatives objecting to the bill’s impact on the national deficit and moderates pushing for regional tax relief. Ultimately, Johnson brokered a series of eleventh-hour compromises to secure the votes he needed.
Among the most contentious debates was over Medicaid reform. Fiscal hawks demanded stricter measures and earlier implementation of work requirements for able-bodied adults. Johnson agreed to move the work requirement start date from 2029 to December 2026, satisfying most of the Freedom Caucus — though not all.
Representative Thomas Massie (R-KY), who voted no, blasted the bill as “a debt bomb ticking.” In a blistering floor speech, he accused his colleagues of “feeding the beast” of federal spending rather than reining it in. “We’re not just rearranging deck chairs on the Titanic tonight. We’re fueling the engine,” he said.
Representative Warren Davidson (R-OH) also voted no, while Representative Andy Harris (R-MD), chairman of the Freedom Caucus, abstained by voting “present.”
Blue-State Republicans Win SALT Cap Increase
Another pivotal change came in response to pressure from moderate Republicans in states like New York, New Jersey, and California. These lawmakers lobbied hard to lift the SALT deduction cap — a long-standing sore spot since it was set at $10,000 in the 2017 tax law.
In a significant concession, GOP leaders agreed to quadruple the cap to $40,000, though with income phaseouts starting at $500,000 for individuals. Critics, particularly on the party’s right flank, warned the move would benefit the wealthy and blow a larger hole in the federal budget.
Cultural Flashpoints and Clean Energy Rollbacks
Beyond tax and entitlement reforms, the bill includes several culture war provisions that reflect Trump’s growing influence over GOP policymaking. The legislation bans Medicaid funding for gender-transition care not only for minors but also for adults — a first in federal law. It also renames so-called “MAGA accounts,” savings accounts for children, to “Trump accounts.”
In a nod to fossil fuel interests and traditional conservatives, the bill rolls back some clean energy tax credits, including a sunset clause for nuclear facility subsidies starting in 2028.
A Steep Hill in the Senate
Despite the victory in the House, the bill’s future in the Senate is far from assured. While Republicans plan to use the budget reconciliation process to bypass a Democratic filibuster, they still face an uphill battle in securing the support of moderate GOP senators and holding the line against Democratic opposition.
Senate Republicans are already signaling changes. One senior GOP aide told National Review, “This bill will not pass the Senate without revisions. It’s more of a starting point than a finished product.”
Trump’s Role and the Road Ahead
President Trump, who has taken an increasingly hands-on approach in shaping the bill, reportedly spoke to holdout lawmakers by phone and sent aides to Capitol Hill in recent days to rally support. Trump praised the bill in a post on Truth Social, calling it “the most beautiful legislation ever passed by the House — big tax cuts, real border security, and NO TAX ON TIPS!”
Speaker Johnson has pledged to deliver the bill to Trump’s desk by Memorial Day, a timeline many observers see as ambitious given the political and procedural hurdles in the Senate.
Still, Johnson remained upbeat. “To our friends in the Senate,” he said before the vote, “the president is waiting with his pen.”
Conclusion
The House’s passage of the Trump-backed bill marks a defining moment in this Congress and a bold effort to cement the former president’s policy legacy ahead of the 2024 election. But with deep partisan divides and intraparty fault lines, the coming Senate fight may prove just as dramatic — and decisive.
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