The budget bill has been approved by the US House of Representatives, incorporating significant reductions in taxes and government expenditure, despite opposition from both Democrats and some Republican hard-liners.
This spending proposal is a pivotal element of Donald Trump’s legislative plan, which he has referred to as a “big, beautiful bill.”
Following the 216-214 vote on Thursday, Trump expressed his thanks via social media, stating: “Congratulations to the House on the passage of a Bill that sets the stage for one of the Greatest and Most Important Signings in the History of our Country.”
Nonetheless, the House’s proposal includes more significant spending cuts compared to the Senate’s version, and both versions now need to be reconciled into a single bill for the president’s approval.
The process of merging the bills is known as “reconciliation,” and additional legislation will be required to implement the larger tax cuts that Trump has requested.
The current House plan serves as a preliminary outline, aiming for around $5 trillion (£3.9 trillion) in tax reductions.
Over the next ten years, this proposal is projected to increase the US government’s debt by $5.7 trillion, as reported by Reuters. The US Treasury currently states that the national debt is approximately $36 trillion.
Concern over escalating government debt initially prompted several Republican hard-liners in the House to oppose the legislation, calling for more extensive spending cuts.
Earlier this week, Speaker of the House Mike Johnson, a Republican, delayed the vote on the bill due to concerns regarding its passage in a chamber with a slim Republican majority.
By Thursday, only two Republicans had voted against the bill: Thomas Massie from Kentucky and Victoria Spartz from Indiana.
The Senate’s version of the bill, which was passed on Saturday, proposes at least $4 billion (£3.1bn) in spending reductions—merely a fraction of the $1.5 trillion cuts sought by the House.
