US President Donald Trump has secured his first significant legislative victory of his second term, with the US Congress on Thursday narrowly passing what he has dubbed a “big, beautiful bill”—a sweeping package that enshrines key elements of his campaign agenda into law.
The legislation delivers on several of Trump’s long-standing promises, from aggressive tax cuts to enhanced border security and military funding.
That Trump was able to push the bill through a divided Congress—with slim Republican majorities in both the House and Senate—is no small feat. It required bridging ideological divides within his own party: budget hawks demanding steep cuts to federal government spending and moderates wary of scaling back social welfare programmes.
Just months ago, the very prospect of Republicans coalescing around a legislative package of this magnitude seemed unlikely. The House struggled even to re-elect Speaker Mike Johnson in January. But the bill passed with a razor-thin majority, reflecting a fragile but functioning Republican unity.
The legislation authorises around $150 billion each for enhanced border security and defence spending, including funding for Trump’s controversial “gold dome” missile defence initiative. But the most significant—and contentious—provision is more than $4.5 trillion in tax cuts spread over the next decade.
Some of these tax breaks, originally introduced during Trump’s first term, were due to expire and are now being made permanent. New measures include eliminating federal taxes on tips and overtime, promises made during the 2024 campaign that are scheduled to lapse after 2028.
The White House insists that these tax reductions will be offset by economic growth and tariff revenue. But independent analysts estimate the package will add over $3 trillion to the national debt. In fact, the legislation raises the federal borrowing limit by $5 trillion—an implicit acknowledgment that the fiscal gap will widen significantly.
Critics, including Republican Senator Rand Paul, have accused the administration of abandoning fiscal discipline. Tech billionaire Elon Musk also warned of a looming fiscal crisis, arguing that ballooning debt and interest payments could squeeze out essential public spending and drive up rates.
Another Republican senator, Thom Tillis of North Carolina, voted against the bill, citing $1 trillion in cuts to Medicaid. In a pointed floor speech, he accused the president of betraying working-class voters. The Congressional Budget Office estimates that nearly 12 million Americans will lose Medicaid coverage over the next decade under the bill’s provisions—an alarming prospect.
Although the cuts to healthcare and social welfare will not take effect until after the 2026 midterm elections, Democrats are planning to frame the legislation as a transfer of wealth from low- and middle-income Americans to the rich.
“They’re cutting healthcare to fund tax breaks for the wealthy,” one Democratic strategist said. “We won’t let voters forget that.”
Trump, meanwhile, is preparing a high-profile bill-signing ceremony on July 4—Independence Day—and is expected to tout the legislation as proof of his ability to govern through lawmaking, not just executive action.
But as the president celebrates a legislative milestone, the broader battle over the bill’s impact—on both the economy and the American public—is just getting underway.
