Trump threw a party when the House passed a new bill that would change the tax code and slash programs that help poor folks get healthcare and food. The bill, called the “One Big Beautiful Bill Act,” would give more money to border security and the Defense Department while getting rid of taxes on tips and overtime. It also includes a new tax break for seniors and extends the tax cuts from 2017. To pay for all this, they plan to cut green energy tax benefits and slash about $1 trillion from Medicaid and food assistance.
The bill passed the House with only Republicans voting for it, which made Democrats mad. They said it was the biggest tax hike on regular Americans in a long time. Democrats also pointed out that the bill would make huge cuts to healthcare, possibly leaving 14 million people without insurance. Some Republican senators aren’t too happy about the Medicaid cuts and want to make changes to the bill before it becomes law.
There was a big meeting at the White House before the vote, and some Republicans were unsure about supporting the bill. The House Freedom Caucus wants even more cuts to Medicaid, but some senators think those cuts won’t make a big difference in the long run. If the bill passes, new work requirements for Medicaid will start in 2026, and green energy tax credits will go away for projects not already in progress. Overall, the bill is expected to add $3.8 trillion to the deficit if it becomes law.
