House Republicans passed a multitrillion-dollar tax breaks package Thursday, according to the Associated Press.
With reported last-minute concessions and stark warnings from President Donald Trump, Republican holdouts largely dropped their opposition to salvage the “One Big Beautiful Bill” central to the GOP agenda. The House launched debate before midnight and by dawn the vote was called, 215-214, with Democrats staunchly opposed.
It next goes to the Senate, with long negotiations ahead. The Senate hopes to wrap up its version by the Fourth of July holiday.
Central to the package is the GOP’s commitment to extending some $4.5 trillion in tax breaks they engineered during Trump’s first term in 2017, while temporarily adding new ones he campaigned on during his 2024 campaign, including no taxes on tips, overtime pay, car loan interest and others.
To make up for some of the lost tax revenue, the Republicans focused on changes to Medicaid and the food stamps program, largely by imposing work requirements on many of those receiving benefits. There’s also a massive rollback of green energy tax breaks from the Biden-era Inflation Reduction Act.
Additionally, the package tacks on $350 billion in new spending, with about $150 billion going to the Pentagon, including for the president’s new “ Golden Dome” defense shield, and the rest for Trump’s mass deportation and border security agenda.
