US Congress approves Trump bill that could increase country's debt by $3.3 trillion

The US Congress has approved President Donald Trump's proposed tax bill, which is considered a milestone in his second term. Dubbed a "big, beautiful bill", the proposal will be used by both Democrats and Republicans in next year's midterm elections, which could change the makeup of Congress, currently dominated by Trump's party.

The bill was approved by the House of Representatives on Thursday (July 3) by a vote of 218 to 214, after being ratified by the Senate on Tuesday (July 1) by a narrow margin of 51 to 50. The bill was signed into law by Trump last Friday (July 4) during a ceremony at the White House.

According to the US Congressional Budget Office, the legislation would add about 3.3 trillion euros (about $3.6 trillion) to the country's debt over the next decade. Among other things, the proposal would suspend taxes, increase funding for Trump's immigration policy and increase defense spending.

The bill has been the subject of debate in both the Senate and the House due to the high cost of the bill and the substantial cuts to the Medicaid program, which benefits the poorest and most disabled Americans. Opposition has also come from billionaire Elon Musk, who is critical of the overspending. Trump had to intervene throughout the week to convince members of his own party to support the legislation.

The approval complies with a request from Donald Trump, who stipulated that the vote should take place by July 4. The tax bill is a priority for Trump, as it implements his 2024 campaign banners, such as the elimination of taxes on tips and overtime pay. It also allows the hiring of more than 10,000 ICE agents (the US immigration agency), with the aim of reaching the goal of one million deportations per year, as stated by White House Press Secretary Karoline Leavitt. Additionally, it promotes the production of fossil fuels, changing Joe Biden's previous policy.

Moments after the bill passed, Leavitt said it was a “victory for the American people.” Democrats, for their part, expect the measure to backfire and plan to use the food and health care cuts to try to regain their majority in the House in next year’s elections.

One of Trump's challenges now will be to promote the law and present it as a job creator and a stimulus for the economy, looking ahead to the 2026 elections that could change the forces in the Legislature. It is not excluded that he will do this through trips around the country.

Democrats have united in opposition to the bill, saying the tax breaks disproportionately benefit the wealthy while cutting essential services that low- and middle-income Americans rely on.

Democratic Minority Leader Rep. Hakeem Jeffries spoke for 8 hours and 45 minutes in an attempt to delay passage of the bill, setting a record for the longest speech in House history.

Conservative members of the Republican Party have also resisted the bill, saying it does not cut spending enough and raises the country's debt ceiling by 5 trillion euros ($5.4 trillion). The issue is expected to be debated by lawmakers in the coming months, under threat of a default on the country's 36.2 trillion euro ($39.3 trillion) debt. Only two Republicans voted against the measure.

Republicans in Congress said Trump had offered them assurances to vote that Medicaid cuts would not affect people in their districts during implementation.

A senior White House official said the administration had moved to detail the bill and its implementation, allaying concerns that it would harm the public. The administration official said he had lost count of the calls and meetings Trump had had with lawmakers over the past week. To convince dissident Republicans, House Speaker Mike Johnson had pressed them to end an attempted rebellion against the bill and pass the bill.

“Are you tired of winning yet?” Johnson asked. “We have a government that is responsible and accountable to the people once again,” the Republican said, praising the bill’s tax cuts and funding to strengthen border security, two of Trump’s campaign promises.

In the vote, only two Republicans voted against the bill, considering that the party has 220 representatives against 212 Democrats. The opponents were Thomas Massie, from Kentucky, and Brian Fitzpatrick, from Pennsylvania.

The legislation extends vast tax cuts from Trump’s first administration, funded in part by steep cuts to Medicaid and other welfare programs. The bill would also repeal Biden-era tax credits for clean energy, while increasing investment in the military and funds for Trump’s immigration crackdown.