Washington, D.C. – After days of tension, drama, and all-night arguments, former President Donald Trump’s huge new money plan—called a tax-cut and spending bill—was finally approved by the U.S. Congress. It’s a massive victory for Trump, but also comes with a huge cost.
🧾 What Is This Bill All About?
This 869-page bill does a LOT of things all at once. Here’s what it includes:
✅ Makes Trump’s 2017 tax cuts permanent
✅ Adds new tax breaks for parents, seniors, and workers
✅ Raises the debt ceiling to avoid the U.S. going broke
✅ Funds immigration crackdowns
❌ Cuts healthcare programs like Medicaid
❌ Slashes food aid and green energy programs
💵 Adds $3.4 TRILLION to the U.S. national debt
🏛️ How Did the Vote Go?
In the House of Representatives (one of the two main groups in Congress), the vote was very close:
218 said YES, and 214 said NO. Just four votes made the difference!
✅ Almost every Republican voted YES
❌ Every Democrat voted NO
Even though many Republicans were worried about the bill’s high cost, only two ended up voting against it.
🤯 Why Are People Arguing Over This Bill?
Democrats say the bill is bad for regular people because:
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It gives huge tax breaks to billionaires
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It takes away healthcare from almost 12 million poor Americans
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It cuts safety-net programs like food aid
Republicans, on the other hand, say:
“This is jet fuel for the economy. Everyone will benefit!”
— House Speaker Mike Johnson
📉 What Will This Bill Really Do?
According to the Congressional Budget Office (CBO):
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It will cut taxes by $4.5 trillion over 10 years
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It will cut spending by $1.1 trillion
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It will make 12 million people lose Medicaid (government health insurance for the poor)
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It will add more debt for future generations
💬 Experts say this bill gives the most money back to the richest Americans, while lower-income people may actually lose more than they gain.
😓 Trump’s Big Push
Trump really wanted this bill passed before July 4th (America’s Independence Day), and he wasn’t shy about pressuring lawmakers.
He wrote on social media in ALL CAPS:
“FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!”
In the end, only two Republicans—Brian Fitzpatrick and Thomas Massie—said no.
🏥 What Happens to Healthcare?
One of the most painful parts of the bill is the Medicaid cuts:
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It makes it harder to sign up
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Adds a work requirement (you must have a job to qualify)
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Stops states from using some funding tricks
Many small hospitals and clinics in rural areas were scared these cuts would put them out of business, so Republicans added $50 billion to help them survive.
💸 What About the Debt?
This bill will raise the U.S. debt ceiling by $5 trillion, avoiding a government shutdown—for now.
But experts and investors are worried. Ratings firm Moody’s already downgraded the U.S. credit rating in May, saying all this debt is dangerous.
Some say this could lead to higher borrowing costs, which means it’ll be more expensive for the U.S. to borrow money in the future.
🏁 What Did the Final Bill Change?
The final version of the bill:
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Added bigger tax cuts
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Made deeper healthcare cuts
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Removed a tax on foreign investors
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Dropped a rule that would’ve banned state AI regulations
🗳️ What’s Next?
This bill will become a huge issue in the 2026 midterm elections. Democrats hope voters will punish Republicans for the healthcare cuts. But Republican leaders believe people will feel richer by then and vote to keep the changes.
