On Thursday morning, the U.S. House of Representatives narrowly passed Donald Trump’s domestic policy tax bill out of the chamber, which now advances to the Senate before being passed into law. The bill, dubbed by Trump as the “big, beautiful bill,” extends the president’s expiring tax cuts that were passed in 2017.

According to the nonpartisan Congressional Budget Office (CBO), the bill will add about $3.8 trillion to the federal government’s $36.2 trillion debt over the next decade. Credit rating firm Moody’s last week stripped the U.S. government of its top-tier credit rating over the mounting national debt.

CBO’s analysis also estimates that resources would decrease by 4% for households in the lowest decile of income earners under the bill. In comparison, resources would increase by 2% for households in the highest volume by 2030.

House passes Trump’s Domestic Policy Tax Bill

🇺🇸 JUST IN: US House passes Trump’s sweeping tax bill in 215–214 vote, adds $3.8T to national debt, slashes benefits, expands tax breaks, and now heads to Senate. pic.twitter.com/91SctWPz5G

— MrRebel.eth (@rebelethpromos) May 22, 2025

Republican Warren Davidson of Ohio and Thomas Massie of Kentucky joined all Democrats on the floor to vote no. Representative Andy Harris for Maryland, who chairs the conservative House of Freedom Caucus, voted present. Representatives Andrew Garbarino and David  Schweikert did not vote. 

The bill must win approval in the Senate before Trump can sign it into law. The upper chamber will consider the bill under a set of rules called budget reconciliation, which requires only a simple majority to pass instead of the usual 60 votes required to move legislation through the Senate.

“To our friends in the Senate, I would just say the president is waiting with his pen. Today proves that we can do that and we will do that. We’re accomplishing a big thing here today, but we know this isn’t the end of the road. To put it simply, this bill gets Americans back to winning again, and it’s been a long time coming.”

-Mike Johnson, Speaker of the U.S. House of Representatives.

Johnson said from the House floor ahead of the vote that he aims to deliver the package to President Donald Trump’s desk by July 4.

The legislation aims to fulfill many of Trump’s populist campaign pledges, eliminating taxes on tips, overtime work, and car loans. It also contains an infusion of money to expand military and border enforcement spending.

The bill’s final version passed Thursday also slashes spending in other areas, including hundreds of billions of dollars in cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP). A timeline for imposing work for Medicaid recipients was also moved up by two years to the end of 2026.

The bill also contains a four-fold increase in the SALT deduction cap, from the current maximum of $10,000 in allowable deductions for state and local taxes paid up to $40,000 for taxpayers reporting less than $500,000 in income.

Markets plummeted Wednesday on concerns that Trump’s spending bill will lead to exploding federal deficits and weaker long-term fiscal health for the country. Yields on the 30-year Treasury bond yield hit 5.09%.

JPMorgan’s Dimon believes the bill will increase deficit

To quote Dimon's comment from yesterday again:

"An extraordinary amount of complacency. […] When I’ve seen all these things adding up that are on the fringes of extreme, I don’t think we can predict the outcome, and I think the chance of inflation going up and stagflation is a… pic.twitter.com/l8duT50i7N

— Rene Sellmann (@ReneSellmann) May 21, 2025

Jamie Dimon, chief executive at JPMorgan Chase, said at JPMorgan’s Global China Summit in Shanghai on Thursday that Trump’s massive tax and spending bill could help bring stability, but it is not conducive to deficit reduction. He believes that the deficit will be large and will continue growing.

Dimon called for responsibility in spending and warned governments could spend money while failing to accelerate growth. He noted that not just the U.S. but governments have shown an ability to spend funds not wisely but set rules and regulations to slow down growth. 

The bank’s official believes that efficient budgeting, planning, and investing would drive growth and effectively help reduce the deficit. Dimon mentioned that he couldn’t rule out the U.S. economy falling into stagflation as the country faces huge risks from geopolitics, deficits, and price pressures.

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