House Passes GOP Tax Bill by One Vote — What’s Inside and What’s Next

The House has passed one of the most ambitious tax and spending packages in recent memory — and it barely scraped through. The “One Big Beautiful Bill Act,” pushed hard by Trump and reluctantly backed by a fractured GOP, passed 215–214 in a dramatic late-night session. It now heads to the Senate, where the real battle begins.

Locking In the Trump Tax Cuts

At the heart of the bill is a permanent extension of the 2017 tax cuts. What was once temporary is now locked in: lower individual rates, a slashed corporate tax, and the full Trump-era tax structure baked into law. Republicans framed it as restoring certainty. Democrats called it a giveaway.

The House Are Cutting Taxes at Both Ends of the Ladder

The bill doesn’t just recycle old tax policy — it adds new sweeteners. Tip income and overtime pay will now be exempt from federal income tax, a clear move to court working-class voters. The SALT deduction cap — a sore spot for high-tax states — jumps from $10,000 to $30,000, thanks to pressure from swing-district Republicans. It’s a big win for upper-middle earners in blue states.

Child Credit Is Up — For Now

The child tax credit climbs to $2,500 — but only until 2028. After that, it quietly rolls back to $2,000. It’s a temporary benefit in an otherwise permanent tax overhaul, and one of the few nods to lower-income families in the entire package.

Welfare Cuts Are Being Made for Tighter Safety Nets

On the spending side, Republicans made deep cuts. Medicaid now requires proof of work — or job seeking — to maintain coverage. SNAP eligibility is narrowed, with analysts expecting a 30% reduction in total benefits. Student loan subsidies take a hit, and wealthy university endowments face a new federal tax. It’s the clearest expression of Trump-era budget priorities: cut public aid, hit elite institutions, and push labor force participation.

The Bill Boosts Defense Spending

While slashing social programs, the bill opens the taps elsewhere. $46.5 billion goes to border security — walls, agents, drones, surveillance. Defense spending gets a $150 billion boost, funding missile shields, shipbuilding, and next-gen weapons systems. It’s a military and border budget straight from the Trump 2016 playbook — just with more money behind it.

The bill carries a heavy price tag. According to the Congressional Budget Office, it will add $3.8 trillion to the national debt over the next decade. Republicans argue the cuts will spur enough economic growth to offset the cost. Critics — including some in their own ranks — aren’t buying it.

The Senate will be a tougher sell. Moderate Republicans are already worried about the bill’s impact on Medicaid and the deficit. Others want to revisit the cuts to clean energy and student aid. GOP leadership doesn’t have votes to spare. Expect amendments. Expect delays.

For Trump, this is a clear legislative win — and a signal to his base that he’s still driving the agenda. But the celebration may be short-lived. The Senate could gut key provisions, and the long-term political cost of slashing benefits while ballooning the deficit is still unknown.