President Donald Trump has signed a sweeping tax and spending bill during a ceremonial event at the White House, marking a significant legislative milestone.
The bill, passed by the House in a narrow 218-214 vote on Thursday, faced unified Democratic opposition and dissent from two Republicans, Reps. Brian Fitzpatrick and Thomas Massie.
The legislation permanently extends the 2017 tax cuts, increases the child tax credit to $2,200, and raises the state and local tax deduction cap to $40,000 until 2030.
It also allocates $46.5 billion for border wall construction, $45 billion for immigration detention, and $30 billion for U.S. Immigration and Customs Enforcement resources.
The Congressional Budget Office projects the bill will add $3.3 trillion to the deficit over the next decade.
The legislation introduces stricter Medicaid rules, including work requirements and frequent eligibility checks, which could lead to 11.8 million Americans losing coverage over ten years.
Changes to the Supplemental Nutrition Assistance Program include expanded work requirements and cost-sharing for states with high payment error rates.
The bill also allows tipped workers to deduct up to $25,000 of tips and overtime from taxes until 2028, while phasing out clean energy tax credits from the 2022 Inflation Reduction Act.
At an Iowa rally, Trump described the bill as a “phenomenal victory” and a fitting “birthday present for America” ahead of the nation’s 250th anniversary in 2026.
The event, meant to launch anniversary celebrations, saw Trump criticize opponents and tout achievements like reduced egg prices and trade deals.
The bill’s passage, achieved through intense negotiations and late-night calls, underscores Trump’s deep involvement, as noted by a senior White House official.