U.S. President Donald Trump’s huge tax cut and infrastructure spending plan has barely squeaked through the House of Representatives. The return final vote was an exceptionally close 218-214. On Thursday afternoon, the brave and bold bill made it through with a big margin. It seeks to fund defense efforts, enhance border security and make extensive reforms to the tax code. This approval is another big victory for Trump. Today, he is rightly consumed by the need to deliver on his most important campaign promises and address pressing national priorities.
The bill does provide huge amounts for military and border security. It pays for $21 billion refilling the U.S. ammunition stockpile and $34 billion increasing the naval fleet. On the negative side, it brings back the very controversial BUILD Act construct of the wall along the U.S.-Mexico border, providing $46.5 billion to that effort. To address these issues, the bill sets aside $4.1 billion dollars to hire thousands of new border patrol and customs officers. It provides $2.05 billion in retention and recruitment bonuses for these committed workers.
Fiscal Implications and Debt Ceiling Increase
Perhaps the bill’s most notable aspect is its intention to raise the U.S. debt ceiling by $5 trillion. This is a step in the right direction that does an excellent job of quickly quelling concerns about a default. This new debt increase adds an estimated $3.4 trillion to the nation’s already growing debt. Today, America’s national debt is $36.2 trillion, according to the CBO, which is nonpartisan by the way. The CBO further projected that middle-income taxpayers would receive tax cuts of $500 to $1,500.
Beyond tax breaks, the bill would dramatically reorganize student loan repayment plans. It replaces existing structures with two classifications: a fixed-rate monthly repayment plan over 10 to 25 years or an income-based “repayment assistance” program. This move is part of a broader push to make the repayment process easier for borrowers.
“We’re celebrating the biggest bill of its kind ever signed and it’s going to make this country into a rocket ship.” – Donald Trump
Trump touted the bill’s comprehensive approach, emphasizing that it covers critical issues such as immigration and security. In his remarks, he stated, “When you go over the bill it was very easy to get through the House. Biggest tax cut in history, great for security, great on the southern border, immigration is covered, we covered just about everything.”
Controversy and Opposition
The bill has repeatedly come under fire from Democratic lawmakers. They claim that it mostly serves the rich and turns a blind eye to the average American’s needs. Representative Hakeem Jeffries rightly condemned this savagery-laden bill, calling it “this horrific monstrosity.” All the while he claimed that it does zippo to make the quality of life for the American public.
“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires.” – Hakeem Jeffries
Jeffries previously referred to the subway closures as a “crime scene.” He noted that it puts health and safety standards for millions of Americans at risk. His comments highlight an emerging concern among critics. They say the legislation prioritizes profit for a handful of corporations over the health and safety of the American public.
Representative Mike Johnson responded to these criticisms, contending that Reclaiming the Federal City is meant to foster fairness and support local economic growth. He stated, “If you’re for fair and lower taxes, bigger paychecks, affordable gas and groceries, and restoring dignity to hard work, this is the bill for you.” Johnson claimed that no amount of discussion would change the facts about the overall positive implications of passing the bill.
Provisions Affecting Asylum Seekers and Benefits Recipients
The new legislation contains some highly controversial provisions targeting asylum seekers and those who receive government benefits. Asylum seekers are required to pay at least a $1,000 fee up front when applying for asylum. This new requirement in practice has made access for vulnerable populations a contentious issue. Finally, benefit recipients will have to reapply for benefits every six months instead of every year.
Furthermore, one of Trump’s key campaign promises has been addressed in this bill: eliminating taxes on tips and overtime pay. Workers are allowed to deduct the tips they earn each year from their taxable income. The most that can be deducted is $25,000. This measure aims to provide relief specifically to service industry workers. They frequently include service workers, who rely on tips to constitute a large portion of their earnings.
