President Donald Trump has officially enacted his extensive tax and spending bill, a day following its narrow approval from Congress, marking a key victory for his administration. The signing ceremony, held at the White House just before the Fourth of July celebrations, introduced crucial components of Trump's policy goals, including tax reductions, increased defense budgets, and stricter immigration measures.
During the signing event, Trump expressed optimism about the bill’s potential to stimulate economic growth, although he faces a challenge in winning over Americans who are doubtful, as recent polls indicate strong disapproval regarding certain aspects of the plan. The legislation, an expansive 870-page package, consists of several pivotal stipulations, including:
- Extension of the 2017 tax cuts from Trump's first term
- Significant cuts to Medicaid funding, impacting low-income and disabled citizens
- New tax incentives related to overtime, tipped workers, and Social Security
- A $150 billion boost for defense spending
- Reduced tax credits for clean energy initiatives
- A $100 billion allocation for Immigration and Customs Enforcement (ICE)
Highlighting the military significance, a display of B-2 bombers escorted by cutting-edge F-35 and F-22 jets flew over the White House during the event. In his address, Trump thanked Republican leaders who facilitated the bill's progress while defending the projected benefits against criticisms regarding the effects on social safety nets like food assistance and Medicaid. "You won't even notice the largest spending cut," he asserted. However, the bill has sparked contention, with severe criticism from House Minority Leader Hakeem Jeffries, who labeled it a destructive force against American healthcare.
Despite the celebratory environment among Republicans following the bill's passage—approved narrowly by 218 to 214—only two Republican members joined the united front of 212 Democrats in opposition. Earlier, the Senate required the decisive vote from Vice President JD Vance after three Republicans expressed dissent.
In a rally in Iowa later, Trump celebrated the new law as a gift for America's upcoming 250th anniversary of independence, yet experts remain concerned about the potential rise in budget deficits arising from tax cuts that predominantly benefit wealthier Americans. The Congressional Budget Office anticipates an initial surplus but projects an inflation of the deficit in subsequent years. Notably, research suggests around 60% of benefits from tax changes will favor individuals earning above $217,000.
Moreover, families who rely on programs like the Supplemental Nutrition Assistance Program (SNAP) brace for potential reductions in aid. One father, benefiting from SNAP, expressed determination to secure his family's well-being by seeking additional work if needed.
Republicans argue that the alterations to Medicaid aim to minimize fraud and increase accountability through stringent work requirements. Public sentiment appears to lean towards opposition, with a recent poll showing only 29% approval for the legislation, despite a rise to two-thirds among Republican respondents. However, it seems many supporters may lack detailed knowledge about the bill's contents, posing questions about its long-term political repercussions.
