House passes Trump’s tax and budget package, sending it to the president

The House of Representatives passed President Donald Trump’s tax and budget package in a vote of 218-214 on Thursday, July 3, after an all-night voting process that started Wednesday afternoon. The entire Republican leadership team worked to convince the final holdouts to vote “yes,” the president made personal phone calls, and assurances were given about future action on the deficit and entitlement reform. 

Support for the bill came only from Republicans. Every Democrat opposed it, along with 2 Republicans. 

“We heard the message that the voters sent, who said they’re sick and tired of high inflation, of high gas prices, of not being able to fill up their grocery cart because of the spending in Washington, for Washington, at their expense,” Majority Leader Steve Scalise, R-La., said in a speech on the House floor. “And so what does this bill do? It says we’re finally going to turn that around and deliver a bill that focuses on families in America.”

What does the bill do?

The tax and budget package:

• Renews Trump’s 2017 tax cuts that were set to expire at the end of 2025;
• Increases the state and local tax deduction from $10,000 per year to $40,000;
• Increases annual child tax credit to $2,200;
• Provides Customs and Border Protection with $46.5 billion for the border wall and other infrastructure,
• Gives $153 million to the military to build new ships and create missile defense systems;
• Implements Medicaid and SNAP work requirements for able-bodied adults who don’t have children; and
• Changes the Medicaid state-federal cost share system.

How did Democrats respond to the bill?

Democrats opposed the bill in unison because they said it guts Medicaid, reduces SNAP benefits and rewards billionaires with massive tax breaks. 

“Mr. Speaker I rise today in strong opposition to Donald Trump’s one big ugly bill. This disgusting abomination, the GOP tax scam,” House Minority Leader Hakeem Jeffries, D-N.Y., said as he started a record-breaking 8.5 hour speech before the final vote. 

“This is a crime scene and Democrats want no part of it,” Jeffries said, to which Democrats echoed, “shame.”

Not all Republicans happy with bill

While Republicans voted for the bill, many were admittedly not happy with it. Fiscal hawks were concerned it didn’t go far enough to implement cost savings and program reforms, moderates thought it went too far and would lead to benefits cuts for eligible Americans. 

“My colleagues in the Senate failed us. They sent us a bill knowingly using a policy baseline gimmick,” Rep. Chip Roy, R-Texas, said. “They sent it knowing that it was going to have increased deficits.” 

“The Senate’s version of the BBB is morally and fiscally bankrupt,” Rep. Keith Self, R-Texas, said in a post on X.  “We must get back closer to the House-passed version.”

“Full disclosure? I wish we would, we would amend this bill and send it back to the Senate and then let them vote on it,” Rep. Troy Nehls, R-Texas, told reporters.

As Rep. Dusty Johnson, R-S.D., explained, the compromise was necessary and no one was ever going to be fully happy. 

“But politics of the art of the possible, a bill that was conservative enough to make Dusty Johnson jump for joy simply could not get 218 votes in the House,” Johnson told SAN. 

The pressure to vote “yes” was enormous. Trump was directly involved in negotiations and wanted it approved. He threatened to primary anyone who voted against it, and started a primary campaign against Rep. Thomas Massie, R-Ky.

“I wouldn’t want to do a no vote and vote against President Trump. That’s for sure. Clearly, this is his agenda. Clearly, this is his legacy,” Rep. Lisa McClain, R-Mich., said.

The president can now sign this bill into law, making some of its provisions permanent (2017 Tax Cuts and Jobs Act) while others will be in place for 10 years (certain Medicaid provisions), or until they expire and aren’t renewed ($50 billion rural healthcare fund expires 2030).