• The U.S. Congress has passed a sweeping spending and tax bill, signaling major changes to Medicaid, taxes, and immigration policies. The legislation, now awaiting President Trump’s signature, extends tax cuts, restructures healthcare programs, and allocates significant funds for border security. Critics warn of economic risks and reduced health coverage, while supporters highlight fiscal discipline and national security benefits.

WASHINGTON, D.C. (TDR) — In a historic move, Congress has approved a massive spending and tax bill, potentially reshaping key aspects of U.S. policy. The 887-page legislation, often referred to as the “big, beautiful bill,” cleared the House on Thursday with a narrow 218-214 vote, following a 51-50 vote in the Senate earlier in the week that required Vice President JD Vance to break the tie. The bill now heads to President Trump’s desk, aiming to fulfill significant components of his policy agenda ahead of the July 4 deadline.

The legislation extends critical elements of the 2017 Tax Cuts and Jobs Act, making most of its provisions permanent, while also introducing sweeping changes to healthcare, immigration, and energy policies. “This bill reflects our commitment to fiscal responsibility while prioritizing national security and economic growth,” said Senate Majority Leader Mitch McConnell during the debate. However, critics argue the bill could significantly increase federal deficits and reduce social safety nets.

Changes to Medicaid and Healthcare Coverage

The bill includes profound changes to Medicaid, the government-sponsored healthcare program for low-income Americans. New restrictions impose work requirements on able-bodied adults and mandate more frequent eligibility checks. The Congressional Budget Office predicts these measures could result in 11.8 million people losing Medicaid coverage over the next decade.

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A measure that originally sought to cut federal funds for states using Medicaid to cover undocumented immigrants was removed after it was ruled incompatible with Senate reconciliation rules. “The impact on rural hospitals and vulnerable communities could be devastating,” warned Senator Bernie Sanders, citing concerns over potential closures and reduced access to care in underserved areas.

The legislation also allocates $50 billion to a rural hospital stabilization fund to mitigate some of these effects. While Republicans argue the changes improve cost efficiency, Democrats express concerns about the human cost.

Border Security and Immigration Overhaul

Immigration and border security are core components of the legislation, which includes $46.5 billion for border wall construction and related expenses. It also provides $45 billion to expand detention capacity for immigrants and $30 billion for U.S. Immigration and Customs Enforcement (ICE) resources.

The bill introduces a minimum $100 fee for asylum seekers, a significant reduction from the $1,000 fee proposed in earlier drafts. Critics, including human rights organizations, argue that any fee creates barriers for vulnerable individuals seeking refuge. In response, Republican lawmakers emphasized the need for stricter immigration policies to deter illegal crossings.

Tax Cuts Extended and Adjusted

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The legislation preserves key elements of the 2017 Tax Cuts and Jobs Act, making most tax cuts permanent. It raises the cap on state and local tax (SALT) deductions from $10,000 to $40,000 for five years before reverting to the previous cap. Advocates argue this adjustment will benefit middle-class homeowners in high-tax states, while opponents claim it disproportionately helps wealthier taxpayers.

“This provision is a win for families burdened by rising property taxes,” said Representative Elise Stefanik, a Republican from New York. However, progressive lawmakers contend the benefits primarily favor the wealthy, calling for further reforms.

Rollback of Green Energy Incentives

The bill significantly reduces funding for renewable energy programs by terminating several tax credits from the 2022 Inflation Reduction Act. This includes removing incentives for electric vehicles, energy-efficient home systems, and other clean energy initiatives. Critics argue this rollback undermines climate goals and innovation in renewable energy industries.

“This is a step backward in the fight against climate change,” said Senator Ed Markey, a Democrat from Massachusetts. Meanwhile, Republican lawmakers argue these measures reduce unnecessary spending and promote energy independence.

Restrictions on SNAP Benefits

The legislation also imposes new restrictions on the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. States with high error rates in benefit payment accuracy will be required to cover 5% to 15% of program costs beginning in 2028. Additionally, age requirements for work eligibility have been expanded from 18-54 to 18-64.

Supporters argue these changes ensure accountability and reduce fraud, while critics highlight potential harm to low-income families reliant on SNAP benefits. Alaska and Hawaii may receive waivers if they demonstrate effort to comply with the new rules.

Debt Ceiling Raised

The bill raises the U.S. debt ceiling by $5 trillion, surpassing the $4 trillion increase proposed in earlier drafts. Treasury Secretary Scott Bessent has urged Congress to address the debt limit by mid-July, warning of potential government default by August. By including the debt ceiling increase in the broader package, congressional Republicans aim to sidestep separate negotiations with Democrats.

Implications for Families and Workers

The legislation adjusts the child tax credit, permanently increasing it from $1,000 to $2,200. While this falls short of the $2,500 initially proposed by the House, the increase aims to provide relief to families. Additionally, a new “no tax on tips” provision creates a tax break for tipped workers, although it includes income caps and limits on the amount that can be claimed.

Broader Impact and Debate

The sweeping bill has sparked significant debate across political and social spectrums. Supporters argue it prioritizes fiscal discipline, national security, and economic growth, while critics warn of rising deficits and reduced support for vulnerable populations. The Congressional Budget Office estimates the bill will add $3.4 trillion to federal deficits over the next decade.

“This bill represents a balanced approach to addressing our nation’s priorities,” said House Speaker Kevin McCarthy. Still, many questions remain about its long-term economic and social impacts.

As the legislation heads to President Trump’s desk, its approval marks a pivotal moment in U.S. policymaking. Whether it achieves its intended goals or exacerbates existing challenges will likely spark continued debate in the months ahead.

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