• House Republicans narrowly pass Trump's multitrillion-dollar tax-cut bill.
• The package could add approximately $3.8 trillion to the national debt over the next decade.
• The bill includes new tax breaks, spending boosts for military, and stricter eligibility for welfare programs.

The Republican-controlled House of Representatives has passed a sweeping tax and spending bill, known as the “One Big Beautiful Bill,” narrowly achieving a 215-214 vote. This legislation fulfills many of President Trump’s populist campaign promises, including significant tax cuts and increased funding for military and immigration enforcement. However, it is projected to add about $3.8 trillion to the federal debt over the next decade, raising concerns about its fiscal implications, particularly given the U.S. debt already stands at $36.2 trillion, according to Los Angeles Times, South China Morning Post, and Al Jazeera.

The legislation is notable for extending tax cuts from Trump's 2017 tax overhaul while canceling many of the green energy incentives established by former President Biden. It also imposes stricter eligibility requirements for federal health and food assistance programs like Medicaid and SNAP, which opponents argue will affect millions of low-income individuals. Critics, including Democratic leaders, have branded the bill as benefiting the wealthiest Americans disproportionately, with estimates suggesting that it would reduce incomes for the bottom 10% while increasing those for the top 10%, as reported by Los Angeles Times, South China Morning Post, and Al Jazeera.

During the contentious house sessions, Speaker Mike Johnson emphasized the bill as “generational, truly nation-shaping legislation,” stating that Republicans felt an imperative to pass the bill before upcoming deadlines regarding the federal debt ceiling and expiring tax cuts. Meanwhile, concerns over the implications of the growing national debt were highlighted by analysts and some lawmakers who noted that interest payments on debt could eventually overshadow military spending, according to Los Angeles Times and South China Morning Post.

The bill must now receive approval in the Senate, where Republicans hold a slim majority, which means potential amendments and changes could arise during the debate. The heightened scrutiny over the nation’s fiscal health and the ongoing budget deficits have made this legislation particularly contentious, with plans to increase the debt ceiling by $4 trillion also tied to the passage of this bill. This could avert a risk of default later in the year, as stressed by many lawmakers, per South China Morning Post and Al Jazeera.