• House Republicans passed the “One Big Beautiful Bill Act” with a narrow 215-214 vote.
• The bill includes $3.8 trillion in tax cuts and significant cuts to social welfare programs.
• Critics warn it will lead to millions losing health coverage and exacerbate wealth inequality.
• The legislation proposes increased military spending and changes to immigration policies.
• The bill now moves to the Senate, where further amendments are anticipated.

On May 22, the Republican-controlled U.S. House of Representatives narrowly passed the "One Big Beautiful Bill Act," a sweeping tax and spending bill aimed at fulfilling many of President Donald Trump’s legislative priorities. The bill was approved with a slim majority of 215 to 214 after a prolonged debate that extended through two nights, demonstrating deep divisions within the party, particularly among factions advocating for deeper spending cuts versus moderates concerned about potential loss of health coverage for constituents, according to latimes and latimes.

The legislation encompasses $3.8 trillion in tax cuts, primarily benefiting higher earners, alongside $1 trillion in cuts to federal health care and food programs, primarily impacting the Medicaid program. The Congressional Budget Office (CBO) projects that these measures could lead to approximately 8.6 million individuals losing their health insurance coverage, a fact highlighted by various Democratic leaders who have described the bill as a "tax scam" designed to benefit the wealthy at the expense of the middle and lower classes, as reported by huffpost and indiatimes.

Key features of the act include provisions that increase military and border security funding, eliminate certain taxes on tips and overtime pay, and introduce new work requirements for food assistance programs. Critics within and outside the Republican party caution that these shifts could severely undercut social safety nets and contribute to a national debt expected to increase by an additional $4 trillion over the next decade, according to analyses from the CBO and huffpost.

Despite the contentious nature of the legislation, Speaker of the House Mike Johnson proclaimed that this was a transformative initiative that would reshape the American political landscape, with Trump rallying support in a rare visit to the Capitol, urging lawmakers to pass the bill quickly. However, the plan now faces potential hurdles in the Senate, where Republicans have expressed a desire to make significant changes before final approval, according to thehill and channelnewsasia.

As the bill moves to the Senate, discussions around both tax cuts and spending measures are expected to intensify, with some Republicans advocating for a breakdown of the package into smaller, more focused bills to foster bipartisan agreement while addressing significant fiscal concerns raised by critics within both parties, noted by huffpost and bbc.