 "US House approves Trump's tax bill amid debt worries, adds $3.8 trn to debt")
The US House of Representatives narrowly passed a sweeping tax and spending bill that advances President Donald Trump’s 2025 policy agenda, but adds $3.8 trillion to America’s already surging national debt over the next decade, according to the Congressional Budget Office (CBO).
The bill includes tax cuts, military and border enforcement funding, and a sharp crackdown on immigration, along with the rollback of clean energy subsidies introduced during President Joe Biden’s tenure.
Trump described the legislation as “one big, beautiful bill”.
Bill clears House by a 1-vote margin
The bill was passed 215–214, with all Democrats opposed, joined by two Republicans. A third Republican lawmaker voted “present”. The narrow margin reflects deep divisions even within the Republican Party over fiscal responsibility and debt concerns.
The legislation must still pass in the US Senate, where Republicans also currently hold a majority.
Key proposals in the 1,000-page package
The bill proposes to
- Extend 2017 Trump-era tax cuts for individuals and businesses
- Introduce new tax breaks on tips and car loans
- Eliminate clean energy incentives created under the Biden administration
- Tighten eligibility for health and food aid programmes
- Fund mass deportation infrastructure, targeting up to 1 million removals annually
- Add tens of thousands of new border guards and immigration enforcement agents
Debt concerns mount amid Moody’s downgrade
Despite its expansive scope, the bill has drawn criticism for its budgetary impact. The CBO estimates it will add $3.8 trillion to the national debt, which currently stands at $36.2 trillion, or 124 per cent of US GDP.
Last week, credit ratings agency Moody’s downgraded the United States’ sovereign rating, citing unsustainable deficit levels and long-term structural debt risks.
The US has run budget deficits every year since 2000, with both parties contributing to the fiscal imbalance through spending increases and tax cuts.
Approaching the debt ceiling deadline
According to the Congressional Budget Office (CBO), the United States spent one out of every eight dollars on interest payments last year — more than its military expenditure. This proportion is expected to increase to one in every six dollars over the coming decade.
Supporters of the bill within the Republican Party argued that not passing it would have resulted in higher taxes for many US households. Additionally, the bill is intended to raise the federal debt ceiling — a critical step Congress must take by summer to prevent a potentially catastrophic default.
“The success of the country depends on it,” said Representative Stephanie Bice, a Republican from Oklahoma. “These are pro-growth objectives that the president’s very in favour of, and so we’re moving forward.”
The bill is not expected to reach the Senate, where Republicans hold a 53-47 majority, until early June. Senior Republican senators have indicated they may introduce major revisions before any final vote.