A bill advancing tax cuts and border security measures, endorsed by President Donald Trump, passed the U.S. House of Representatives by a single vote after an all-night session.
The budget reconciliation bill passed by the House now moves to the Senate. Although President Trump is urging quick action, “that may not be likely given questions about the contents of the hastily amended legislation,” Virginia Tech Political scientist Karen Hult said. “The bill, which passed by a vote of 215-214, includes considerable fodder for celebration and outrage — and seems likely to amplify uncertainties and concerns of investors, consumers, businesses, state and local governments, and a host of others in and outside the United States.”
Hult said “the evident ‘winners’ are House Speaker Mike Johnson, who succeeded in bringing Trump’s ‘big beautiful bill’ to passage before the Memorial Day recess; Republican representatives of ‘blue states’ who negotiated a higher income ceiling for the tax deductibility of state and local taxes, or SALT; supporters of extending the 2017 tax cuts and eliminating taxes on tips; and advocates for expanded border enforcement.
“At the same time, the bill includes deep cuts and accelerated work requirements for Medicaid and SNAP — with obvious concerns for current recipients, and for state and local government officials faced with administering these changes and coping with their effects,” she said.
“Meanwhile, according to the Congressional Budget Office, if passed the legislation would boost deficits by more than $2.3 trillion between 2025 and 2034. Such significant increases in federal deficits and cumulative debt are exactly what members of the House Freedom Caucus long have opposed. Stock and bond markets almost immediately reacted,” Hult said. “Deficits of that magnitude also would raise interest rates on the debt and for other borrowers and would trigger ‘sequestration,’ that is, cuts in programs like Medicare, which provides health care for the elderly and disabled.”
“This, of course, is taking place while many businesses, employees, and consumers remain uncertain about the levels and effects of tariffs and cuts in federal programs and work forces,” she said.
Virginia Tech
