US President Donald Trump has officially signed a significant policy bill into law, following its narrow passage through Congress. The signing ceremony, held at the White House on Friday afternoon, marks a pivotal moment in Trump’s agenda, implementing crucial tax cuts, increasing defense spending, and enforcing stricter immigration measures.
Celebration at the White House amid controversy
The event was marked by a festive atmosphere as Trump signed the legislation just ahead of planned Independence Day fireworks and a military picnic featuring pilots involved in recent operations against Iranian nuclear sites. During the signing, Trump expressed confidence that the bill will spur economic growth, although he faces the challenge of convincing a skeptical public, as recent polls indicate widespread disapproval of various aspects of the legislation.
Opposition emerged even from within Trump’s Republican Party, primarily due to concerns regarding the rising national debt. Democrats have also criticized the bill, arguing that it disproportionately favors the wealthy at the expense of lower-income individuals. The 870-page package includes:
- Extension of the tax cuts established during Trump’s first term in 2017
- Significant reductions in Medicaid funding, which provides healthcare for low-income and disabled individuals
- New tax incentives for tipped income, overtime earnings, and Social Security benefits
- A $150 billion increase in defense spending
- Cutbacks to clean energy tax credits introduced during the Biden administration
- $100 billion allocated to Immigration and Customs Enforcement (ICE)
Political maneuvering and public response
Just before the signing, the skies over the White House were graced by a fly-by of B-2 bombers, accompanied by advanced F-35 and F-22 fighter jets. Speaking from the White House balcony overlooking the South Lawn, Trump acknowledged the pivotal role played by Republican lawmakers in passing the bill. He touted the tax cuts it implemented while downplaying criticism regarding the potential negative effects on social programs like food assistance and Medicaid.
“The largest spending cut, and yet, you won’t even notice it,” he remarked. “The people are happy.”
Trump also highlighted additional funding for border enforcement and the removal of taxes on tips and overtime for senior citizens, claiming the bill would achieve these goals. The celebratory mood at the White House followed intense negotiations with dissenting Republican members in Congress, with House Minority Leader Hakeem Jeffries delaying the final vote by delivering a nearly nine-hour speech criticizing the bill’s provisions.
The bill ultimately passed with a narrow margin of 218 votes to 214, with only two Republicans joining all 212 Democrats in opposition. Earlier in the week, the Senate had passed the bill, but a tiebreaking vote from Vice-President JD Vance was necessary due to three Republicans withholding their support. Shortly after the House vote, Trump took to the stage in Iowa, celebrating the bill’s passage as a significant achievement ahead of the 250th anniversary of American independence.
The White House is optimistic that the tax cuts will stimulate economic growth, although experts remain skeptical about the potential for these cuts to effectively counterbalance the burgeoning budget deficit. According to analysis from the Congressional Budget Office (CBO), while the tax cuts might generate a surplus in the first year, they are expected to lead to a substantial increase in the deficit in subsequent years.
Furthermore, the Tax Policy Center’s research suggests that the tax modifications will predominantly benefit wealthier Americans, with approximately 60% of the gains going to individuals earning over $217,000 annually. As reported, many Americans are particularly concerned about potential cuts to subsidies that assist with grocery expenses. One individual, Jordan, a father of two, benefits from the Supplemental Nutrition Assistance Program (SNAP) and expressed his worries, stating that any reduction in his benefits could force him to seek additional employment to support his family.
Changes to Medicaid are also projected to lead to nearly 12 million individuals losing coverage over the next decade, according to the CBO. While Republicans defend their Medicaid revisions by citing the need to curb abuse and fraud through stricter work requirements, public support for the bill remains low. A recent Quinnipiac University poll indicated that only 29% of respondents supported the legislation, with backing rising to two-thirds among Republicans. However, awareness of the bill’s specifics appears limited, as indicated by conversations with Trump supporters at a recent rally in Iowa.