President Donald Trump has hailed the approval of his contentious tax and spending bill, claiming it will significantly boost the U.S. economy. Dubbed the "Big Beautiful Bill," Trump asserted it would transform the nation into a "rocket." The legislation marks the most substantial legislative success of his second term, fulfilling key promises of tax cuts and increased funding for border security and defense.
Despite passing the House with a narrow vote and the Senate with Vice President JD Vance's tie-breaking support, the bill faces criticism for its impact on healthcare and social services. It extends tax cuts from Trump's first term and eliminates taxes on tips and overtime, while increasing defense and border security funding.
However, it also introduces new debts and cuts to healthcare, potentially affecting millions of low-income Americans. Former President Joe Biden criticized the bill for its severe social cuts.
States are preparing for increased responsibilities as federal support diminishes, raising concerns about their ability to sustain essential services amid economic slowdowns.
