President Donald Trump capped the whirlwind opening stretch of his second term with a Fourth of July signing ceremony for his signature legislation, reveling in pushing the megabill through a fractious Congress and delivering on multiple campaign promises.
The measure cements into law much of Trump’s agenda and is being hailed by the president and his supporters as a major victory.
It includes tax cuts, increased spending on immigration enforcement and the military and deep spending reductions to Medicaid that Democrats and some Republicans have strongly criticized.
But with the furious legislative debate behind him, Trump was ebullient as he signed what he has dubbed the “Big beautiful bill” into law during a White House ceremony that included legislative leaders and a flyover from military planes.
“We made promises, and it’s really promises made, promises kept,” Trump said, addressing a crowd of supporters gathered on the White House South Lawn, his wife at his side.
Trump sketched out some of the broad strokes of the bill on the campaign trail as he proposed to cut taxes on tipped wages and overtime pay and greatly expand immigration enforcement and deportation efforts. The legislation does that, and a lot more.
It extends the 2017 tax cuts that Trump passed and were set to expire at the end of the year and has many other provisions, including reducing taxes on corporations and large estates, boosting the child tax credit, increasing the deduction for state and local taxes to $40,000 and eliminating dozens of green energy incentives. The bill reduces tax revenues by roughly $4.5 trillion over 10 years, according to the nonpartisan Congressional Budget Office.
In the process, it adds $3.4 trillion to the national debt over a decade, according to CBO, and includes a $5 trillion increase in the debt ceiling. CBO projects it will result in 12 million people losing health insurance, while the Senate Joint Economic Committee Minority estimates that about 20 million people could lose coverage. Medicaid is being cut by nearly $1 trillion.
Different factions of Republicans took aim at the bill, with some complaining about the Medicaid cuts and other arguing the legislation didn’t go far enough to cut spending.
Yet the nearly 900-page legislation cleared Congress less than six months into Trump’s second term, allowing him to quickly put in place the centerpiece of his agenda. Since reclaiming the White House, the president has moved aggressively to implement his priorities, from overhauling the federal government to mass deportations.
Trump has relied heavily on executive orders to accomplish his goals, which can be reversed if a Democrat wins the presidency. The legislation he signed July 4 could be a more lasting legacy. He was able to hold together a GOP caucus that at times seemed poised to buck him, but ultimately fell in line, once again demonstrating the president’s immense influence within his party.
“I think I have more power now,” Trump said after the bill passed, in discussing his sway with congressional Republicans.
The legislation narrowly cleared the Senate, with three Republicans breaking ranks to vote against it and the chamber ending in a tie vote that was broken by Vice President JD Vance, resulting in a 51-50 margin. It passed the House 218-214 with two Republicans opposed.
Democrats were united against the measure, saying that it disproportionately benefits the wealthy and hurts lower-income Americans. House Minority Leader Hakeem Jeffries, D-New York, laid out these concerns in a marathon address that broke the record for longest House speech.
“I rise today in strong opposition to Donald Trump’s disgusting abomination… that guts Medicaid, rips food from the mouths of children, seniors and veterans, and rewards billionaires with massive tax breaks,” Jeffries said.
The legislative drama will now give way to a political messaging battle over the legislation.
Trump and his allies predict it will turbocharge the economy and ultimately benefit the party, even as polls show it’s unpopular.
“After this kicks in our country is going to be a rocket ship economically,” Trump said before signing the legislation surrounded by lawmakers, including House Speaker Mike Johnson, who handed him a gavel used during the bill’s passage.
Former Trump White House Press Secretary Sean Spicer called the legislation “a massive legislative and political victory” and said passing it now allows time for its effects to “marinate into the economy and I think will be a huge bonus for Republicans in both chambers running” in the 2026 midterm election.
“The consequence and effects of this bill will be baked into the economy for 18 months and I believe spur economic growth, job creation” Spicer said.
Some Republicans are nervous about political fallout, though. North Carolina Sen. Thom Tillis opposed the bill because of the Medicaid provisions.
In a Senate floor speech criticizing the legislation, Tillis attributed his rise to U.S. senator to blowback against former President Barack Obama’s 2010 health care law, the Affordable Care Act, which fueled crushing Democratic losses across the country.
The GOP is now rushing into similarly perilous territory, Tillis implied, by cutting Medicaid.
Contributing: Sarah Wire, Phillip Bailey, Reuters
This article originally appeared on USA TODAY: Donald Trump signs BBB megabill into law that cuts taxes, Medicaid
