House of Representatives approves Trump’s tax and immigration bill
4 July 2025 05:16
The House of Representatives has passed a large-scale tax and immigration program that the Republican Party hopes will change the US economy and negate the policies of the Joe Biden administration. This was reported by "Komersant Ukrainian" with reference to CNN.
218 congressmen voted in favor of the document, 214 against. After the vote, the bill was sent to the head of state for signature.
The president is expected to sign it before the US Independence Day, which is celebrated on July 4.
Main provisions of the bill
The document provides for the extension of tax benefits, the abolition of taxation of tips and overtime pay. In addition, a significant portion of the funds will be allocated to strengthen immigration control and the defense sector.
In particular, the draft law
- extends the tax breaks adopted in 2017;
- abolishes the tax on tips and overtime wages;
- allocates hundreds of billions of dollars for immigration programs and funding for the Pentagon.
Sources of funding
To compensate for the additional costs, the bill provides for cuts to social programs totaling about $1 trillion. This includes
- reducing funding for the federal Medicaid program, which provides insurance coverage to low-income and disabled people;
- reducing funding for the SNAP program, which provides food assistance.
The Congressional Budget Office estimates that nearly 17 million people could lose access to health insurance or related subsidies over the next decade as a result of the changes.
Conflict with Elon Musk
The adoption of the bill caused a public conflict between President Trump and entrepreneur Elon Musk, who had previously supported the president’s campaign.
Musk, who until recently headed the Department of Government Effectiveness (DOGE) created for him, criticized the content of the bill and threatened to create his own political force, the Party of America.
In response, Trump said he might initiate a review of government funding for rocket launches, satellite production, and electric vehicles. He also said that he was considering canceling support for federal programs related to Musk’s companies and even deporting the entrepreneur, despite his American citizenship.
Once signed by the president, the document will come into force. The bill has already become one of the key initiatives of Trump’s second term and part of the political agenda ahead of the upcoming elections.
