Trump's Tax Bill Heads To Senate After Clearing House, Projected To Add $3.8T To Fiscal Deficit

President Donald Trump’s tax bill, which extends the tax cuts from his previous term, passed a crucial vote in the House on Thursday and is now headed to the Senate, which has a Republican majority.

Nicknamed “One Big Beautiful Bill” by President Trump, it cleared the House with a slim margin of 215-214. 

Representatives Thomas Massie of Kentucky and Warren Davidson of Ohio voted against it, along with all Democrats, for a total of 214 “Nay” votes.

Rep. Andy Harris, chair of the House Freedom Caucus, voted present, registering his protest while allowing the Trump administration to clear the House hurdle.

The bill is now headed to the Senate, where Republicans hold a 53-47 majority.

Speaker Mike Johnson, who expressed confidence that the bill would pass in the House, said, “To our friends in the Senate, I would just say, the President is waiting with his pen,” according to CNBC.

Trump’s tax bill moved the timeline for new work requirements for Medicaid by two years to 2026, drawing applause from conservatives.

However, the bill also allows for a $40,000 deduction for state and local taxes (SALT) for people making $500,000 or less per year, which is a win for the SALT Caucus.

Deficit Projected To Balloon

According to an estimate by the Congressional Budget Office, Trump’s tax bill could increase the federal fiscal deficit by $3.8 trillion over the next decade, adding to the existing debt of $36.2 trillion.

“In general, resources would decrease for households in the lowest decile (tenth) of the income distribution, whereas resources would increase for households in the highest decile,” it said.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, was down 0.34% at the time of writing.

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Also See: Dow Futures Edge Lower After Trump’s Tax Bill Clears The House