The United States House of Representatives has been locked in a dramatic impasse over President Donald Trump‘s signature tax and spending package, dubbed the “One Big Beautiful Bill“. Despite the bill’s passage in the Senate, a rebel group of Republican lawmakers has failed to support the bill, which is opposed by all Democratic representatives. The standoff has stretched into the early hours of Thursday, as Republican leadership works to persuade holdouts to send the bill to Trump’s desk by the July 4 deadline.
Trump has railed against the rebels on social media, stating, “For Republicans, this should be an easy yes vote. Ridiculous!” He added, “Largest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy. What are the Republicans waiting for?” Trump also warned that “MAGA is not happy, and it’s costing you votes”.
The bill combines sweeping tax cuts, spending hikes on defense and border security, and cuts to social safety nets into one giant package. However, it faces opposition within Trump’s Republican Party, with moderate critics expressing concern about its cuts to social safety-net programs like Medicaid, and conservatives baulking at the trillions it is likely to add to the national debt.
Five Republicans voted against the bill: representatives Victoria Spartz of Indiana, Andrew Clyde of Georgia, Keith Self of Texas, Brian Fitzpatrick of Pennsylvania, and Thomas Massie of Kentucky. House Speaker Mike Johnson said he would keep voting open “as long as it takes” and believes the Republican holdouts will “come on board”. Johnson expects to proceed to a final vote on the legislation in the early hours of Thursday morning.
Democrats have ramped up their criticisms of the policy package, with Representative Chuy Garcia describing the legislation as a “bad bill to enrich those who are already rich”. So far, 217 House Representatives have voted against advancing the legislation, including five Republicans, while 207 are in favor. The bill needs 218 votes to advance.
The “One Big Beautiful Bill” includes several key provisions, such as:
- Permanent Tax Cuts: The bill makes permanent the 2017 Tax Cuts and Jobs Act, preventing a 22% tax hike that would have hit taxpayers in 2026.
- Border Security Funding: The bill allocates $175 billion for immigration enforcement, including $50 billion for border wall construction and $45 billion for ICE detention facilities.
- Medicaid Cuts: The bill imposes an 80-hour monthly work requirement for able-bodied adults without dependents receiving Medicaid and slashes nearly $800 billion from Medicaid over 10 years.
- SNAP Cuts: The bill reduces Supplemental Nutrition Assistance Program (SNAP) funding and introduces new eligibility verification rules and shorter recertification periods.
- Defense Spending: The bill increases defense spending by $150 billion, with a focus on advanced defense systems, cyber warfare capabilities, and space-based assets.
Impact of the Bill
The bill’s passage could have significant implications for various sectors, including:
- Defense Stocks: Companies like Lockheed Martin, Raytheon, and Northrop Grumman could benefit from record Pentagon funding.
- Private Prison and Border Contractors: Companies like GEO Group and CoreCivic could see revenue upside from increased detention capacity and immigration enforcement.
- Energy Sector: Traditional oil and gas plays may gain from the rollback of green incentives.
- Healthcare Insurers and Hospitals: Potential Medicaid enrollment drops could hurt managed care companies like Centene and Molina.