The Republican-controlled U.S. House of Representatives made significant progress on Thursday by advancing U.S. President Donald Trump's tax and spending megabill. This development came after a dramatic night of voting that almost fell apart due to defections from within the Republican ranks. Ultimately, the House voted 219-213 to move the bill forward, marking a critical step in the final debate process and a notable victory for Republican leadership eager to fulfill Trump's policy agenda for his second term.
Following the news of the bill’s advancement, U.S. futures showed little change. The S&P 500 futures rose by 0.16% at 03:52 a.m. E.T., while Nasdaq 100 futures increased by 0.25%. Futures linked to the Dow Jones Industrial Average also saw a modest rise of 0.12%. After hours of negotiation and maneuvering, Republican leaders managed to unite their slim majority, overcoming internal opposition to push the bill forward.
The vote to initiate the debate was not without its share of drama, characterized by back-room deals, shifting alliances, and negotiations that extended until the final moments. House Speaker Mike Johnson successfully advanced the bill, losing only a handful of members in a vote that largely adhered to party lines. "It's been a long, productive day. We've been talking with members from across the conference and making sure that everyone's concerns are addressed," Johnson stated to reporters on Wednesday night, shortly before the vote that ensured the bill’s passage. "We feel very good about where we are, and we're going to be moving forward."
In a stark contrast, Trump expressed dissatisfaction with some members of his party, criticizing them on his Truth Social media platform: "FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!" The bill faces staunch opposition from Democrats, who are particularly concerned about proposed cuts to welfare programs and perceived benefits for the ultra-rich, prompting accusations of fearmongering from Republican members.
During the debate, Rhode Island House member Gabe Amo of the Democratic Party voiced strong objections, stating, "The top 1% are salivating over getting an extra $300,000 per year because of this dangerous bill. Billionaires win. 17 million Americans will lose their health insurance." A final vote on the megabill is anticipated to take place around 05:30 a.m. E.T., according to reports from Reuters.
The debate will lead to a vote on the final version of the bill, which aims to extend the 2017 tax cuts and allocate additional funding for border security while implementing significant cuts to health insurance and nutrition programs aimed at assisting the poor. Once the House approves the bill again, it will be sent to Trump's desk, where he has long expressed his desire to sign the package into law.
The House received the revised bill from the Senate late Tuesday, where it barely passed with a tie-breaking vote from U.S. Vice President JD Vance. The Senate's version of the megabill included substantial modifications, such as deeper cuts to Medicaid and a proposed $5 trillion hike in the debt limit—significantly higher than the $4 trillion increase initially suggested in the House version. These amendments raised concerns among many House Republicans, yet leadership chose not to make further adjustments to the megabill, opting to maintain its timeline.
This situation is developing rapidly. For the latest updates and further developments on this critical piece of legislation, please check back frequently.
