U.S. President Donald Trump has signed into law a wide-ranging tax and spending bill, marking the most significant legislative action of his second term.
The ceremony, staged on the South Lawn of the White House on Independence Day, featured military flyovers and a large gathering of supporters, echoing the tone of a campaign rally.
The legislation—titled the “One Big Beautiful Bill Act“—combines substantial tax reductions with deep federal spending cuts. It passed the Republican-controlled House of Representatives by a narrow margin on Thursday evening, with 218 votes in favour and 214 against. All Democrats and two Republican lawmakers opposed the bill.
At the signing event, Trump was joined by House Speaker Mike Johnson and Senate Majority Leader John Thune, who were instrumental in guiding the bill through Congress. Flanked by military families and senior administration officials, Trump praised the package as the “largest tax cut, the biggest spending cut, and the strongest investment in border security in American history”.
“I’ve never seen people so happy in our country,” Trump said, referring to what he described as broad support among civilians, military personnel, and workers. “So many different groups of people are being taken care of.”
The event featured a flyover of stealth bombers and fighter jets, some of which were involved in recent U.S. military operations targeting Iranian nuclear sites. The visual display underscored the administration’s emphasis on military strength and national security.
The bill makes permanent the tax cuts introduced during Trump’s first term in 2017 and allocates new funding for border enforcement initiatives. It also includes measures that are projected to significantly reduce federal expenditure on welfare and healthcare programmes. According to a nonpartisan Congressional Budget Office analysis, the legislation will add over $3 trillion to the national debt, which currently stands at $36.2 trillion.
Republican leaders maintain that the bill will stimulate economic growth, with proponents arguing it will incentivise business investment and job creation. However, the legislation has drawn strong criticism from Democrats, who contend it disproportionately benefits high-income earners while removing protections for vulnerable groups.
House Democratic Leader Hakeem Jeffries led a protracted opposition effort, delivering a record-setting speech of eight hours and 46 minutes on the House floor. Jeffries characterised the bill as a “giveaway to billionaires” that would undermine healthcare access and cut food aid for millions of low-income Americans.
“This was a full betrayal of the American people,” said Democratic National Committee Chair Ken Martin in a statement following the signing. “Donald Trump sealed the fate of the Republican Party, cementing them as the party for billionaires and special interests—not working families.”
The new law is expected to impact Medicaid, the federal-state health programme for low-income Americans, with analysts forecasting that several million people may lose coverage due to changes in eligibility criteria and federal matching rates. Other provisions include the restructuring of food assistance programmes and the elimination of certain subsidies previously maintained under the Affordable Care Act.
Despite internal Republican unease over the scale of the cuts and long-term fiscal consequences, party discipline largely held. Only Representatives Brian Fitzpatrick of Pennsylvania and Nancy Mace of South Carolina broke ranks to oppose the bill.
The political implications of the legislation are likely to reverberate into the 2026 midterm elections. Democrats are expected to centre their campaign messaging on the social impact of the spending reductions, while Republicans are positioning the bill as a cornerstone of economic recovery and border security.
The Independence Day timing of the signing allowed the White House to frame the law as a patriotic achievement. After delivering his remarks, Trump posed for photographs with congressional allies and Cabinet members, then moved into the crowd to greet supporters.
With the bill now enacted, federal agencies will begin implementing its provisions over the coming months. Key elements, such as tax code adjustments and immigration enforcement directives, are expected to be rolled out before the end of the calendar year.
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