FirstFT: Trump’s ‘big, beautiful bill’ passes the House of Representatives

Source: Financial Times | Original Published At: 2025-07-03 21:32:06 UTC

Key Points

• Trump’s tax and spending bill passes House with narrow 218-214 vote
• Legislation extends tax cuts while cutting Medicaid and social welfare programs
• Rolls back Biden-era clean energy tax credits, increases military spending
• China criticizes US-Vietnam trade deal as part of broader export containment strategy
• Pakistan seeks closer ties with Trump administration through crypto mining and rare earths

Donald Trump has secured a political victory after the House of Representatives gave final approval to his flagship tax and spending legislation.

With the bill’s passage, Trump plans to sign it into law at 5pm today (local time), according to White House press secretary Karoline Leavitt. The 218 to 214 vote by the House yesterday came after Democratic minority leader Hakeem Jeffries spoke against what he called the “ugly” legislation for a record eight hours and 44 minutes, in a symbolic act of defiance.

The legislation extends vast tax cuts from Trump’s first administration, paid for in part by steep cuts to Medicaid, the public health insurance scheme for low-income and disabled Americans, and other social welfare programmes. The bill will also roll back Biden-era tax credits for clean energy, while scaling up investment in the military and funds for Trump’s crackdown on immigration. It has been projected to add more than $3tn to the US debt over the long term, raising worries among economists.

China has hit out at the US-Vietnam trade deal, amid concerns in Beijing that Trump is using his “liberation day” tariff negotiations with third countries to curb its export machine. The US president’s focus on punishing “trans-shipping” of goods — widely believed to be aimed at Chinese re-exports to the US — has drawn Beijing’s ire.

Cash-strapped Pakistan is hoping to get on Donald Trump’s good side and stave off hefty trade tariffs. Its strategy? Pitching itself as a bitcoin mining hub, a source of rare earths and offering its support for a Nobel Peace prize for the US president.

A two-day gathering of the BRICS group of developing countries begins Sunday in Rio de Janeiro, Brazil, with India’s Modi and Chinese Premier Li Qiang among the leaders in attendance.