Trump Signs Sweeping Tax And Spending Bill That CBO Says Will Add $3.3 Trillion To US Deficit, Cut Health Coverage For 11.8 Million Americans

On Friday, President Donald Trump signed a sweeping tax and spending bill into law during a July 4 picnic at the White House, touting it as a historic win, even as the Congressional Budget Office projects it will significantly widen the federal deficit and leave millions uninsured.

What Happened: Flanked by Republican lawmakers and Cabinet members, Trump signed the multitrillion-dollar package on the White House driveway, using a ceremonial gavel gifted by House Speaker Mike Johnson (R-La.), reported the Associated Press.

"America's winning, winning, winning like never before," Trump declared, celebrating the bill's passage alongside a flyover of fighter jets and bombers. "Promises made, promises kept and we've kept them."

The legislation extends Trump's 2017 tax cuts, eliminates taxes on tips and Social Security income, boosts immigration enforcement and imposes $1.2 trillion in cuts to Medicaid and food assistance.

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Despite strong Republican support, Democrats unanimously opposed the bill. 

AFL-CIO president Liz Shuler called it "the worst job-killing bill in American history," accusing Trump of handing a $5 trillion gift to the wealthy while stripping support from working families.

Why It's Important: According to the Congressional Budget Office, the bill is projected to add $3.3 trillion to the national deficit over the next decade and cause 11.8 million Americans to lose health coverage, largely due to Medicaid cuts. 

Critics also warn it could erode gains made under Presidents Barack Obama and Joe Biden. Trump, however, defended the bill as pro-growth: "Our country is going to be a rocket ship, economically."

With no Democratic support and tight Senate margins, the package's passage marks a key ideological pivot — and a flashpoint for the 2026 midterms, the report said.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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