President Trump signed a comprehensive reconciliation package into law, incorporating tax cuts and Medicaid reductions, marking a major political achievement for his administration following extensive negotiations with Congressional Republicans.
President Trump finalized a significant legislative accomplishment on Friday by signing into law an expansive reconciliation package that includes extended tax cuts and phased-in reductions to Medicaid, culminating after months of challenging negotiations with Republicans on Capitol Hill.
The signing took place during a Fourth of July military family picnic at the White House. Trump had aimed to have the legislation ready by Independence Day, a goal that seemed uncertain just days before. “We made promises, and it’s really promises made, promises kept, and we’ve kept them,” Trump declared from the balcony overlooking the South Lawn. He added, “This is a triumph of democracy on the birthday of democracy. And I have to say, the people are happy.”
First Lady Melania Trump, various Cabinet officials, and numerous Republican lawmakers, including Speaker Mike Johnson (R-La.), House Majority Leader Steve Scalise (R-La.), House Majority Whip Tom Emmer (R-Minn.), and Rep. Jason Smith (R-Mo.), attended the ceremony. The event featured added spectacles such as a flyover by two B-2 bombers. These aircraft recently carried out strikes on Iranian nuclear facilities last month.
The Senate passed its version of the bill early Tuesday morning, with Vice President Vance casting the tie-breaking vote after three Republicans opposed it. The House approved the legislation without amendments on Thursday afternoon, following extended efforts to secure support from hesitant members during a procedural vote. The final House vote was close at 218-214, with two Republicans voting against it.
Friday’s bill signing capped off a series of favorable developments for Trump, including achievements in foreign policy, a strong jobs report, and historic low apprehension numbers at the southern border. “We’ve I think had probably the most successful almost six months as a president and the presidency,” Trump stated. “I think they’re saying it was the best six months, and I know for a fact they’re saying the last two weeks, there has never been anything like it as far as winning, winning, winning.”
The legislation incorporates key elements from Trump’s 2024 campaign platform. It extends the tax cuts originally enacted in 2017, which were due to expire later this year. It also eliminates certain taxes on tipped wages and raises the cap on state and local tax (SALT) deductions, a contentious issue during negotiations.
The bill allocates $150 billion for border wall funding, immigration enforcement, and deportations, alongside $150 billion in new defense spending for projects like shipbuilding and the “Golden Dome” missile defense initiative. It cuts green energy incentives while boosting domestic fossil fuel production. The legislation also increases the debt ceiling by $5 trillion, alleviating concerns about a potential federal default.
Democrats have criticized the bill for its cuts to low-income health and nutrition programs, arguing that these reductions offset tax cut revenue losses but also threaten health coverage for millions. House Minority Leader Hakeem Jeffries (D-Calif.) delivered an extensive speech opposing the bill, claiming it would harm working families. Trump dismissed Jeffries’ remarks and Democratic criticism as a “con job.”
Despite negative polling, White House officials have downplayed criticism, contending that public opinion will improve once Republicans adequately inform constituents about the bill’s benefits, according to The Hill.