The U.S. House of Representatives narrowly passed a contentious tax and spending bill this week, igniting debates over fiscal responsibility and social equity. The legislation extends Trump-era tax cuts while slashing Medicaid eligibility and clean energy incentives, drawing criticism from economists and lawmakers alike.
Approved by a 215-214 vote, the bill allocates funds for defense and immigration enforcement but reduces support for low-income households. Senior economist Dean Baker warned it could add $3 trillion to the national debt while stripping health coverage from 13 million Americans.
Senate Minority Leader Chuck Schumer criticized the legislation as a "billionaire boondoggle," highlighting risks to rural hospitals and renewable energy development. The Congressional Budget Office projects widening wealth gaps, with resources shifting from the bottom 10% to top earners.
Market tensions intensified as 30-year Treasury yields hit 5.15%, reflecting investor concerns over the $36.2 trillion national debt. Federal Reserve Governor Christopher Waller called current deficit levels "unsustainable," urging fiscal discipline to maintain global confidence in U.S. assets.
The bill now moves to the Senate, where its fate remains uncertain. Analysts warn that proposed Medicaid cuts could disproportionately impact Republican-leaning regions, potentially alienating former President Trump's core supporters.
