Overview

• The House of Representatives passed a $4 trillion budget reconciliation bill by a narrow 215-214 vote, marking a major legislative win for Speaker Mike Johnson and President Donald Trump.
• The bill includes significant tax cuts, including making Trump's 2017 individual rate cuts permanent, and aims to prevent a large tax hike set for next year.
• Key concessions were made to secure Republican support, including a $40,000 cap on state and local tax (SALT) deductions for blue-state moderates and Medicaid cuts sought by the Freedom Caucus.
• President Trump played a critical role in securing votes through direct pressure on holdouts and last-minute negotiations, working in tandem with Speaker Johnson's methodical leadership.
• The bill now heads to the Senate, where its fate remains uncertain as potential amendments and resistance from various interest groups are expected.