House Speaker Mike Johnson and other Republican members after the signing of President Donald Trump's sweeping bill, in Washington, D.C., July 3, 2025. REUTERS/Jonathan Ernst
(Production: Alexandra Sarabia)
We are wrapping up our live coverage. Here's what happened on Thursday:
For more on the bill, read our coverage here by Bo Erickson, Richard Cowan, David Morgan and Andy Sullivan
Scavino is a White House aide.
FILE PHOTO: Trump in Des Moines, Iowa, January 15, 2024. REUTERS/Evelyn Hockstein
Buoyed by passage of his sweeping tax-cut and spending bill, Trump heads to Iowa Thursday evening, as part of what the White House said are celebrations marking America's 250th anniversary next year.
Trump was due to land in Iowa to speak to heartland voters who helped him win a second term hours after the U.S. House of Representatives narrowly approved his signature tax-cut measure.
White House officials hailed the bill's passage as a major victory, saying it would fuel an economic boom for Americans.
Trump will deliver a campaign-style speech at the Iowa State Fairgrounds in Des Moines, a familiar stop for presidential candidates in the early primary state. Trump won Iowa by 13 percentage points in the 2024 election.
"Significant parts of the speech will, of course, be celebrating the passage of this bill, and it's just a beautiful thing," said one senior White House official, who was not authorized to speak publicly.
Read more about Trump's Iowa trip here.
Even before the last vote on the sweeping tax-cut and spending bill was counted, Republicans and Democrats were gaming out how to use it to gain an edge in the 2026 midterm elections.
Midterm elections traditionally punish the party of the president in office.
Democrats hope to recapture control of at least one chamber of Congress where Republicans now hold full control. The bill's cuts to Medicaid and food assistance are ready ammunition for their future campaigns, they say.
"There are House Republicans now, this morning, who are about to sign their political obituary with this vote," Representative Brendan Boyle told Reuters hours before the legislation passed.
"They are literally walking the plank for Donald Trump," the Pennsylvania Democrat said.
Republicans contend that the legislation's permanent business tax breaks will goose the economy ahead of the November 2026 election, leading to job growth, higher wages and lower prices for groceries and energy.
"The American people are going to see great benefits from this bill, and they're going to know which party was fighting for them," said House Majority Leader Steve Scalise, the chamber’s No. 2 Republican.
Read more on the posturing for the 2026 midterms.
The Social Security Administration (SSA) said it is celebrating the bill's passage and the "long-awaited tax relief to millions of older Americans."
“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano in a statement.
“By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned."
The government agency administers benefits such as retirement and disability, manages supplemental security income and enrols people in Medicare.
The SSA said the bill includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, and provides an enhanced deduction for taxpayers aged 65 and older.
Wall Street rallied to record highs Thursday, as chip-maker Nvidia rose closer to a $4 trillion valuation and a surprisingly strong U.S. jobs report cheered investors.
The S&P 500 and Nasdaq closed at record highs, notching a third week of gains. The Dow closed up 0.77%, near its own record.
"We are seeing a real bout of irrational exuberance; the stock market is very biased towards optimism," said Kristina Hooper, Chief Market Strategist at Man Group in New York.
The rally has been fueled by retail investors, who are largely ignoring the inflationary pressure on the horizon, uncertainty around tariffs and "are focused on the tangible, which is today's jobs report," she said.
Large tax cuts and increased government spending can boost demand in the economy. This can add inflationary pressure, especially when the economy shows signs of strength such as the latest job report.
"Some data points like the job report are positive and charming, but if we just take a step back, the picture is not that great," said Alex Morris, CEO of F/m Investments.
Read more here.
Johnson is congratulated by other House members on Capitol Hill, July 3, 2025. REUTERS/Jonathan Ernst
When Republican House Speaker Mike Johnson was reelected to the chamber's top job in early January by a razor-thin margin, he promised two things - to pass Trump's tax cut bill and roll back regulations.
"We're going to drastically cut back the size and scope of government," the conservative Christian lawyer said then.
Johnson and the Trump administration pushed reticent Republicans hard to back the bill in a 30-hour session. Ultimately, they lost only two votes, scoring a 218 to 214 victory.
The mild-mannered Louisiana representative, 53, was vaulted from obscurity into one of Washington's most powerful jobs during three weeks of turmoil in October 2023, when Republicans forced out Kevin McCarthy.
Then, Johnson was best known as the author of an unsuccessful appeal by 126 House Republicans to get the Supreme Court to overturn election results in states that Trump had lost in the 2020 presidential election.
First elected in 2016, he is the least experienced House Speaker in decades, as Reuters wrote at the time.
Now, he's winning praise from Republicans, including Treasury Secretary Scott Bessent, after passing Trump's tax bill through the House.
RICHARD FRANCIS, SENIOR DIRECTOR, FITCH, NEW YORK:
“Fitch has long expected significant tax cuts in its baseline fiscal projections and the passage of the bill won’t significantly change our baseline. We expect the general government deficit to rise next year to above 7% of GDP and debt to approach 120% of GDP by 2026.”
RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY:
"It was certainly expected. The administration has shown they were able to marshal the votes in both the Senate and the House for their plans. Investors who have driven this market higher are betting that the potential for growth in the economy from the bill exceeds the potential for inflation. It's probably a process that has to play out as the tariff policies move forward and as the tax policy is put into place. I don't know if it's possible, particularly in light of the labor numbers today, to provide this level of stimulus and not have it be inflationary. The one wild card could be a significant drop in energy prices."
JED ELLERBROEK, PORTFOLIO MANAGER, ARGENT CAPITAL MANAGEMENT, ST LOUIS, MISSOURI:
"It's positive for GDP growth next year, for corporate earnings next year, and for the stock market near term as well, as economist projections show like a 30 to 50 basis point benefit to GDP growth next year, which would boost probably corporate earnings by a couple percent."
(Reporting by Caroline Valetkevitch, Davide Barbuscia and Carolina Mandl)
House Speaker Mike Johnson signed the bill following its passing in the House, while other members of Congress spoke to the press on Capitol Hill.
Johnson and other Republicans on Capitol Hill in Washington, D.C., July 3, 2025. REUTERS/Umit Bektas
Johnson signs the bill. REUTERS/Umit Bektas
The bill is seen after Johnson signs it. REUTERS/Umit Bektas
Representative Alexandria Ocasio-Cortez (D-NY). REUTERS/Ken Cedeno
Representatives Jonathan Jackson (D-IL) and Derrick Van Orden (R-WI). REUTERS/Ken Cedeno
FILE PHOTO: The annual fourth of July parade on Cape Cod, Massachusetts, 2022. REUTERS/Mike Segar
Republicans appear to have their work cut out for them when it comes to selling voters on the legislation, which they say makes good on the campaign promises that brought them and Trump victory in 2024.
POLLING SHOWS CONCERNS
Forty-nine percent of Americans oppose the bill, while only 29% favor it, according to recent polling by the nonpartisan Pew Research Center.
Pew said majorities expressed concern that the legislation would raise the budget deficit and hurt lower income people while benefiting the wealthy.
Nonpartisan forecasters say the legislation will add $3.4 trillion to the nation's $36.2 trillion in debt, a prediction that many Republicans contend overlooks future economic growth from business tax cuts.
MEDICARE CUTS
Internal Republican polling has also shown that even in districts held by the party, voters strongly oppose cuts to the Medicaid healthcare program for lower-income Americans and federally subsidized private health insurance.
The nonpartisan Congressional Budget Office predicts the bill could leave nearly 12 million Americans without health insurance.
Read more on the impacts the bill could have on 2026 midterms by our colleages David Morgan, Richard Cowan and Andy Sullivan.
House of Representatives Speaker Mike Johnson on Capitol Hill, July 3, 2025. REUTERS/Jonathan Ernst
As part of the tax package, lawmakers raised the U.S. government's $36.1 trillion borrowing limit that it was projected to hit later this summer by $5 trillion – a move that will assuage concerns over a possible default on U.S. debt.
Longer term, however, the bill has largely been seen as bad news for the U.S. bond market and the nation's fiscal health.
It will add $3.4 trillion to the nation's debt over the next decade, nonpartisan analysts have estimated.
That would exacerbate concerns over additional bond supply and dwindling demand for U.S. Treasuries that have been a key driver of financial markets in recent months.
"The bill contributes to some of the structural concerns around Treasuries, with respect to No. 1, ongoing fiscal deficit and elevated debt levels, and No. 2, inflation," said Mike Medeiros, macro strategist at Wellington Management.
BlackRock warned on Monday that foreign buyers were already souring on American debt.
Read the full analysis here.
Democrats were quick to condemn the bill and its expected impact on health care and poorer Americans:
GOVERNOR OF CALIFORNIA GAVIN NEWSOM:
Source: @GavinNewsom on X
SENATOR OF MASSACHUSETTS ELIZABETH WARREN:
Source: @SenWarren on X
FORMER HOUSE SPEAKER NANCY PELOSI:
Source: @SpeakerPelosi on X
Trump administration officials and elected Republicans quickly celebrated the bill's passage, touting the expected impact on the U.S. economy.
TREASURY SECRETARY SCOTT BESSENT
Source: @SecScottBessent on X
HOUSE SPEAKER MIKE JOHNSON
Source: @SpeakerJohnson on X
REP. MONICA DE LA CRUZ
The White House said Trump will sign the bill during a ceremony on July 4 at 5 p.m. ET (2100 GMT).
FILE PHOTO: Massie (R-KY) on Capitol Hill, June 27, 2025. REUTERS/Elizabeth Frantz
Brian Fitzpatrick of Pennsylvania and Thomas Massie of Kentucky are the two Republicans that voted against the bill.
Massie voted against the House’s first version of the tax bill in May, citing debt concerns.
FILE PHOTO: Fitzpatrick (R-PA) on Capitol Hill, February 7, 2023. REUTERS/Elizabeth Frantz
Fitzpatrick, who is one of the most moderate in his party, was a surprising "no" vote against advancing the bill Wednesday night. He raced off the floor and away from the chamber after he voted "no" that night.
The bill finally passed, after an approximately 30-hour House session marked by debate, back-room talks with Republican hardliners and chats with Trump and White House officials.
The GOP couldn't afford more than three Republicans to vote against the bill, and the party had to flip votes from five holdouts.
Here's a look at what it took to get the bill over the finish line, and to Trump's desk:
On Wednesday:
On Thursday:
Now, the bill is headed to Trump to sign, in time for his July 4 Independence Day deadline.
Republican House Members celebrate as Johnson announces the passing of the tax bill, on Capitol Hill, July 3, 2025. REUTERS/Jonathan Ernst
Trump's landmark tax and spending bill has passed, but what does that mean?
Here is a summary of some elements of the package, with cost and savings estimates by the Congressional Budget Office (CBO) or the Joint Committee on Taxation when available.
INDIVIDUAL TAX CUTS
BUSINESS TAX BREAKS
OTHER TAX CHANGES
IMMIGRATION AND JUSTICE
ENERGY, ENVIRONMENT, COMMUNICATIONS
MEDICAID AND OTHER HEALTH PROGRAMS
Republicans broke into a chant of "USA, USA, USA" on the House floor after the bill passed.
Two Republicans voted against the bill.
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Vanessa Balintec is a Live Page Journalist based in Toronto, Ontario. She helps create and curate multimedia posts for Reuters’ Live Pages — a scrolling feed of multimedia posts for some of the biggest stories of the day. She previously worked at various bureaus for CBC News. Contact: vanessa.balintec@thomsonreuters.com
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Kylie is the Global Live Pages Editor, leading a team providing real-time multimedia coverage of the biggest breaking stories worldwide. She previously worked on the UK Breaking News team, and spent eight years in Westminster as a UK political correspondent - a period which included the Scottish independence referendum, Brexit and several general elections. She originally joined Reuters as a graduate trainee and has also covered investment banking.
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