KUALA LUMPUR – US President Donald Trump signed a sweeping US$4.5 trillion (RM21.2 trillion) policy bill into law on July 4, enacting a cornerstone of his domestic agenda during a South Lawn ceremony timed with Independence Day celebrations in Washington.
The 870-page bill extends tax cuts first introduced in 2017 and adds new exemptions, including on tipped income, overtime, and social security. It also boosts defence spending by US$150 billion and allocates US$100 billion to immigration enforcement, including expanded border patrol and detention efforts.
To fund the measures, the bill, which Trump calls the “one big, beautiful bill”, slashes US$1 trillion from Medicaid and reduces food assistance programmes, changes that budget analysts say could see up to 12 million Americans lose health coverage.
Despite resistance from within his own party over the rising deficit and social cuts, Trump secured passage after weeks of lobbying Republican lawmakers. The bill passed the House 218-214, with only two Republicans joining all Democrats in opposition.
It cleared the Senate following a tiebreaking vote by Vice President JD Vance.
At the signing ceremony, Trump stood alongside Republican leaders and military families, declaring the bill a “triumph of democracy.” He thanked House Speaker Mike Johnson and other allies for helping push the measure through, describing it as “the biggest bill of its kind in history.”
He also dismissed criticism over its impact on welfare programmes.
“We made the largest spending cut, and yet you won’t even notice it,” Trump said, as reported by US media.
The event included a military flyover featuring B-2 bombers and F-35 and F-22 fighter jets – the same aircraft used in recent US strikes on Iranian nuclear sites. The display was followed by a fireworks show at the National Mall, further framing the bill’s passage as a patriotic achievement.
The White House says the tax cuts will fuel economic growth, but the Congressional Budget Office estimates the bill will add US$3.3 trillion to the deficit over the next decade, not including debt servicing costs. The Tax Policy Centre also found that 60% of the benefits from the tax changes would go to Americans earning over US$217,000 annually.
Democrats have labelled the bill an attack on healthcare and working families, with House Minority Leader Hakeem Jeffries calling it “a gift to the rich at the expense of the poor.” – July 5, 2025