The Republican-controlled U.S. House of Representatives narrowly passed a sweeping tax and spending bill on Thursday. The bill enacts much of former President Donald Trump's policy agenda. It also adds trillions of dollars to the national debt.

The bill delivers on many of Trump's populist campaign promises. It includes new tax breaks on tips and car loans. It increases spending on the military and border enforcement. The nonpartisan Congressional Budget Office said the bill will add about $3.8 trillion to the federal government's $36.2 trillion debt over the next decade.

Trump called the legislation “one, big, beautiful bill.” The House passed it by a 215-214 vote. All Democrats and two Republicans voted against it. One Republican voted “present.”

The Senate, which is also under Republican control, must pass the bill before Trump can sign it into law. The House vote followed an intense push that kept lawmakers debating through two consecutive nights.

The 1,000-page bill extends corporate and individual tax cuts from Trump’s 2017 law. It cancels many green-energy incentives passed under former President Joe Biden. It tightens eligibility for health and food assistance programs for low-income Americans. The bill funds Trump’s immigration crackdown. It adds tens of thousands of border guards. It authorises the deportation of up to 1 million people each year.

The bill passed despite rising concerns over U.S. debt. Debt now stands at 124% of GDP. Moody’s downgraded the United States’ credit outlook last week.

The government has posted budget deficits every year this century. Both Republican and Democratic presidents have failed to align spending with revenue.

Interest payments made up one out of every eight dollars the federal government spent last year. That amount exceeded military spending. The CBO projects that share will rise to one out of every six dollars over the next ten years. Costs for healthcare and pensions will rise as the population ages, even without the new legislation.

Investors have started selling off U.S. assets. They feel concerned about the nation’s fiscal position and Trump’s unpredictable tariff policies.

Representative Thomas Massie of Kentucky, one of two Republicans who opposed the bill, said, “We’re not rearranging deck chairs on the Titanic tonight. We’re putting coal in the boiler and setting a course for the iceberg.”

Republicans argued that failing to pass the bill would raise taxes for many Americans. They also plan to use the bill to raise the federal debt ceiling. Congress must do so by summer or risk a default.

Representative Stephanie Bice, a Republican from Oklahoma, said on Wednesday, “The success of the country depends on it.” She added, “These are pro-growth objectives that the president is in favour of, and so we’re moving forward.”

House Speaker Mike Johnson had a narrow 220-212 majority. He could not afford to lose more than a few Republican votes.

Conservative Republicans pushed for deeper spending cuts. Centrists resisted. They feared the cuts would fall too hard on the 71 million Americans enrolled in Medicaid.

Johnson adjusted the bill to win over conservatives. He moved up the start date for new work requirements for Medicaid to the end of 2026. That change would remove several million people from the program, according to the CBO. The bill would also penalise states that expand Medicaid in the future.

To gain support from centrist Republicans in high-tax states like New York and California, Johnson expanded a tax deduction for state and local taxes.

Democrats criticised the bill. They said it favours the wealthy while hurting working Americans. The CBO found it would lower income for the poorest 10% of Americans and raise income for the top 10%.

Representative Jim McGovern, a Democrat, said, “This bill is a scam, a tax scam designed to steal from you, the American people, and give to Trump’s millionaire and billionaire friends.”

Republicans hold a 53-47 majority in the Senate. That chamber is not expected to take up the bill until early June. Senate Republicans said they might make significant changes before passing it.