In a dramatic pre-dawn vote on Thursday, the U.S. House of Representatives passed a sweeping tax and spending bill by a narrow 215-214 margin, sending it to the Senate for further consideration. The nearly 1,100-page package marks one of the most consequential pieces of legislation this session, promising broad changes to the federal tax code, social safety net programs, and energy policy.

The legislation includes an extension of major tax cuts first enacted in 2017, the rollback of numerous green energy incentives, expanded funding for border enforcement, and new work requirements for Medicaid recipients, set to take effect in late 2026. It also includes a provision to raise the federal debt ceiling by $4 trillion, a move designed to avoid a looming default.

Supporters argue the bill is a necessary step toward simplifying the tax system, bolstering national security, and encouraging personal responsibility. But fiscal experts and political opponents warn it could severely strain the federal budget. According to the Congressional Budget Office, the bill would add approximately $3.8 trillion to the national debt over the next decade. As of May, the U.S. debt has already climbed to 124% of gross domestic product, stoking concern among investors and economists. In response to the bill’s passage, financial markets reacted swiftly: the dollar weakened, and long-term Treasury yields rose.

Democratic lawmakers uniformly opposed the bill, describing it as an economically reckless giveaway to wealthy Americans at the expense of the working class. “This isn’t tax reform,” said Rep. Jim McGovern (D-MA) on the House floor. “It’s a tax scam designed to steal from the American people and give to millionaires and billionaires.”

Even within the Republican ranks, the bill faced steep resistance. House leaders were forced to broker last-minute compromises with both conservative and centrist members to secure the votes. Concessions included enhanced deductions for state and local taxes, benefiting residents in high-tax states, and a faster timeline for implementing Medicaid work requirements.

The Senate is expected to take up the bill in the coming weeks, where it may undergo changes before a final vote. Senate leadership has signaled plans to use the budget reconciliation process, allowing them to pass the legislation with a simple majority.

As debate continues, the bill has become a flashpoint for broader questions about the role of government in economic policy, the future of social safety nets, and the long-term fiscal health of the country.