US House narrowly passes Donald Trump's sweeping tax and spending bill, sends on to Senate, two Republicans vote no

The Republican-led US House of Representatives, on Thursday, narrowly passed a sweeping tax and spending bill that would enact much of President Donald Trump's policy agenda and saddle the country with trillions of dollars in debt.

The bill would fulfill many of Trump's populist campaign pledges, delivering new tax breaks on tips and car loans and boosting spending on the military and border enforcement. It will add approximately $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the nonpartisan Congressional Budget Office, reported Reuters.

The bill was passed in a knife's edge vote, with 215 Representatives voting for it and 214 passing a vote against it.

All of the chamber's Democrats and two Republicans voted against the bill, which Trump called “one, big, beautiful bill”. A third Republican voted “present.”

The bill was passed at a time when concerns over the US debts are growing, which has reached 124 per cent of its GDP, as per Reuters. The vote came after a two-day marathon debate among lawmakers.

However, before Donald Trump can sign it into law, the package needs to also win approval in the Republican-controlled Senate.

What will the US tax and spending bill do?

The 1,000-page legislation would extend corporate and individual tax cuts passed in 2017 during Trump's first term in office, cancel many green-energy incentives passed by Democratic former President Joe Biden and tighten eligibility for health and food programs for the poor. It also would fund Trump's crackdown on immigration, adding tens of thousands of border guards and creating the capacity to deport up to 1 million people each year.

Growing debt concerns in the US

The bill was passed despite economic concerns in the US, with the debt rising through the roof.

As per Reuters, the government has recorded budget deficits every year of this century, as Republican and Democratic administrations alike have failed to bring spending in alignment with revenue.

However, Republican supporters of the bill had argued that failure to pass it would have raised taxes for many American households.

They also plan to use the bill to raise the federal government's debt ceiling, a step Congress must take by summer or risk triggering a devastating default.