Trump Enacts Key Policy Legislation at Independence Day Celebration

President Trump signing his large domestic policy bill into law during a ceremony on Friday afternoon at the White House, a day after the House narrowly passed it.Credit...Valerie Plesch for The New York Times

On Friday, President Trump enacted a comprehensive domestic policy bill, marking a significant political achievement that coincided with Independence Day festivities.

During a flyover by B2 bombers, the same aircraft involved in the recent strikes on Iran, Mr. Trump emphasized the substantial tax reductions featured in the legislation while minimizing the bill's unpopularity in public opinion polls and the possible repercussions of budget cuts.

"The largest spending cut, and yet, you won’t even notice it," Mr. Trump remarked as he stood alongside First Lady Melania Trump on the White House balcony.

"The people are happy, they’re happy," he continued.

Mr. Trump pointed out several provisions within the extensive bill that he believes resonate with the public, specifically mentioning the enhancement of the Child Tax Credit and a decrease in estate taxes. He only addressed the significant spending reductions affecting programs such as Medicaid and food assistance in broad terms.

The legislation poses considerable risks for the Republican Party. It is projected that the law will lead to a dramatic increase in the national debt by trillions of dollars, and the reductions to Medicaid may result in an additional 11.8 million individuals lacking health insurance by 2034, contradicting Mr. Trump's earlier commitment this year not to "touch" the entitlement.

Democrats in opposition have strongly criticized the bill, labeling it as an attempt to cut essential government programs to finance tax breaks for the wealthiest Americans. They have made it evident that they will hold Mr. Trump and Republican lawmakers accountable for advancing these and other initiatives that polls indicate are highly unpopular.

Republican lawmakers, who had previously clashed over Mr. Trump's bill, ultimately came together in support of it, concerned about the political fallout of opposing a president who demands unwavering loyalty and has threatened repercussions for Republicans who dissent from the legislation.

Numerous House Republicans had signaled their unwillingness to support the version of the bill that eventually passed through the Senate. Ultimately, only two members refrained from voting in favor of the legislation. Conservative dissenters hinted at vague promises they had received that Mr. Trump would address their primary concerns via executive orders or through the implementation of the bill by his administration.

The bill extends tax cuts enacted early in Mr. Trump’s first term that had been scheduled to expire this year, while adding new ones that Mr. Trump promised during the 2024 campaign, at a cost of $4.5 trillion. Many economists have estimated that the wealthiest Americans would see the most generous tax reductions.

The bill also increases funding for defense and border security and cuts nearly $1 trillion from Medicaid, along with reductions to food assistance for the poor and other government aid. The legislation also phases out clean-energy tax credits passed under former President Joseph R. Biden Jr. that Mr. Trump and conservative Republicans have long decried.

The law includes a $5 trillion increase in the debt limit, a measure that Republican lawmakers are typically unwilling to support but nevertheless voted for over the objections of deficit hawks and conservatives in their ranks.

Michael Gold contributed reporting.

Chris Cameron is a Times reporter covering Washington, focusing on breaking news and the Trump administration.

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