The House of Representatives narrowly passed Donald Trump's sweeping economic legislation, dubbed the "Big, Beautiful Bill," on July 3, 2025, following a dramatic and emotional debate. The final tally was at 218-214, with only two Republicans — Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania — voting against it. No changes were made to the 870-page bill that had already cleared the Senate. Speaker Johnson celebrated the bill’s passage as a pivotal achievement for Trump and the Republican Party.
A Bill With Far-Reaching Economic Consequences
The legislation is projected to reshape vast sectors of the U.S. economy. It includes a $5 trillion increase to the debt ceiling and policies that are expected to add $4 trillion to the national debt over the next decade, pushing the total U.S. debt past $40 trillion.
Tax and Spending Provisions
The bill includes several high-impact economic changes:
- Tax Reforms: Elimination of taxes on certain tips, increased state tax deductions.
- Education Cuts: Reductions in student loans and Pell Grant funding.
- New Financial Instruments: Introduction of “MAGA accounts” for children.
Healthcare and Clean Energy Sparks Major Controversy
Healthcare cuts emerged as one of the bill’s most contentious elements, with projections suggesting that millions of Americans could lose coverage. The government is expected to save hundreds of billions, but at the cost of expanded coverage losses. Health Care Select Sector SPDR Fund XLV may lose due to this scenario.
Clean energy provisions also triggered backlash, particularly from Tesla CEO Elon Musk. The final bill abandoned the most extreme proposals but marks a clear pivot away from federal support for renewable energy. A key change will take effect on Sept.30, when electric vehicle (EV) tax credits are slated to end.
Global X Autonomous & Electric Vehicles ETF DRIV may lose out of this move. The fund has 61.7% exposure to the United States. Tesla-heavy ETF Roundhill TSLA WeeklyPay ETF TSLW can also suffer because of it.
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Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports Health Care Select Sector SPDR ETF (XLV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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