How Will Trump Tax Cuts 2025 Impact U.S. Debt?
THE U.S. HOUSE of Representatives narrowly passed a sweeping budget blueprint on April 10, setting the stage to extend Donald Trump’s 2017 tax cuts after a delay caused by internal dissent. Despite opposition from all Democrats and two Republicans over spending concerns, speaker Mike Johnson pushed it through with a 216 to 214 vote one day behind schedule.
“Congratulations to the House on the passage of a Bill that sets the stage for one of the Greatest and Most Important Signings in the History of our Country,” Trump wrote on Truth Social
The American Hotel and Lodging Association welcomed the budget resolution, which proposes $5 trillion in tax cuts and adds about $5.7 trillion to the federal debt over the next decade.
Rosanna Maietta, AHLA’s president and CEO, praised Speaker Mike Johnson and Senate Majority Leader John Thune for advancing a budget resolution aimed at preventing tax hikes on American workers and small businesses in the hotel and lodging industry.
“This is a critical step to stave off the expiration of important tax provisions and to provide our members, the majority of whom are small business owners, with the level of certainty they need, particularly as many are still recovering from the impacts of the COVID-19 pandemic,” she said. “We look forward to continuing to work with lawmakers to build a brighter future for hotel operators and employees seeking upward mobility and exciting lifelong careers.”
Johnson had initially planned to pass the bill on April 9, but internal GOP objections over insufficient spending cuts forced a delay. With a slim majority, he had little room for defections. Several Republicans have publicly opposed the Senate bill.
House Budget chair Jodey Arrington, R-Texas, called it “unserious” and “disappointing.”
Democrats couldn't block the resolution Saturday morning but pushed back by forcing votes on amendments, including protections for Medicare and Medicaid, changes to Trump’s tariffs, and funding for child and elder care.
The final bill, passed by the Senate on April 5, includes at least $4 billion in spending cuts—a sharp drop from the earlier House plan calling for $1.5 trillion.
At its core, the bill extends Trump’s 2017 tax cuts, a centerpiece of his first-term agenda. He has also floated tax breaks on overtime pay, tips, and Social Security income—proposals that analysts warn could push the total cost above $11 trillion.
Beyond tax policy, Republicans plan to use the budget framework to address the looming debt ceiling. With U.S. debt at $36.6 trillion, Congress must act by summer to avoid default.
Meanwhile, Bank of America card data shows U.S. tourism spending is trailing 2023 and 2024 levels—fueled by post-pandemic demand—across lodging, tourism, and airlines.
