The Financial Times reports that the U.S. House of Representatives has passed a budget resolution proposing $4.5 trillion in tax cuts and $2 trillion in spending reductions over the next decade.

The legislation, a central piece of President Donald Trump’s economic agenda, passed by a narrow 217-215 vote after House Speaker Mike Johnson worked to secure support from Republican holdouts.

The resolution outlines major tax reductions, increased military and border security funding, and spending cuts that may impact Medicaid and the Supplemental Nutrition Assistance Program (SNAP). It also raises the debt ceiling by $4 trillion, temporarily easing concerns over a potential government default.

The budget resolution does not eliminate taxes on tips or enact specific tax policies. Instead, it sets the stage for lawmakers to craft future legislation, including potential extensions of the 2017 Tax Cuts and Jobs Act (TCJA) and other proposed tax breaks.

According to The Washington Post, the House budget resolution also includes several tax-related provisions beyond the proposed elimination of taxes on tips and the potential extension of the TCJA.

The resolution outlines plans to eliminate taxes on Social Security benefits and overtime wages while also raising the cap on state and local tax (SALT) deductions.

Additionally, it calls for lowering the corporate tax rate and closing the carried interest loophole. Collectively, these measures could add up to $11.25 trillion to the national debt over the next decade, according to estimates from the Committee for a Responsible Federal Budget.

While some moderate Republicans expressed concerns about increasing the national debt, most ultimately backed the measure. Democrats, however, unanimously opposed it, arguing that it prioritizes tax cuts for the wealthy while reducing essential public services.

With sharp divisions in Congress, the bill now moves to the Senate, where it is expected to face significant negotiations and possible revisions before reaching final approval.