Editor’s note: The Hill’s Morning Report is our daily newsletter that dives deep into Washington’s agenda. To subscribe, click here or fill out the box below.
In today’s issue:
- Triumphant Trump poised for “big, beautiful” bill signing
- Jobs data surprises amid slowing economy
- SCOTUS to weigh ban on transgender school athletes
- Netanyahu seeks approval boost from Iran strikes
President Trump says the mammoth bill he will sign tonight at the White House will lead to America’s “golden age.” It’s a boast the Republican Party hopes it can successfully pitch to voters during next year’s elections.
“It’s going to make this country into a rocket ship,” Trump predicted as he left Washington to head to an event in Des Moines on Thursday. “It’s going to be really great.”
The House on Thursday narrowly approved a Senate-passed “big, beautiful bill” by 218 to 214 votes, with two Republicans voting “no” along with every Democrat. After arm-twisting and cajoling lawmakers overnight, Trump and Speaker Mike Johnson (R-La.) hailed what is likely to be the most significant piece of legislation enacted during the president’s second term.
It lurched to the finish line after weeks of near revolt among the GOP conservatives, who complained there were insufficient spending cuts, and moderates who argued, at least initially, that it was a political mistake to cut Medicaid spending and federal food assistance to offset lost revenues from extended tax cuts.
Rep. Thomas Massie (R-Ky.), a deficit hawk who has clashed with Trump, broke from his party to vote “no” on Thursday. Rep. Brian Fitzpatrick (R-Pa.) also voted against the measure on final passage.
Projected annual deficits and an increase of $5 trillion in the nation’s borrowing authority stirred howls of protest among some fiscal conservatives. Johnson could forfeit only three GOP votes and wound up squeaking by on Thursday. Senators were split 50-50; it took a tie breaking vote by Vice President Vance to pass the bill.
Trump used a mixture of vinegar and honey to win over skeptics. At nearly every major juncture, Trump worked to close the deal, winning members over and wearing them down, often without making concessions or altering his strategy.
The Speaker and Senate Majority Leader John Thune (R-S.D.) exited the legislative marathon as winners. Moderate Sen. Lisa Murkowski (R-Alaska) held out for sweeteners for her state during what she described as an “agonizing” decision to back the megabill after striking deals with Thune.
But recent national polls suggest the public is wary of Trump’s legislative approach. The White House and Republicans in Congress say they have ample time to sell the new law to constituents. Medicaid and food stamp reductions, for example, primarily take effect in 2027, after next year’s midterm elections.
Democrats argue that millions of Americans — from children to seniors, and in red and blue states — will be shortchanged by a Trump approach that nonpartisan and think tank studies suggest will provide the greatest benefits to corporations and wealthy individuals.
Sen. Chris Coons (D-Del.) predicted that for many families, “health care costs will go up, our emergency room wait times will go down and our nation as a whole will be sicker, hungrier and less well-off as a result of this bill.”
Democrats, including House Minority Leader Hakeem Jeffries (N.Y.), blasted their Republican colleagues this week. Jeffries on Thursday set a new House record of 8 hours and 44 minutes during a floor speech that enumerated what he described as deficiencies and pitfalls strung together as a Trump agenda.
Most Americans likely missed Jeffries’ speech ahead of a busy holiday weekend. But Rep. David Valadao (R-Calif.), seen as vulnerable for reelection in a blue-state district with a large population of Medicaid recipients, may have paid attention when Jeffries reminded his audience that the lawmaker 11 days ago vowed to oppose “harmful cuts to Medicaid” before voting Thursday to send the legislation to Trump’s desk.
“It was not an easy decision for me,” Valadao wrote hours later.
“This one big ugly Republican bill has put a target on their back,” Jeffries said.
Axios: Inside Jeffries’ decision to filibuster.
Democrats managed to change nothing about the legislation except perhaps its “One Big Beautiful Bill Act” title, which nonetheless remains its colloquial identity. Elon Musk, the tech billionaire and former head of the Department of Government Efficiency, did not have much of an impact on the legislation, either.
Musk, who broke with Trump in the spring, went on the offensive against the megabill, criticizing “every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history.” He predicted, “They will lose their primary next year if it is the last thing I do on this Earth.”
Democrats, who are searching for intraparty gravity to give them a lift, vow to craft campaign ads and hold rallies quoting Republican senators who denounced the details of Trump’s megabill — before voting “yes.”
Sen. Susan Collins (R-Maine), who was a “no” vote, along with Sen. Thom Tillis (R-N.C.), who announced a week ago that he won’t seek reelection, and Sen. Rand Paul (R-Ky.), who drew the line at raising the debt limit by trillions of dollars and sidestepping more than $36 trillion in national debt.
“There’s going to be some powerful ads,” said Senate Minority Leader Chuck Schumer (D-N.Y.) from the Senate floor while recounting what he said were real-world experiences shared by constituents.
“‘My daughter had cancer. She was doing fine. Well, all of a sudden, her health care was blown up,’” he said. “‘I worked at this rural hospital for 30 years. I put my heart into it because I wanted to help people. I was fired.’ Stuff like that is going to really matter.”
Trump, during a rally Thursday at the Iowa Fairgrounds, told supporters his party will target Democratic candidates for voting “no” on the “big, beautiful bill.”
“Not one Democrat voted for us,” he said. “I think we use it in the campaign that’s coming up — the midterms — because we’ve got to beat them. All of the things that we’ve given and they wouldn’t vote, only because they hate Trump. But I hate them, too, you know that?” he added to cheers from his audience. “I really do. I hate them. I cannot stand them because I really believe they hate our country.”
The Hill: Five takeaways from the House- and Senate-passed tax and spending package.
NEWS YOU CAN USE: The “big, beautiful bill” is massive. The legislation spans 887 pages, but The Hill’s team breaks down the most important cuts and programs.
What takes effect when? Tax cuts start now; program cuts are coming later. Here’s a timeline of provisions in the megabill.
Medicaid cuts are coming. The bill will make sweeping changes to health care, leaving millions without health insurance and threatening rural hospitals. Here’s who will be most affected.
Tax cuts: Here's a breakdown of the big tax provisions that are the megabill’s GOP centerpiece. Many taxpayers, depending on household income, can continue to benefit from the array of individual income tax cuts from the 2017 Trump tax package that are set to expire at year’s end.
But watch out: Trump said the megabill will eliminate taxes on Social Security. It does not. The tax bill does include a $6,000 “senior deduction.” See if you qualify.
Clean energy and artificial intelligence: The bill curbs billions of dollars in spending for clean energy, resulting in increased prices for home solar power, energy efficiency and other green technologies.
Ahead of sending the bill to the House, senators voted to remove a provision barring states from regulating AI.
SMART TAKE with NewsNation’s BLAKE BURMAN
While the president and Republican leaders cheered the One Big Beautiful Bill Act’s passing, some budget hawks within the party wished the bill had gone further to cut the deficit. One of those was Rep. Marlin Stutzman (R-Ind.), who called parts of the bill “unacceptable” earlier in the week, but eventually voted “yes.”
“We’re going to have to rein in spending. We’re going to have to make reforms,” Stutzman told me after the bill’s passing. “Tariffs is part of it, so it’s going to be a multifaceted solution.”
Stutzman said he ultimately voted yes for the bill’s tax policy and border funding. Another reason: the Golden Dome, as his district likely stands to benefit from the $25 billion outlay. A reminder that for all the conversations involving the key themes you read about in national headlines, members had to weigh political philosophies against local impacts.
Burman hosts “The Hill” weeknights, 6p/5c on NewsNation.
3 THINGS TO KNOW TODAY
▪ CEOs are becoming more candid while projecting white-collar jobs that will be replaced by AI.
▪ The Smithsonian’s National Air and Space Museum will lose its display of Space Shuttle Discovery to the Johnson Space Center in Houston. The shuttle shuffle is tucked into the “big, beautiful bill” Trump will sign tonight.
▪ Vance, as Republican Party finance chair, is picking up the pace of his summer fundraising. He’ll be in San Diego on Monday and in hot spots in Massachusetts and Wyoming later this month.
LEADING THE DAY
© The Associated Press | Nam Y. Huh
📊 ECONOMY: The unemployment rate in June dropped a notch to 4.1 percent from 4.2 percent in May, and the economy added 147,000 jobs last month, surprising many analysts who said Thursday they had anticipated signs of a more rapidly weakening labor sector.
The sturdy government data erased market forecasts of possible Federal Reserve interest rate cuts this month and perhaps in September, analysts told news outlets during interviews.
“The solid June jobs report confirms that the labor market remains resolute and slams the door shut on a July rate cut,” Jeffrey Schulze, head of economic and market strategy at ClearBridge Investments, told CNBC.
But analysts insist June’s upbeat numbers did not counter indications of a slowing economy in which workers need longer periods to find new positions and large companies are hesitant to make commitments amid tariff and geopolitical uncertainties.
“The headline job gains and surprising dip in unemployment are undoubtedly good news, but for job seekers outside of healthcare & social assistance, local government, and public education, the gains will likely ring hollow,” wrote Cory Stahle, economist at Indeed Hiring Lab.
Many of Trump’s proposed high tariffs on imported goods are on pause until July 9. The administration previously said it would announce trade pacts after enactment of the GOP’s “big, beautiful bill.” Economists fear that tariffs could act as a drag on growth and ignite another bout of inflation.
The administration plans to send letters to trading partners to communicate tariff rates, Trump told reporters early today. He said about “10 or 12” letters would be sent today, followed by more letters over the “next few days.”
The U.S. economy has demonstrated resilience amid Trump’s trade policies and seesawing levy announcements, which have drastically raised American import tax rates and uncertainty about the future of trade.
The Labor Department reported Thursday that jobless claims for the week ending June 28 fell by 4,000 to 233,000, less than the 241,000 that analysts forecast. Applications for unemployment aid are considered a proxy for layoffs.
▪ The Hill: Layoffs in the U.S. reach their highest levels since 2020.
▪ The New York Times: How health care remade the U.S. economy: Medicine is now the nation’s largest employer.
▪ The Washington Post: Why some fear U.S. data on the economy is losing its integrity.
🎒 SCHOOLS AND SUMMER: The Trump administration is withholding more than $6 billion in federal money for after-school and summer programs, throwing organizations and schools into chaos.
“It’s catastrophic,” Jodi Grant, executive director of the Afterschool Alliance, told The New York Times. She estimated that the approximately $1.3 billion federal dollars for after-school and summer-school programs support 1.4 million students, mostly those of lower income. They make up about 20 percent of all students in after-school programs nationally.
WHERE AND WHEN
- Happy JULY 4!! 🎆
- The president returned to the White House from Iowa before 1 a.m. He plans to sign the “Big Beautiful Bill Act” into law at 5 p.m. EDT. The president and first lady Melania Trump will host a military family picnic on the South Lawn at 5 p.m. to mark the Independence Day holiday and will attend a South Lawn celebration event at 9 p.m., also on the South Lawn. Trump and the first lady will depart the White House at 9:45 p.m. for their property at Bedminster, N.J., arriving at 11:30 p.m. The president is scheduled to return to the White House on Sunday.
- The House convenes Monday at 10 a.m.
- The Senate convenes Monday for a pro forma session at 10:15 a.m.
ZOOM IN
© The Associated Press | Jae C. Hong
SUPREME COURT: The Supreme Court agreed Thursday to decide whether states can ban transgender athletes from competing on girls’ and women’s school sports teams. The justices said they would hear appeals from Republican leaders in Idaho and West Virginia defending their state bans. A decision is expected by next summer.
The move sets up another major dispute over transgender rights before the conservative-majority court that recently upheld Tennessee’s ban on gender-affirming care for minors.
The University of Pennsylvania’s decision this week to sign a resolution agreement with the Trump administration barring transgender women from its women’s sports teams signals other schools facing disciplinary action from the White House may be prepared to take similar steps.
▪ CBS News: The Trump administration's “divide and conquer” approach to LGBTQ rights.
▪ NBC News: The Supreme Court on Thursday allowed Trump to move ahead with plans to send eight convicted criminals to South Sudan.
▪ Politico: The Supreme Court will review the scope of states’ immunity after a pair of bus accidents.
HOLIDAY TRAVEL: 🚗✈️ Planes, trains and automobiles! A record-breaking 72.2 million people are expected to travel over the Independence Day period stretching from Saturday, June 28, to Sunday, July 6, according to estimates from AAA — a 2.4 percent jump from last year.
“AAA is seeing strong demand for road trips and air travel over Independence Day week,” said Stacey Barber, vice president of AAA Travel. “With the holiday falling on a Friday, travelers have the option of making it a long weekend or taking the entire week to make memories with family and friends.”
That means long lines, busy roads and wait times. Whether you're driving or flying, here are travel tips for the busy Fourth of July weekend.
▪ Yahoo News: Here’s where storms, traffic and crowds are expected to hit hardest.
▪ Reuters: In France, an air traffic controllers' walkout disrupts early summer travel.
🌀 The Atlantic hurricane season could get its third named storm just in time for the July 4 weekend. Regardless of whether this system gets a name, it’s already delivering drenching rain, soaking the soil and raising the flood risk in Florida. Blustery winds, heavy rain and rip currents could hit the Sunshine State, coastal Georgia and the Carolinas into the holiday weekend.
▪ Weather: From sweltering temperatures and summer thunderstorms to an upward swing in hurricane season, July can be a busy month for weather. Here's what you can expect.
ELSEWHERE
© The Associated Press | Ronen Zvulun, Reuters
ISRAEL: After 18 months of war in Gaza and weeks of strikes against Iran, Israeli Prime Minister Benjamin Netanyahu is eyeing another term in office, hoping the attacks on Tehran will boost his standing among Israelis and he can further delay a looming corruption trial. The prime minister will visit Trump at the White House next week, where the president is pushing for a 60-day ceasefire deal that Israeli officials have said they support.
Asked whether Hamas has agreed to the latest framework for a ceasefire and hostage deal, Trump told reporters Thursday: “We'll see what happens… We'll know in the next 24 hours.”
Netanyahu’s government was under harsh criticism from within Israel for failing to produce a ceasefire and hostage release deal with Hamas in Gaza. But the barrage against Tehran’s nuclear facilities briefly raised public confidence in the prime minister. Still, his approval ratings remain low. Just 40 percent of the public has trust in Netanyahu, according to a survey published Wednesday by the Israel Democracy Institute.
“Overall, we have not seen substantial shifts in public opinion regarding Prime Minister Netanyahu as a result of the war with Iran,” said Tamar Hermann, director of IDI’s Viterbi Family Center for Public Opinion and Policy Research. “While support for the war with Iran was high across the board, this and other polling data suggest the prime minister remains popular among his base of supporters, and he did not manage to change the opinions of those who oppose him.”
▪ Foreign Policy: Can Netanyahu secure a second term?
▪ BBC: Netanyahu hopes for a boost from Iran conflict — but do Israelis still trust him?
▪ CNN: More than 80 Palestinians were killed across Gaza on Thursday as Israel intensified its strikes.
▪ Reuters: The U.S. imposed sanctions on Thursday against a network that smuggles Iranian oil disguised as Iraqi oil, and on a Hezbollah-controlled financial institution.
UKRAINE: The Pentagon’s decision to halt some weapons shipments to Ukraine blindsided many, including members of Congress, State Department officials and key European allies, Politico reports. The surprise move has fueled concern and frustration, including among top Republicans, that one senior Pentagon official appeared to hold outsized influence over the decision.
“Ukraine has never asked America to send in the 82nd airborne; they’ve asked for the weapons to defend their homeland and people from Russia attacks,” former Trump Secretary of State Mike Pompeo said Wednesday in a post on the social platform X. “Letting Russia win this war would be [an] unmitigated disaster for the American people and our security around the world.”
Trump on Thursday downplayed the impact of the munitions pause.
“We’re giving weapons… and we’re working with them and trying to help them,” he said, adding “we have to make sure we have enough for ourselves.”
The president also spoke with Russian President Vladimir Putin, but said he made “no progress” during the call on attempts to broker a ceasefire in Ukraine. Moscow, meanwhile, hammered Kyiv in the largest missile and drone barrage since war in Ukraine began.
“We had a call. It was a pretty long call. Talked about a lot of things, including Iran,” Trump told reporters as he departed for Iowa. “And we also talked about, as you know, the war with Ukraine, and I’m not happy about that.”
Trump confirmed he will be speaking today with Ukrainian President Volodymyr Zelensky.
▪ The Wall Street Journal: Putin plots a summer of relentless attacks on Ukraine.
▪ The Hill: Former President Biden claimed during an event in San Diego this week that world leaders and U.S. lawmakers have urged him to stay involved in politics and have sought his advice since he left the White House in January.
▪ France24: The U.S. and Colombia recalled their top diplomats Thursday amid escalating tensions, linked to an alleged plot against Colombia’s leftist president.
OPINION
■ Congress just pushed the U.S. toward a debt crisis. The Fed can’t save us, by The Washington Post editorial board.
■ A “big beautiful” pro-growth agenda built for Main Street, not Wall Street, by Rep. Erin Houchin (R-Ind.), opinion contributor, The Hill.
THE CLOSER
© The Associated Press | Terry Chea
And finally … 👏👏👏 Congratulations to this week’s Morning Report Quiz winners! With summer in mind, we puzzled over some national parks.
🧩 Here’s who went 4/4: Richard E. Baznik, Stan Wasser, Lynn Gardner, Jess A. Elger, Sol Brotman, Linda L. Field, Jonathan Simon, Jenessa Wagner, Hadden J. Carlberg, Ned Sauthoff, Brent Tracy, Chuck Olinger, Michael Sutton, Brian Hogan, Ellie Hansen, Peter Sprofera, Sue Rarus, Bill Bennett, Lou Tisler, Alan Johnson, Chuck Schoenenberger, George Alfano, John Van Santen, Mark Roeddiger, Steve Comer, Robert Bradley, Steve James, Kirkland Hendrickson, Loren Hegge, Savannah Petracca, Carmine Petracca, Rick Schmidtke and Patrick Clark.
Yellowstone is the nation’s first national park, established in 1872.
The United States has 63 national parks.
Alaska is home to seven of the 10 largest national parks.
The world’s largest tree, known as “General Sherman,” towers into the sky in Sequoia National Park.
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