The U.S. House of Representatives has moved forward with a plan to extend President Trump’s tax cuts and raise the debt ceiling. This plan would implement $5.3 trillion in tax cuts over 10 years and comes alongside a substantial $5 trillion increase to the debt ceiling. This legislation, led by House Speaker Mike Johnson, aims to replicate the economic benefits of 2017’s tax cuts through spending reductions. Market reactions have been mixed, with initial positive responses stemming from Trump’s actions like suspending proposed tariffs. Despite this, some analysts express concern regarding potential fiscal strain and the equity of such adjustments, particularly concerning Medicaid and social programs. The outcome of these initiatives remains to be seen.