US Senate Approves Trump’s Sweeping Tax Cut And Spending Bill, Sets Stage For Crucial House Vote

The Republican-controlled US Senate passed President Donald Trump's tax and spending bill on Tuesday, approving a massive package that enshrines many of his top priorities into law while adding USD 3.3 trillion to the national debt.

The bill now heads back to the House of Representatives for final approval. Trump has urged lawmakers to get it to his desk for signing by the July 4 Independence Day holiday. Republicans have had to navigate a narrow path to shepherd the 940-page bill through a Congress they control by the slimmest of margins. With Democrats united in opposition, Republicans have had only three votes to spare in both chambers as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions uninsured.

Despite internal disagreements, Republicans have remained largely unified. Only three of the Senate's 53 Republicans joined Democrats in voting against the package, which passed 51-50 after Vice President JD Vance cast the tiebreaking vote. The upcoming House vote is also expected to be close. Republicans hold a narrow 220–212 majority.

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'Not Fiscal Responsibility'

An earlier version of the bill passed the House in May by just two votes. Several House Republicans have expressed concerns over the Senate version, which the nonpartisan Congressional Budget Office (CBO) estimates will add $800 billion more to the national debt than the House version.

The House Freedom Caucus, a group of hardline conservatives, is demanding deeper spending cuts. “The Senate’s version adds $651 billion to the deficit—and that’s before interest costs, which nearly double the total,” the caucus posted online, calling it fiscally irresponsible.

Meanwhile, moderate House Republicans, particularly those representing lower-income districts, oppose the steeper Medicaid cuts in the Senate’s plan. “I will not support a final bill that eliminates vital funding streams our hospitals rely on,” said Representative David Valadao of California.

Still, House Republicans are expected to face intense pressure from Trump to fall in line.

Tax Cuts, Immigration Crackdown, Tighter Benefits

The "One Big Beautiful Bill Act" would make permanent Trump’s 2017 business and personal tax cuts, set to expire this year. It also introduces new tax breaks for tipped income, overtime, and seniors, promises made during the 2024 election. It includes tens of billions in funding for immigration enforcement and repeals many of President Biden’s green-energy incentives.

The bill tightens eligibility for food and health assistance programs, effectively increasing costs for lower-income Americans. The CBO estimates it would raise the national debt by USD 3.3 trillion and the borrowing limit by USD 5 trillion, delaying a debt default.

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Republicans argue the bill will help families and small businesses and put safety-net programs on a sustainable path. Still, disagreements remain over Medicaid funding and a tax deduction for state and local taxes, important to Republicans from high-tax states. Some conservatives are pushing for deeper Medicare cuts, while Trump has publicly criticised dissenters and excluded them from White House events. Senator Thom Tillis of North Carolina, one of the few Republicans to vote against the bill, announced on Sunday he would not seek re-election.

 

 

(Note: Except for the headline, this article has not been edited by The Daily Jagran and has been published through a syndicated feed. Source - Reuters)