• Wednesday, July 16, 2025

HEADLINE STORY

Senate Republicans pass Trump’s controversial tax and spending bill, house showdown looms

Senate Republicans have passed Donald Trump’s sweeping tax and spending bill after intense debate, but deep divisions in the House over Medicaid cuts and deficit concerns threaten its final approval.

WASHINGTON, DC – JUNE 28: U.S. Senate Majority Leader John Thune (R-SD) walks to the Senate floor following a meeting with Senate Republicans in the U.S. Capitol on June 28, 2025 in Washington, DC. Senate Republicans overnight released a new version of the “One, Big, Beautiful Bill,” as they approach U.S. President Donald Trump’s July 4 deadline. (Photo by Al Drago/Getty Images)

By: Vibhuti Pathak

Senate Republicans have narrowly passed president Donald Trump’s ambitious tax and spending bill, moving it one step closer to becoming law after weeks of intense negotiations and partisan debate. The legislation, which combines permanent tax cuts, increased defense and border security funding, and deep reductions to social safety net programs, now heads to the House of Representatives for a decisive vote.

What’s in the “Big, Beautiful Bill”?

The bill, informally dubbed the “One Big Beautiful Bill,” is a sprawling 887-page package that aims to cement Trump’s hallmark 2017 tax cuts, which are set to expire at the end of this year, and introduce additional tax breaks. Key provisions include:

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  • Permanent extension of 2017 tax cuts: Making existing tax rates and brackets permanent, predominantly benefiting higher-income households.
  • New tax breaks: Temporary elimination of taxes on tips and overtime pay, expanded deductions for older adults, and new deductions for some auto loan interest payments.
  • Increased funding for border security and deportations: Over $50 billion for new border fortifications, $45 billion for Immigration and Customs Enforcement detention facilities, and $14 billion for deportation operations, with plans to hire 10,000 new agents by 2029.
  • Cuts to Medicaid and SNAP: The bill imposes new work requirements on Medicaid recipients, limits provider taxes that states use to fund the program, and scales back Supplemental Nutrition Assistance Program (SNAP) funding, potentially causing millions to lose coverage or benefits.

Senate Passage: A Divided Chamber

The Senate approved the bill by a razor-thin 51-50 margin, with Vice President JD Vance casting the tie-breaking vote after three Republicans joined all Democrats in opposition. The vote capped nearly 48 hours of debate and amendment votes, reflecting deep divisions within the GOP. Some moderate Republicans, including Susan Collins, Thom Tillis, and Rand Paul, opposed the bill over concerns about cuts to Medicaid and the projected increase to the federal deficit.

Fiscal Impact and Criticism

The nonpartisan Congressional Budget Office estimates the legislation will add $3.3 trillion to the national debt over the next decade, with critics warning the true figure could be even higher if temporary provisions are made permanent. Fiscal watchdogs and Democrats have slammed the bill as fiscally irresponsible, arguing that it prioritizes tax breaks for the wealthy and corporations at the expense of working families, healthcare access, and deficit reduction.

Senate Democratic leader Chuck Schumer called the bill a “big, ugly betrayal,” warning of job losses, hospital closures, and higher costs for ordinary Americans. Even some Republicans expressed regret over the rushed process and the bill’s potential impact on vulnerable populations.

Next Steps: Uncertain Path in the House

The bill now faces a crucial test in the House, where Republican leaders are pushing for a final vote as early as Wednesday to meet Trump’s July 4 deadline. However, the House GOP’s narrow majority and deep factional splits mean the outcome is far from certain. Moderates are uneasy about the safety-net cuts, while fiscal conservatives argue the bill does not go far enough in reducing spending.

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Some House Republicans, particularly those from competitive districts, have voiced strong objections to the Medicaid cuts and the rushed timeline, while others are wary of being asked to approve a Senate-amended bill with little time for review. The Democratic caucus is uniformly opposed, and party leaders have signaled they will use every procedural tool available to try to block the measure.

Political Stakes and Outlook

For Trump and Republican leaders, the bill represents a signature legislative achievement and a key campaign promise. But with the national debt set to rise and millions potentially losing access to vital programs, the political risks are high. The coming days will determine whether the GOP can unite behind the measure—or whether internal divisions and public backlash will force further changes before it reaches the president’s desk

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