Senate Approves GOP Tax and Spending Cuts Package After Dramatic Standoff

The Senate narrowly passed President Donald Trump’s sweeping tax and spending cuts bill following a dramatic overnight session, marking a major legislative victory for the administration. The final vote was split 50-50, and Vice President JD Vance cast the tie-breaking vote to push the bill through. The passage followed an intense period of negotiations and deep divisions within the Republican Party, with three GOP senators—Thom Tillis of North Carolina, Susan Collins of Maine, and Rand Paul of Kentucky—breaking ranks to vote against the measure alongside all Democrats.

The bill, titled the “One Big Beautiful Bill Act” before Democrats moved to strip the name, has now been sent back to the House for final approval. House Speaker Mike Johnson had previously warned the Senate not to make substantial changes to the bill the House had already passed. However, the Senate introduced several amendments, especially concerning Medicaid, which could complicate its path forward. The House is expected to vote on the revised version on Wednesday, with GOP leaders aiming to have the bill on Trump’s desk by his self-imposed July 4th deadline.

The legislation is wide-ranging and controversial. It includes $4.5 trillion in tax cuts, making permanent the tax reductions first enacted under Trump’s 2017 law, which are set to expire at the end of the year. It also introduces new tax breaks, including one that eliminates taxes on tips, a policy Trump had promoted during his campaign. On the spending side, the bill imposes $1.2 trillion in cuts, largely affecting Medicaid and food stamps. These cuts are achieved by tightening eligibility rules, imposing work requirements on able-bodied adults (including some parents and older Americans), and changing the way the federal government reimburses states.

Additionally, the bill scales back billions of dollars in green energy tax credits—an area of major concern for Democrats, who argue that the rollback will devastate investments in wind and solar energy across the country. The legislation also includes a $350 billion allocation for border and national security efforts, including funding for deportation initiatives. Some of this funding would come from increased fees on immigrants.

Despite the bill’s passage, internal Republican support was shaky. Many GOP senators were dissatisfied with aspects of the legislation. Senator Susan Collins fought to add a $50 billion rural hospital fund to help mitigate the effects of Medicaid cuts on smaller communities. Though her amendment was initially rejected, a similar provision was included in the final package—yet she still voted no, stating that her concerns with the bill extended well beyond that issue. Senator Lisa Murkowski of Alaska also had mixed feelings. While she secured temporary protections from food stamp cuts for her state and others, she was unable to obtain better Medicaid reimbursements and described the process as “agonizing.” She ultimately voted in favor of the bill.

The opposition was not limited to lawmakers. Billionaire Elon Musk publicly criticized the bill, saying those who supported it should “hang their head in shame” and vowed to campaign against them. Meanwhile, the Congressional Budget Office (CBO) issued a stark warning that the bill would increase the federal deficit by nearly $3.3 trillion over the next decade and could result in 11.8 million more Americans becoming uninsured by 2034. These findings further fueled Democratic efforts to delay the bill’s passage.

Democratic senators attempted to stall the process with procedural maneuvers, including a lengthy reading of the bill over the weekend. Senator Patty Murray of Washington criticized the Republicans’ accounting tactics, particularly their decision to treat Trump’s 2017 tax cuts as “current policy,” a move she argued was deceptive and misleading to the American public.

In the end, despite the marathon voting session, political infighting, and growing public backlash, Senate Republicans managed to push the bill through, delivering a key win for President Trump and underscoring the sharp ideological divides surrounding tax policy, healthcare, and government spending in Washington today.

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