The U.S. Senate, controlled by Republicans, approved the sweeping tax cuts and spending reduction bill championed by President Donald Trump after a lengthy debate involving numerous amendments. The legislation, dubbed the “big and beautiful” bill by Trump, passed with a narrow majority (51-50) thanks to the tie-breaking vote of Vice President J.D. Vance.
The bill now returns to the House of Representatives, where the revised version must be approved before July 4th—a symbolic date chosen by the president that coincides with America’s Independence Day. Once passed, it will head to the White House for Trump’s signature.
The proposed cuts could impact Medicaid, the state healthcare program for the poor and elderly, as well as food assistance programs for the disadvantaged and disabled. Additionally, the bill is projected to increase the national debt by $3.3 trillion.
Although Republicans hold a three-seat majority in the Senate, three GOP senators opposed the bill, alongside all Democrats. Vice President Vance cast the deciding vote to break the deadlock.
In the House, the outcome is also expected to be close, with Republicans holding an eight-seat advantage (220-212). The original version passed in May by just two votes, and several GOP lawmakers say they oppose changes made by the Senate.
A group of hardline conservatives, the House Freedom Caucus—which repeatedly threatened not to back the tax bill—demands deeper cuts than those approved by the Senate. “The Senate version adds $651 billion to the deficit—and that’s without interest, which nearly doubles the total. This isn’t fiscal responsibility. We didn’t agree to this,” the group stated on Monday.
More moderate Republicans, particularly those representing poorer districts, oppose Medicaid reductions. “I won’t support a bill that eliminates vital funding for our hospitals,” said Representative David Valadao from California last weekend.