Senate Passes Trump’s Big Tax & Spending Cuts Bill

WASHINGTON (July 1, 2025) — Senate Republicans hauled President Donald Trump’s big tax breaks and spending cuts bill to passage Tuesday by the narrowest of margins, pushing past opposition from Democrats and their own GOP ranks after a turbulent overnight session. 

The outcome capped an unusually tense weekend of work at the Capitol, the president’s signature legislative priority teetering on the edge of approval or collapse. In the end that tally was 50-50, with Vice President JD Vance casting the tie-breaking vote.

The difficulty for Republicans, who have the majority in Congress, to wrestle the bill to this point is not expected to let up. The package now goes back to the House, where Speaker Mike Johnson of Louisiana had warned senators not to overhaul what his chamber had already approved. But the Senate did make changes, particularly to Medicaid, risking more problems ahead. House GOP leaders scheduled a Wednesday vote and vowed to put it on Trump’s desk by his July Fourth deadline, which is Friday.

What’s in the Big Bill

All told, the Senate bill includes $4.5 trillion in tax cuts, according to the latest Congressional Budget Office analysis, making permanent Trump’s 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips.

The Senate package would roll back billions of dollars in green energy tax credits, which Democrats warn will wipe out wind and solar investments nationwide. It would impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements on able-bodied people, including some parents and older Americans, making sign-up eligibility more stringent and changing federal reimbursements to states.

Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants.

SOURCE: Adapted from Associated Press coverage. Read the original story here.