Senate Narrowly Passes Trump’s Sweeping Tax and Spending Bill, Setting Stage for Contentious House Vote
The U.S. Senate, led by Republicans, narrowly approved President Donald Trump’s expansive tax-cut and spending package on Tuesday, moving forward a plan that would significantly reduce taxes, scale back social safety net programs, and increase funding for the military and immigration enforcement—while adding an estimated $3.3 trillion to the national debt.
The legislation now heads to the House of Representatives, where several Republicans have already raised concerns about the Senate’s changes. Trump aims to sign the bill into law by July 4, and House Speaker Mike Johnson said he’s working to meet that deadline.
Key features of the bill include extending Trump’s 2017 tax cuts, offering new tax breaks for tips and overtime, boosting defense and border funding, cutting $930 billion from Medicaid and food assistance, and repealing many of President Joe Biden’s green energy incentives.
The bill has highlighted Republican divisions over fiscal priorities, as it raises the federal debt ceiling by $5 trillion to avoid default. Despite opposition from three GOP senators—Thom Tillis (NC), Susan Collins (ME), and Rand Paul (KY)—the Senate passed the bill 51-50, with Vice President JD Vance casting the tie-breaking vote.
Debate in the Senate continued overnight as GOP lawmakers wrestled with the bill’s price tag and implications for healthcare. Senator Lisa Murkowski (AK), initially opposed, backed the bill after receiving assurances that it would provide extra food aid to Alaska and $50 billion for rural hospitals to offset Medicaid cuts.
Tight Vote Expected in the House
With a narrow 220-212 Republican majority, the bill faces a tight vote in the House. Speaker Johnson said during an interview on Fox News that Republicans plan to advance the bill through committee by Wednesday and bring it to a floor vote before the holiday—weather permitting.
Trump is expected to be “deeply involved” in lobbying House Republicans, according to a White House official. Speaking in Florida, Trump praised the bill as “great” and said, “There is something for everyone.”
But resistance remains. The House version of the bill, passed in May with only a two-vote margin, was less costly than the Senate version. The Congressional Budget Office (CBO) estimates the Senate version would add $800 billion more to the deficit than the House’s.
The House Freedom Caucus, composed of hardline conservatives, has pushed for deeper spending cuts. “There’s a significant number who are concerned,” said Representative Chip Roy (TX). Meanwhile, moderate Republicans from lower-income districts are uneasy about the extent of the Medicaid cuts.
Additionally, GOP lawmakers from high-tax states like New York, New Jersey, and California are demanding bigger deductions for state and local taxes (SALT).
Elon Musk, once a Trump ally, has also criticized the bill’s cost and warned he may support primary challengers to GOP lawmakers who back it.
House Democrats are expected to oppose the bill unanimously. Democratic Leader Hakeem Jeffries called it “the largest assault on American healthcare and nutrition in history.”
Major Shifts in Taxes, Healthcare, and Benefits
According to the Tax Foundation, the Senate bill would disproportionately benefit the wealthiest 1% of Americans—those earning over $663,000 in 2025. The CBO forecasts that nearly 12 million more people would lose health coverage under the plan.
Independent experts say the bill would tighten access to food and healthcare programs, reducing disposable income for low-income Americans while increasing their costs. Critics argue the measure effectively shifts wealth from younger to older Americans by increasing national debt.
Senate Majority Leader Chuck Schumer condemned the bill as a disgrace, accusing Republicans of stripping healthcare from millions and depriving children of food.
Republicans pushed back on the CBO’s deficit projections, claiming the Medicaid cuts target “waste, fraud, and abuse” rather than essential services.
