United States Republicans’ tax and spending bill has narrowly passed the Senate amid widespread opposition, paving the way for major tax cuts and reductions to social welfare programs.
The bill passed with 50 votes in favour and 50 votes against, with Vice President JD Vance breaking the tie. It would cement major tax cuts into law, including many for high earners, as well as slash funding for Medicaid and allocate billions of dollars for deportation efforts.
“Almost all of our Great Republicans in the United States Senate have passed our ‘ONE, BIG, BEAUTIFUL BILL.’ It is no longer a ‘House Bill’ or a ‘Senate Bill’. It is everyone’s Bill,” wrote U.S. President Donald Trump on Truth Social. The bill will now return to the House of Representatives for another vote, with Trump calling for the House to pass the bill by 4 July.
The tax and spending bill, formerly known as the One Big Beautiful Bill Act, includes US$4.5 trillion in tax cuts. It stands to make the 2017 tax cuts imposed during Trump’s first term permanent, which significantly lowered taxes on the wealthy.
It would allocate US$45 billion to Immigrations and Customs Enforcement for detention facilities and $14 billion for deportation operations, as the agency continues its crackdown on undocumented immigration.
Medicaid, the health insurance program for low-income and disabled Americans, will face funding cuts of around US$1 trillion. The bill will also raise the U.S. government’s debt ceiling by $5 trillion, with the Congressional Budget Office estimating it would increase the deficit by $3.3 trillion through 2034.
The bill has been opposed by Republicans as well as Democrats. Three Republican senators — Susan Collins of Maine, Thom Tillis of North Carolina, and Rand Paul of Kentucky — voted against the bill’s passage, along with all Democratic senators.
“It is destructive for Republicans to pass a bill like this at a time when people pay more for groceries, when people pay more for rent, pay more for child care, pay more for medication,” said Democratic Senate Minority Leader Chuck Schumer. “It makes no sense to reward the billionaire class and special interests at the expense of everyone else.”
Republican megadonor and Tesla CEO Elon Musk has also heavily criticised the bill, which removes subsidies for electric vehicle purchases. Musk has called for the formation of a new political party, and said he would contribute to efforts to unseat Republicans voting for the bill.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote on Truth Social in response to Musk’s criticism. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”
Related content
