US SENATE NARROWLY PASSES TRUMP€™S €˜BIG, BEAUTIFUL€™ TAX AND SPENDING BILL.

July 3, 2025
5 months ago

US Senate Narrowly Passes Trump’s ‘Big, Beautiful’ Tax and Spending Bill.


After hours of stalemate and more than 24 hours of debate, Republicans in the US Senate have narrowly passed Donald Trump’s flagship tax and spending bill, known as the One Big Beautiful Bill Act. The legislation cleared a key hurdle with Vice-President JD Vance casting the tie-breaking vote, following a 50-50 split in the Senate.


The bill now returns to the House of Representatives, where it still faces significant opposition. An earlier version of the bill was approved by House Republicans by a razor-thin, single-vote margin. Trump had set a July 4th deadline for the Republican-controlled Congress to send him a final version to sign into law.


Tense Senate Vote and Republican Defections.


"The bill, as amended, is passed," Vance declared on Tuesday afternoon, drawing applause from Senate Republicans. Meanwhile, Democrats expressed their disapproval, shaking their heads in frustration.


The bill’s progress was slowed by deep divisions over deficit spending, social programme cuts, and overall spending levels. Even Trump conceded that meeting his deadline would be "very hard."


Despite efforts to unify the party, Senate Majority Leader John Thune lost the support of three Republican senators—Susan Collins (Maine), Thom Tillis (North Carolina), and Rand Paul (Kentucky)—who joined Democrats in voting against the bill.


After intense negotiations, Republican leaders secured the backing of Alaska Senator Lisa Murkowski, who had withheld her support due to concerns about Medicaid cuts in her state. Though she ultimately voted in favour, Murkowski criticised the rushed process, calling it "probably the most difficult and agonising legislative 24-hour period" of her career.


"My hope is that the House recognises we’re not there yet," she told reporters moments after the vote.


Trump Celebrates, But Opposition Mounts.


During a visit to a migrant detention facility in Florida, Trump hailed the bill as "great" and claimed, "There is something for everyone." The legislation, a cornerstone of his second-term agenda, would make permanent the sweeping tax cuts introduced during his first term.


To offset the expected revenue loss, Republicans have proposed significant cuts to programmes like food subsidies and healthcare for lower-income Americans.


Democrats fiercely opposed the bill, deploying procedural tactics to delay its passage, including forcing Senate clerks to read all 940 pages aloud and triggering a marathon amendment debate known as a "vote-a-rama."


House Showdown Looms


The bill now returns to the House, where its fate remains uncertain. Republicans can afford to lose only three votes.


The right-wing House Freedom Caucus has condemned the Senate version, warning it could add \$650 billion to the national deficit annually. “That’s not fiscal responsibility,” they posted on social media. Other House Republicans have expressed concerns over deeper-than-expected Medicaid cuts.


Democrats in both chambers have also criticised the proposed reductions to welfare and healthcare programmes.


Musk Threatens Political Fallout


One of the bill’s most prominent critics is tech billionaire Elon Musk, who played a key role in Trump’s re-election and served as his cost-cutting adviser. Musk, angered by the bill's deep cuts to renewable energy and electric vehicle incentives—potentially harming Tesla—has vowed to derail the legislation.


On Monday, Musk threatened to back challengers to any Republican who supports the bill and even floated the idea of forming a new political party. "Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!" Musk posted on X (formerly Twitter).


The House now races against Trump’s July 4th deadline, with growing opposition threatening the future of his signature legislation.