Senate Passes Trump’s Big Tax and Spending Cuts Bill as Vance Breaks a 50-50 Tie

July 2, 2025

Senate Republicans narrowly passed President Donald Trump's tax cuts and spending bill with a 50-50 vote that required Vice President JD Vance to cast the tie-breaking vote. The contentious "One Big Beautiful Bill Act" faced opposition from Democrats and three Republican senators—Thom Tillis, Susan Collins, and Rand Paul. The 887-page package, which includes $4.

Who is affected

Medicaid recipients, with millions potentially losing healthcare access according to CBO projections showing 11.8 million more Americans becoming uninsured by 2034
Food stamp recipients, particularly able-bodied people including some parents and older Americans who would face new work requirements
Immigrants who would be subject to new fees for immigration services
Rural hospitals, which received a $50 billion fund in the final bill to offset potential Medicaid provider cuts
American taxpayers, who would see permanent extension of Trump's 2017 tax rates and new tax breaks including no taxes on tips
Green energy industry investors, as the bill rolls back billions in wind and solar tax credits

What action is being taken

Senate Republicans are passing the tax cuts and spending bill through a narrow 50-50 vote with Vice President Vance casting the tie-breaking vote
House GOP leaders are scheduling a Wednesday vote on the bill to meet Trump's July Fourth deadline
Republican leaders are negotiating last-minute agreements within their party to secure passage
Senate leadership is making modifications to the original House bill, particularly regarding Medicaid provisions
Democrats are attempting to slow the legislative process, including through a weekend reading of the full bill

Why it matters

This represents a pivotal moment for President Trump and Republicans to deliver on their policy priorities after winning control of Washington
The bill makes permanent Trump's 2017 tax rates that would otherwise expire at year's end
The legislation significantly restructures Medicaid and food assistance programs through new eligibility requirements
According to CBO analysis, the package increases the deficit by nearly $3.3 trillion over the next decade
The bill provides $350 billion for border and national security, including deportation funding
The legislation eliminates billions in green energy tax credits that Democrats warn could undermine wind and solar investments

What's next

The bill now returns to the House, where Speaker Mike Johnson must manage passage despite Senate modifications to the original House version
House GOP leaders have scheduled a Wednesday vote on the legislation
Republicans aim to deliver the final bill to President Trump's desk by his July Fourth deadline (Friday)

Read full article from source: The San Diego Voice & Viewpoint