Senate Republicans Pass $3.3 Trillion Tax Cut and Spending Bill Amid Fiscal Concerns

The U.S. Senate narrowly passed President Donald Trump’s comprehensive tax-cut and spending bill, known as the “One Big Beautiful Bill Act,” with a 51-50 vote. Vice President JD Vance cast the tie-breaking vote, underscoring the legislation’s contentious nature.

The bill extends the 2017 tax cuts, introduces new tax breaks for tips and overtime income, and significantly increases spending on military and immigration enforcement. However, it also slashes $930 billion from Medicaid and food assistance programs and eliminates many of former President Biden‘s green-energy incentives.

The legislation adds $3.3 trillion to the national debt and raises the federal debt ceiling by $5 trillion. It now faces a close vote in the House of Representatives, where some Republicans object to its fiscal impact and steep Medicaid cuts, while Democrats uniformly oppose it, labeling it a major assault on healthcare and nutrition.

House Speaker Mike Johnson aims to pass the bill before the July 4 holiday. Critics, including the Congressional Budget Office and Elon Musk, argue the bill benefits the wealthy, increases national debt, and leaves nearly 12 million more Americans uninsured. Moderate and hardline Republicans remain divided, complicating the bill’s prospects in the House.