U.S. Senate passes Trump's 'Big Beautiful Bill,' sends to House for final approval

Thomson Reuters

· Posted: Jul 01, 2025 1:12 PM EDT | Last Updated: 7 hours ago

The Republican-controlled U.S. Senate passed President Donald Trump's taxation and spending measure on Tuesday, signing disconnected connected a massive package that would enshrine galore of his apical priorities into instrumentality portion adding $3.3 trillion US to the nationalist debt.

The bill now heads backmost to the House of Representatives for last approval. Trump has pushed lawmakers to get it to his table to motion into instrumentality by the July 4 Independence Day holiday.

Trump's Republicans person had to navigate a constrictive way portion shepherding the 940-page measure done a Congress that they power by the slimmest of margins.

With Democrats lined up successful opposition, Republicans person had lone 3 votes to spare successful some the House and Senate arsenic they wrangled implicit circumstantial taxation breaks and health-care policies that could reshape full industries and permission millions of radical uninsured.

Yet they person managed to enactment mostly unified truthful far. Only three of the Senate's 53 Republicans joined with Democrats to ballot against the package, which passed 51-50 aft Vice-President JD Vance formed the tiebreaking vote.

The ballot successful the House, wherever Republicans clasp a 220-212 majority, is apt to beryllium adjacent arsenic well.

'Not fiscal responsibility'

An archetypal mentation passed with lone 2 votes to spare successful May, and respective Republicans successful that enclosure person said they bash not enactment the mentation that has emerged from the Senate, which the non-partisan Congressional Budget Office (CBO) estimates volition adhd $800 cardinal US much to the nationalist indebtedness than the House version.

The House Freedom Caucus, a radical of hardline conservatives who repeatedly threatened to withhold their enactment for the taxation bill, is pushing for much spending cuts than what the Senate offered.

"The Senate's mentation adds $651 billion to the shortage — and that's earlier involvement costs, which astir treble the total," the caucus posted online connected Monday, "That's not fiscal responsibility. It's not what we agreed to."

A radical of much mean House Republicans, particularly those who correspond lower-income areas, entity to the steeper Medicaid cuts successful the Senate's plan.

WATCH | Legislation volition spell backmost to the House for a last circular of votes: 

"I volition not enactment a last measure that eliminates captious backing streams our hospitals trust on," Rep. David Valadao, a California Republican, said during the play debate.

Still, House Republicans are apt to look tremendous unit to autumn successful enactment from Trump successful the days to come.

Tax breaks, migration crackdown, tighter benefits

The One Big Beautiful Bill Act would marque imperishable Trump's 2017 concern and idiosyncratic income taxation cuts, which are owed to expire astatine the extremity of this year, and dole retired caller taxation breaks for tipped income, overtime and seniors that helium promised during the 2024 election. It provides tens of billions of dollars for Trump's migration crackdown and would repeal many of Democratic president Joe Biden's green-energy incentives.

The measure would besides tighten eligibility for nutrient and wellness information nett programs, which non-partisan analysts accidental would efficaciously trim income for poorer Americans who would person to wage for much of those costs.

The CBO estimates the latest mentation of the measure would adhd $3.3 trillion US to the $36.2 trillion indebtedness pile. That accrued indebtedness efficaciously serves arsenic a wealthiness transportation from younger to older Americans, non-partisan analysts say, arsenic it volition dilatory economical growth, rise borrowing costs and assemblage retired different authorities spending successful the decades to come.

The measure besides would rise the nation's borrowing bounds by $5 trillion US, postponing the imaginable of a indebtedness default this summertime that would roil planetary markets.

WATCH | How Trump's 'Big Beautiful Bill' could impact Canadians' wallets: 

Republicans rejected the outgo estimation generated by the CBO's long-standing methodology. Nonetheless, overseas enslaved investors see incentives to diversify retired of U.S. Treasuries as deficits deepen.

Republicans accidental the measure volition assistance families and tiny businesses and enactment payment programs similar Medicaid connected a much sustainable path, and they person broadly agreed connected its main contours.

But they person struggled to hold connected the Medicaid backing mechanics and a taxation interruption for authorities and section taxation payments that is simply a apical precedence for a fistful of House Republicans from high-tax states including New York, New Jersey and California. Others interest that a crackdown connected a backing mechanics for the Medicaid wellness programme could pb to service cutbacks in agrarian areas.

Some connected the party's close flank, meanwhile, person pushed for deeper Medicare cuts to lessen its budgetary impact.

Trump has singled retired those Republican dissenters connected his Truth Social web and excluded them from White House events, and fewer person been consenting to defy him since helium returned to bureau successful January. Sen. Thom Tillis of North Carolina, one of the three Republicans who voted against the bill, said connected Sunday he would not run for re-election adjacent year.