Senate Republicans have narrowly passed President Donald Trump’s significant bill concerning tax cuts and spending reductions, overcoming opposition from Democrats and some within their own ranks. The vote, which concluded early on Wednesday AEST, resulted in a tight 50-50 tie, with Vice President JD Vance casting the decisive vote.
The tense session followed a weekend of intensive negotiations as the future of what is formally known as the “One Big Beautiful Bill Act” hung in the balance. Three Republican senators—Thom Tillis, Susan Collins, and Rand Paul—joined the Democrats in opposing the legislation, reflecting deep divisions within the party.
Despite having a majority, securing this legislation proved challenging for the Republicans. The amended bill will return to the House, potentially facing pushback from Speaker Mike Johnson, who has cautioned against deviating from earlier House approvals. The Senate’s alterations, particularly concerning Medicaid, may provoke further complications as deadlines loom before Trump’s Fourth of July target.
This legislative action represents a critical moment for Trump and the GOP, who have invested considerable political capital into this sweeping reform. Trump himself acknowledged the bill’s complexity and expressed reluctance regarding budget cuts, stating “I don’t like cuts.”
The grueling process of passing the bill involved a continuous series of votes, with leadership scrambling to secure the essential support. Notable figures like Senate Majority Leader John Thune attempted to broker last-minute compromises to appease both moderate Republicans wary of Medicaid cuts and conservative members demanding more aggressive fiscal measures.
Concerns surrounding the impact of the bill were highlighted by the Congressional Budget Office, which estimated that 11.8 million Americans could lose their health insurance over the next decade, while the legislation could exacerbate the deficit by nearly $3.3 trillion. Additionally, the inclusion of a $5 trillion increase to the debt ceiling has drawn criticism from various quarters, including figures like Elon Musk, who lambasted the package as overly indulgent.
Efforts from Democrats to delay the vote included an exhaustive reading of the bill over the weekend. They successfully slowed progress, though most proposed amendments did not pass. One notable amendment that did receive bipartisan support was a rejection of a measure limiting state regulation of artificial intelligence.
The final package includes approximately $4.5 trillion in tax cuts, reinforcing tax rates established in Trump’s 2017 reforms while imposing significant spending cuts, primarily targeting Medicaid and food assistance programs. These cuts include stricter eligibility criteria and work requirements. Furthermore, the legislation allocates $350 billion towards border and national-security measures, including new fees imposed on immigrants.
Overall, the tight passage of this ambitious package underscores the complexities and challenges facing the Trump administration in executing its legislative agenda amid significant political pressures and opposition both inside and outside the Republican Party.