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Trump Tax Bill 2025 faces key Vote in US Congress

In US Congress News by Newsroom July 2, 2025

Trump Tax Bill 2025 Faces Key Vote in US Congress Image

Trump Tax Bill 2025 (Credit: Getty Images)

Key Points

  • Senate Republicans narrowly passed President Donald Trump’s sweeping tax and spending bill, dubbed the "One Big Beautiful Bill Act," with a 51-50 vote; Vice President JD Vance cast the tie-breaking vote.
  • Three GOP senators—Susan Collins (Maine), Thom Tillis (North Carolina), and Rand Paul (Kentucky)—voted against the bill.
  • The bill extends the 2017 Trump tax cuts, commits $4.5 trillion to tax relief, boosts military spending, and funds a mass migrant deportation drive.
  • Projected to increase the national deficit by $3.3 trillion over ten years, the bill implements the largest cuts to Medicaid since its inception, and slashes spending on SNAP (food stamps) and clean energy programs.
  • The House, which previously passed a different version, must now approve the Senate’s changes. Significant opposition from House Republicans threatens final passage.
  • House Speaker Mike Johnson (R-La.) has pledged a quick vote but faces internal revolt, with at least 20 GOP lawmakers threatening to vote no.
  • Democrats, led by House Minority Leader Hakeem Jeffries, have condemned the bill as a “disgusting abomination” that rips healthcare from millions and redistributes wealth to the rich.
  • Senator Lisa Murkowski (R-Alaska) provided a pivotal vote after securing a carveout for Alaska, despite expressing reservations about the bill’s impact on vulnerable Americans.
  • President Trump has pressured House Republicans to pass the bill before July 4, framing it as a cornerstone of his legacy.
  • The Congressional Budget Office estimates the Senate version will cost $800 billion more than the House version.

Senate Republicans have narrowly advanced President Donald Trump’s flagship tax and spending bill, a legislative package that promises sweeping tax cuts, sharp reductions in social spending, and a dramatic reshaping of the federal budget. The bill, formally titled the “One Big Beautiful Bill Act,” passed the Senate late Tuesday after a marathon 27-hour session marked by deep divisions within the GOP and a unified Democratic opposition. The final tally stood at 51-50, with Vice President JD Vance breaking the tie—a rare move that underscored the stakes and the razor-thin margin of support.

What Are the Main Provisions of Trump’s “One Big Beautiful Bill Act”?

The legislation is a sprawling, 940-page package that fulfills several of Donald Trump’s key campaign promises. As reported by NDTV, the bill extends the 2017 Trump tax cuts by committing $4.5 trillion to tax relief, boosts military spending, and allocates new funds for a large-scale migrant deportation initiative. According to Reuters, the bill’s largest benefits accrue to the top 1% of U.S. households, while its cost is projected to add $3.3 trillion to the national deficit over the next decade.

PBS NewsHour’s reporting highlights that the bill also enacts the deepest cuts to Medicaid since the program’s inception in the 1960s, and imposes new work requirements for Medicaid recipients, including parents of older children—a move intended to further reduce federal spending. The bill slashes funding for the Supplemental Nutrition Assistance Program (SNAP), or food stamps, and trims clean energy subsidies, while channeling additional resources to military and immigration enforcement.

Why Is There Division Among Republicans Over the Bill?

Despite the party’s majority, Senate Republicans struggled to unite around the bill. As detailed by NPR’s Deirdre Walsh, three GOP senators—Susan Collins of Maine, Thom Tillis of North Carolina, and Rand Paul of Kentucky—defected, citing concerns over the scale of the spending cuts and their potential impact on vulnerable Americans. Senator Lisa Murkowski of Alaska, a moderate Republican, provided a crucial vote after securing an exemption for her state from one of the bill’s strictest provisions. Speaking to NBC News’ Ryan Nobles, Murkowski stated,

“Do I support this bill? Not at all. But I made efforts to prioritize Alaska’s needs. I recognize that in numerous regions of the nation, there are Americans who will not benefit from this bill. That concerns me”.

In the House, Speaker Mike Johnson faces a “furious new GOP revolt,” as characterized by Axios’ Andrew Solender. At least 20 Republican lawmakers have threatened to vote against the Senate version, arguing it backs away from the spending cuts and fiscal restraints they demanded. “Our bill has been completely changed ... It’s a non-starter,” Rep. Ralph Norman (R-S.C.) told reporters. Rep. Andy Ogles (R-Tenn.) announced plans to introduce an amendment to restore the original House version.

What Are Democrats Saying About the Bill?

Democratic leaders have denounced the bill in the strongest terms. At a press conference, House Minority Leader Hakeem Jeffries declared,

“Trump’s One Big Ugly Bill will rip away healthcare for more than 16 million Americans. Others across the country will pay higher premiums, co-pays and deductibles because of this unprecedented attack on Medicaid, Medicare and the Affordable Care Act. Hospitals will close, nursing homes will shut down and people will die if the GOP Tax Scam ever becomes law”.

Jeffries further accused Republicans of “literally ripping food from the mouths of children, seniors and veterans,” referencing the bill’s deep cuts to SNAP. He argued that the legislation represents a “historic redistribution of wealth from the poorest Americans to the richest,” and predicted it would become a central issue in the 2026 midterm elections.

How Did the Senate Pass the Bill Despite Internal Disagreements?

The Senate’s passage of the bill followed an intense “vote-a-rama,” a procedural marathon that allowed for the consideration of numerous amendments from both parties. As reported by Reuters, the process stretched over 18 hours, with lawmakers scrutinizing whether amendments adhered to budgetary guidelines. Senate Majority Whip John Thune told reporters after midnight that the process was “hopefully nearing completion,” but acknowledged the difficulty in reaching consensus.

Republicans could afford to lose no more than three votes in the face of unified Democratic opposition. The final push came after Senator Murkowski’s pivotal decision and Vice President Vance’s tie-breaking vote.

What Changes Did the Senate Make to the House Version?

The Senate’s version of the bill diverges from the House-passed text in several key areas, particularly regarding Medicaid. According to NPR, the Senate expanded work requirements for Medicaid recipients to include parents of older children and sought to limit so-called provider taxes, which states use to draw additional federal funds. To address concerns that these changes could threaten rural hospitals, the Senate added a $50 billion fund to support rural healthcare facilities, to be distributed over five years starting in 2026.

However, these adjustments have not satisfied many House Republicans, who argue that the Senate’s changes dilute the spending cuts and increase the deficit beyond what they consider acceptable. Axios reports that Speaker Johnson previously promised not to bring a bill to the floor that would raise the deficit above a certain threshold, a commitment now under scrutiny.

What Is the Path Forward for the Bill in the House?

Speaker Mike Johnson has promised to “work quickly” to pass the legislation and deliver it to President Trump’s desk by July 4. However, as Axios notes, he must overcome significant resistance within his caucus and navigate procedural hurdles, including possible amendments and a potential motion to vacate his speakership if he fails to deliver on promised spending cuts.

President Trump has increased pressure on House Republicans, posting on Truth Social: “GET IT DONE.” Approval by Congress would mark a major legislative victory for Trump, who has often relied on executive actions to pursue his domestic agenda.

What Are the Potential Consequences if the Bill Passes?

If enacted, the “One Big Beautiful Bill Act” would:

  • Extend the Trump-era tax cuts, primarily benefiting high-income households.
  • Add an estimated $3.3 trillion to the federal deficit over ten years, according to the Congressional Budget Office.
  • Implement the most significant cuts to Medicaid and SNAP in decades, potentially causing millions to lose health coverage and food assistance.
  • Boost military spending and fund aggressive immigration enforcement measures, including a mass deportation initiative.
  • Establish a new $50 billion fund for rural hospitals, set to begin in 2026.

Democrats argue these changes would devastate the social safety net and increase inequality, while Republicans contend the bill is necessary to stimulate economic growth and fulfill campaign promises.

What Happens Next?

The House is expected to take up the Senate-passed bill within days. Speaker Johnson faces a tight deadline and a divided caucus. Should the House approve the Senate’s changes, the bill will go to President Trump for his signature. If not, further negotiations—and possibly a legislative stalemate—will ensue.

As the July 4 deadline approaches, the outcome remains uncertain, with the future of Trump’s signature domestic policy initiative hanging in the balance.

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