US Senate approves divisive Trump spending Bill

Straits Times

a day ago

Sign up now: Get ST's newsletters delivered to your inbox
Senate Majority Leader John Thune (centre) - accompanied by Republican senators John Barrasso (left) and Mike Crapo - speaking to reporters after the Senate passed US President Donald Trump's so-called "One, Big, Beautiful Bill," on July 1.
WASHINGTON - The Republican-led US Senate approved President Donald Trump's mammoth domestic policy Bill on July 1 by the narrowest of margins, despite misgivings over delivering deep welfare cuts and another US$3 trillion (S$3.8 trillion) in national debt.
Republican leaders had struggled to corral support during a record 24-hour 'vote-a-rama' amendment session on the Senate floor, as Democrats offered dozens of challenges to the most divisive aspects of the package.
But Senate Majority Leader John Thune was able to turn around wavering moderates to deliver a 50-50 vote, with Vice-President JD Vance breaking the tie.
The sprawling text now heads to the House of Representatives, where it faces unified Democratic opposition and multiple Republicans baulking at the budget-busting costs, as well as slashed health care and food aid programmes for poor Americans.
Mr Trump's Bill proposes a US$4.5 trillion extension of his first term tax cuts, contentiously offset with US$1.2 trillion in savings mainly targeting the Medicaid health insurance programme, as well as federal food aid.
The health care cuts could see an estimated 12 million low-income and disabled Americans lose coverage.
The package also rolls back billions of dollars in green energy tax credits while providing a US$350 billion infusion for border security and Mr Trump's mass migrant deportation programme.
Top stories
Swipe. Select. Stay informed.
Singapore Seniors can claim $800 SG60 vouchers from July 1; adults to get $600 in vouchers from July 22
Singapore NSman, 30, dies in hospital after collapsing outside Maju Camp
Asia Thai PM's suspension could spell end of Shinawatra clan's era of political dominance
Singapore Judge rejects woman's claim that she owns 99% of Bukit Timah condo mostly paid for by ex-boyfriend
Singapore 'He fought till the end': Man who survived acid attack as a baby dies of cancer at 26
Singapore Trial opens for 3 women who allegedly organised procession outside Istana
Business Do not overcommit to a single solution in a multi-polar world, says ex-foreign minister George Yeo
Singapore 1MDB saga: Standard Chartered Bank disputes $3.4 billion claim by liquidators in Singapore
The president made clear that the goal remains to get the Bill through the House in the coming days and sign it into law by the July 4 Independence Day holiday.
'It's going to get in, it's going to pass, and we're going to be very happy,' Mr Trump told reporters ahead of the vote.
'Utter shame'
Polls show the Bill is among the most unpopular ever considered, and Democrats hope to leverage public anger ahead of the 2026 midterm elections when they aim to retake the House.
Backed by extensive independent analysis, they say the Bill's tax cuts would disproportionately benefit the wealthy at the expense of social safety net programmes for the poorest Americans.
'Today, Senate Republicans betrayed the American people and covered the Senate in utter shame,' said Mr Chuck Schumer, the leader of the Senate Democratic minority.
'In one fell swoop, Republicans passed the biggest tax break for billionaires ever seen – paid for by ripping away health care for millions of people and taking food out of the mouths of hungry kids.'
A handful of senators in the Republican majority had threatened to upset the apple cart, voicing concerns that the Bill would add more than US$3.3 trillion to the nation's already yawning budget deficits over a decade.
The most high-profile opposition came in the shape of tech billionaire and estranged former Trump aide Elon Musk, who baulked at the Bill's debt implications and
stripping of clean energy subsidies.
A furious Mr Trump on July 1 said
he would consider deporting Mr Musk – whose electric car company Tesla gives him extensive interests in green energy – and ending federal funds for his companies.
'Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,' Mr Trump posted on social media.
Focus on House
Although the House of Representatives has already passed its own version of the Bill, it will have to come back to the lower chamber for a final rubber stamp before it reaches Mr Trump's desk.
House Republicans were watching anxiously from the sidelines to see if their Senate colleagues would adopt changes that would be hard for Speaker Mike Johnson to sell to his lawmakers.
Fiscal hawks in the lower chamber are furious at what they say is US$651 billion of extra deficit spending in the Senate's tweaks.
A House vote could come as early as July 2 but even with full attendance, House Republicans can only afford to lose three votes.
'The House will work quickly to pass the One Big Beautiful Bill that enacts President Trump's full America First agenda by the Fourth of July,' Mr Johnson said after the vote.
'The American people gave us a clear mandate, and after four years of Democrat failure, we intend to deliver without delay.' AFP