Trump's tax, spending cuts bill clears key Senate vote 51-49 as Republicans race to pass it by July 4

Time of India

6 hours ago

Senate
Republicans voting in a dramatic late Saturday session narrowly cleared a key procedural step as they race to advance President Donald
Trump
's package of tax breaks, spending cuts and bolstered deportation funds by his July Fourth deadline.
The tally, 51-49, came after a tumultuous session with Vice President JD Vance on hand if needed to break the tie. Tense scenes played out in the chamber as voting came to a standstill, dragging for hours as holdout senators huddled for negotiations. In the end, two Republicans opposed the motion to proceed to debate, joining all Democrats.
It's still a long weekend of work to come.
Republicans are using their majorities in Congress to push aside Democratic opposition, but they have run into a series of political and policy setbacks.
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Not all GOP lawmakers are on board with proposals to reduce spending on
Medicaid
, food stamps and other programmes as a way to help cover the cost of extending some USD 3.8 trillion in Trump tax breaks.
Ahead of the expected roll call, the White House released a statement of administrative policy saying it "strongly supports passage" of the bill that "implements critical aspects" of the president's agenda. Trump himself was at his golf course in Virginia on Saturday with GOP senators posting about it on social media.
"It's time to get this legislation across the finish line," said Senate Majority Leader John Thune, R-S.D.
But as the day dragged, billionaire Elon Musk lashed out, calling the package "utterly insane and destructive."
"The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!" the former top Trump aide said in a post.
The 940-page bill was released shortly before midnight Friday, and senators are expected to grind through the hours of all-night debate and amendments in the days ahead. If the Senate is able to pass it, the bill would go back to the House for a final round of votes before it could reach the White House.
With the narrow Republican majorities in the House and Senate, leaders need almost every lawmaker on board in the face of essentially unified opposition from Democrats. Sen. Thom Tillis of North Carolina and Sen. Rand Paul of Kentucky voted against.
Senate Democratic leader Chuck Schumer of New York said Republicans unveiled the bill "in the dead of night" and are rushing to finish the bill before the public fully knows what's in it. He is expected to call for a full reading of the text in the Senate, which would take hours.
Make-or-break moment for GOP
The weekend session could be a make-or-break moment for Trump's party, which has invested much of its political capital on his signature domestic policy plan. Trump is pushing Congress to wrap it up and has admonished the "grandstanders" among GOP holdouts to fall in line.
The legislation is an ambitious but complicated series of GOP priorities. At its core, it would make permanent many of the tax breaks from Trump's first term that would otherwise expire by year's end if Congress fails to act, resulting in a potential tax increase on Americans. The bill would add new breaks, including no taxes on tips, and commit USD 350 billion to national security, including for Trump's mass deportation agenda.
But the cutbacks to Medicaid, food stamps and green energy investments, which a top Democrat, Sen. Ron Wyden of Oregon said would be a "death sentence" for America's wind and solar industries, are also causing dissent within GOP ranks.
The Republicans are relying on the reductions to offset the lost tax revenues but some lawmakers say the cuts go too far, particularly for people receiving health care through Medicaid. Meanwhile, conservatives, worried about the nation's debt, are pushing for steeper cuts.
Tillis, who said he spoke with Trump late Friday explaining his concerns, announced Saturday he cannot support the package as is, largely because he said the health care changes would force his state to "make painful decisions like eliminating Medicaid coverage for hundreds of thousands."
After setbacks, Republicans revise some proposals
The release of that draft had been delayed as the Senate parliamentarian reviewed the bill to ensure it complied with the chamber's strict "Byrd Rule," named for the late Sen. Robert C. Byrd, D-W.Va.
It largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. That would be a tall order in a Senate with a 53-47 GOP edge and Democrats unified against Trump's bill.
Republicans suffered a series of setbacks after several proposals, including shifting food stamp costs from the federal government to the states or gutting the funding structure of the Consumer Financial Protection Bureau, were deemed out of compliance with the rules.
But over the past days, Republicans have quickly revised those proposals and reinstated them.
The final text includes a proposal for cuts to the Medicaid provider tax that had run into parliamentary hurdles and objections from several senators worried about the fate of rural hospitals. The new version extends the start date for those cuts and establishes a USD 25 billion fund to aid rural hospitals and providers. Sen. Josh Hawley, R-Mo., who had opposed the cuts, vowed "to do everything I can" to make sure the reductions never go into effect.
The nonpartisan Congressional Budget Office has said that under the House-passed version of the bill, some 10.9 million more people would go without health care and at least 3 million fewer would qualify for food aid. The CBO has not yet publicly assessed the Senate draft, which proposes steeper reductions.
Top income-earners would see about a USD 12,000 tax cut under the House bill, while the package would cost the poorest Americans USD 1,600, the CBO said.
SALT dispute shakes things up
The Senate included a compromise over the so-called SALT provision, a deduction for state and local taxes that has been a top priority of lawmakers from New York and other high-tax states, but the issue remains unsettled.
The current SALT cap is USD 10,000 a year, and a handful of Republicans wanted to boost it to USD 40,000 a year. The final draft includes a USD 40,000 cap, but limits it for five years.
Many Republican senators say that is still too generous. At least one House GOP holdout, Rep. Nick LaLota of New York, had said that would be insufficient.
Trump's deadline nears
House Speaker Mike Johnson, who sent his colleagues home for the weekend with plans to be on call to return to Washington. But as the Senate draft was revealed, House GOP support was uncertain. One Republican, Rep. David Valadao of California, said he was opposed.