In a very close vote, the U.S. Senate has passed a major tax-cut and spending bill backed by former President Donald Trump. This bill is one of the biggest financial plans in recent years and could make major changes to taxes, healthcare, and government spending. The vote passed by just one vote, showing how divided lawmakers are about the bill. Now, it heads to the House of Representatives for final approval.
What the Bill Includes
This bill includes many big changes that affect different parts of the U.S. government and economy:
- Big Tax Cuts: The bill extends Trump’s 2017 tax cuts and gives more tax breaks to people who earn tips or work overtime.
- More Money for Defense: It increases military spending and funding for immigration enforcement.
- Cuts to Social Programs: It reduces spending on important programs like Medicaid (healthcare for low-income people) and food aid.
- Debt Increase: The bill raises the national debt by a huge $3.3 trillion, bringing the total U.S. debt to over $36 trillion.
A Tight Senate Vote
- The bill passed with a 51-50 vote. Vice President JD Vance had to step in to break the tie.
- Three Republican senators—Thom Tillis, Susan Collins, and Rand Paul—voted against it along with all Democrats.
- Senator Lisa Murkowski changed her vote after two special changes were added to help her state, Alaska: more food aid and $50 billion for rural hospitals.
What Happens Next
- The bill now goes to the House of Representatives, where Republicans have a slim majority.
- Some House Republicans are not happy with parts of the Senate bill, especially the larger cuts to Medicaid and food aid.
- House Speaker Mike Johnson said they hope to vote on the bill before the July 4 Independence Day holiday, but travel delays due to bad weather could affect this timeline.
- Trump wants to sign the bill into law as soon as possible.
Main Concerns and Criticism
This bill has created a lot of debate:
- Hardline Republicans (like the House Freedom Caucus) say the bill does not cut spending enough.
- Moderate Republicans worry that cuts to Medicaid could hurt people in their communities, especially in rural areas.
- High-tax states like New York and California want bigger tax breaks for state and local taxes.
- Democrats say the bill will hurt poor people the most. It could cause nearly 12 million Americans to lose their health insurance, according to the Congressional Budget Office (CBO).
Democratic Leader Hakeem Jeffries called the bill “the largest attack on American healthcare and nutrition in history.”
Even billionaire Elon Musk, once a Trump supporter, criticized the bill’s huge cost and said he would support new candidates against lawmakers who backed it.
Who Benefits the Most?
- According to experts, the biggest tax cuts go to the top 1% of earners—those making over $663,000 a year.
- Poorer Americans would likely lose out, facing higher healthcare and food costs because of the cuts to Medicaid and food programs.
- Some say this is like shifting money from younger people (who will pay the debt later) to older generations who benefit now.
The final House vote will decide if this bill becomes law. With many lawmakers divided, the vote is expected to be very close. If the bill passes, it will change the U.S. tax system, healthcare programs, and government spending in big ways.
