The Republican-controlled U.S. Senate narrowly approved Donald Trump’s major tax and budget legislation on tuesday, according to webangah News Agency citing Reuters. The expansive package implements many of his domestic priorities while adding $3.3 trillion to the national debt.
The bill now returns to the House of Representatives for final approval, where resistance from some Republicans against Senate modifications could complicate its passage. Trump aims to sign the legislation into law by Independence Day (July 4), with House Speaker Mike Johnson stating his commitment to meeting this deadline.
The proposal includes meaningful tax cuts for corporations and individuals while restructuring federal spending priorities through 2031.
The U.S. Senate has passed a sweeping tax reform bill that extends Trump-era tax cuts, introduces new exemptions for tip and overtime income, boosts military spending and immigration enforcement, while reducing healthcare and food assistance programs for low-income Americans.
The legislation was approved by a 51-50 vote, with Vice President J.D. Vance casting the decisive tiebreaker after three Republicans – North Carolina’s Thom Tillis, Maine’s susan Collins, and Kentucky’s Rand Paul – joined all 47 Democrats in opposing the measure.
Senate Majority Leader John Thune hailed the Republican legislative victory, stating the bill “permanently extends tax relief for hardworking Americans” while promising stronger economic growth and expanded job opportunities for U.S.workers.
The package renews key provisions from the 2017 tax Cuts and Jobs Act under former President Trump while implementing new policies affecting tipped wages, defense budgets ($886 billion authorized), border security funding ($20 billion), and reductions to Medicaid ($30 billion) along with Supplemental Nutrition Assistance Program (SNAP) benefits.
The vote followed lengthy overnight negotiations, with Republicans raising concerns about the bill’s costs and its impact on America’s healthcare system. Last-minute amendments to address these issues remain unclear.
A significant portion of the final negotiations focused on securing support from Lisa Murkowski, the Republican senator from Alaska, who had previously stated she would not vote for the bill without substantial changes.
The Senate’s final version included two key provisions to win her approval: increased food assistance funding for Alaska and several other states, plus a $50 billion allocation to help rural hospitals address severe healthcare budget cuts.
The bill now moves to the House of Representatives for consideration. If approved there, it will go to President Donald trump for his signature.
