The U.S. Senate narrowly approved President Donald Trump’s sweeping tax-and-spending bill on Tuesday, with Vice President JD Vance casting the tie-breaking vote to secure a 51-50 margin.
The legislation, dubbed the “One Big Beautiful Bill,” aims to extend the 2017 tax cuts set to expire at the end of 2025, make most of these cuts permanent, and increase funding for defense, border security, and energy initiatives. However, it also includes significant reductions in social safety net programs, including nearly $930 billion in cuts to Medicaid and food assistance for low-income Americans.
The bill is projected by the Congressional Budget Office to add approximately $3.3 trillion to the national debt over the next decade, raising concerns among fiscal conservatives and Democrats alike.
The Senate’s approval followed nearly 48 hours of intense debate and negotiations, with three Republican senators joining Democrats in opposition due to worries over the bill’s cost and its impact on healthcare and social services. Last-minute amendments, including increased food aid funding for states like Alaska and support for rural hospitals facing Medicaid cuts, helped secure crucial votes.
The bill now moves to the House of Representatives, where approval is uncertain amid dissent within the Republican ranks. Speaker Mike Johnson has expressed intent to hold a vote by Wednesday, aiming to meet President Trump’s July 4 deadline for signing the bill into law. Meanwhile, investors are closely watching the political developments alongside potential Federal Reserve interest rate cuts and looming tariff decisions that could influence economic stability
