The U.S. Senate has narrowly passed President Donald Trump’s sweeping tax-cut and spending legislation, a package that extends 2017 tax breaks, boosts military and immigration enforcement funding, and cuts social safety net programs like Medicaid and SNAP by $930 billion.
The 51-50 vote, with Vice President JD Vance casting the tiebreaker, followed intense debate over the bill’s $3.3 trillion deficit increase and its impact on healthcare and low-income Americans.
The legislation, which raises the debt ceiling by $5 trillion, now faces a contentious battle in the House, where some Republicans oppose certain provisions. Trump aims to sign it by July 4.
The bill extends Trump’s 2017 tax cuts, adds new breaks for tip and overtime income, and increases the child tax credit to $2,200 per child.
It also funds border wall construction ($46.5 billion) and immigration detention ($45 billion).
However, it imposes work requirements on Medicaid and SNAP recipients, potentially causing 12 million people to lose health coverage by 2034, per a Congressional Budget Office estimate.
States will face reduced federal funding, forcing tough choices on benefits or eligibility.
Rural hospitals, particularly in states like Alaska, secured $50 billion to offset Medicaid cuts after Senator Lisa Murkowski’s pivotal vote.
The legislation has sparked division.
Three Senate Republicans — Thom Tillis, Susan Collins, and Rand Paul — joined Democrats in opposing it, citing the ballooning $36.2 trillion national debt.
Critics, including Tesla CEO Elon Musk, decry the deficit increase and the elimination of electric vehicle tax credits.
The bill’s tax cuts disproportionately benefit high earners, with 60% of benefits going to the top 20% of households, according to the Tax Policy Center.
As the House debates the bill, its passage remains uncertain, with broader economic impacts — like higher interest rates — looming for Americans.