WASHINGTON, July 2, 2025 — In a high-stakes overnight session, the U.S. Senate passed the Trump tax and spending bill with the narrowest of margins. The vote split 50-50 along party lines, with Vice President JD Vance casting the tie-breaking vote in favor. The passage marks a significant step forward for President Donald Trump’s sweeping economic agenda and sends the bill back to the House of Representatives for final approval.
Three Republican senators—Thom Tillis of North Carolina, Susan Collins of Maine, and Rand Paul of Kentucky—broke ranks and voted with Democrats against the Trump tax and spending bill, citing concerns over healthcare cuts and ballooning national debt.
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Major Provisions of the Trump Tax and Spending Bill
The Trump tax and spending bill proposes to:
- Extend the 2017 tax cuts and introduce new tax breaks for tipped and overtime wages.
- Slash nearly $930 billion from Medicaid and food assistance programs.
- Increase funding for military operations and immigration enforcement.
- Repeal many green energy incentives from the previous administration.
- Raise the federal debt ceiling by $5 trillion and add $3.3 trillion to the national debt over 10 years.
Despite these sweeping changes, the bill has been met with fierce criticism from Democrats and mixed reactions within the Republican Party. Lawmakers are expected to continue facing challenges as the bill moves through the House, especially with Trump’s July 4 signing deadline fast approaching.
GOP Divides Exposed
The Trump tax and spending bill has created visible rifts within the GOP. While conservatives pushed for deeper cuts to reduce government spending, moderate Republicans voiced concerns about the severe Medicaid reductions and their impact on rural hospitals and low-income families.
Sen. Thom Tillis, under pressure from Trump and recently announcing he would not seek reelection in 2026, voted against the Trump tax and spending bill. He was also the lone senator to oppose an amendment that removed a controversial ban on state AI regulations—an issue that had become a sticking point for several lawmakers.
Sen. Marsha Blackburn of Tennessee led the successful 99-1 vote to strike the AI provision, showcasing rare bipartisan unity during an otherwise fiercely partisan debate.
House Vote Expected by July 3
House Speaker Mike Johnson announced plans to hold a full House vote on the Trump tax and spending bill by July 3, despite potential weather-related delays in lawmakers’ travel plans. With a slim 220-212 Republican majority in the House, the outcome is expected to be extremely close.
Trump has urged House Republicans to support the legislation, calling it “a great bill with something for everyone.” The former president remains actively involved, pressuring GOP members to deliver the victory he seeks ahead of Independence Day.
Economic and Social Impact
Independent analysis shows that the Trump tax and spending bill would overwhelmingly benefit the top 1% of earners, with households making over $663,000 annually receiving the largest tax breaks. Meanwhile, the steep cuts to Medicaid and food aid could leave nearly 12 million more Americans uninsured and increase living costs for low-income families.
Critics argue that the bill represents a significant redistribution of wealth, shifting resources from younger Americans to older, wealthier citizens. Senate Democratic Leader Chuck Schumer condemned the bill, saying it “rips healthcare away from millions and puts hungry children at even greater risk.”
Republicans defending the Trump tax and spending bill argue that reforms target only “waste, fraud, and abuse,” and will strengthen the economy long-term. However, the Congressional Budget Office projects the bill would add $800 billion more to the national debt than the House’s original version.
What’s Next?
The final vote in the House will determine whether the Trump tax and spending bill becomes law. Trump and House leadership are pushing hard to meet the self-imposed July 4 deadline. But opposition from moderates in high-tax states and conservatives seeking deeper cuts may stall the process.
As the debate continues, the Trump tax and spending bill remains one of the most consequential and polarizing pieces of legislation in recent U.S. history—impacting taxes, healthcare, national debt, and the political future of many lawmakers involved.
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