WASHINGTON — In a grueling overnight session stretching into early Saturday, Senate Republicans pushed through a comprehensive framework for tax breaks and spending cuts, despite strong Democratic resistance. This legislation, described by President Donald Trump as the “big, beautiful bill,” is central to his agenda. The arrangement passed narrowly, 51-48, primarily along party lines, despite dissent from two key Republicans. This milestone comes amid economic turbulence following Trump’s tariffs, which have rattled the stock market and raised fears of rising consumer costs and potential recession. Notably, Senators Susan Collins of Maine and Rand Paul of Kentucky opposed the measure.
Despite these challenges, Republicans, with Trump’s backing, are set to advance a tax cut bill through Congress, facing Democratic opposition similar to the scenario during Trump’s first term when the GOP controlled Washington. “Let the voting begin,” declared Senate Majority Leader John Thune, R-S.D., as the Senate prepared to initiate the process. Democrats, determined to complicate the GOP’s efforts, submitted around two dozen amendments targeting tax advantages for the wealthy, Trump’s tariffs, and protections for services such as Medicaid and Social Security. These were defeated, although one GOP amendment focused on safeguarding Medicare and Medicaid succeeded.
Democratic leader Chuck Schumer of New York criticized Republican policies, arguing they prepare to slash vital safety net programs to subsidize over $5 trillion in tax reductions he claims favor the affluent. Meanwhile, Republicans positioned their strategy as essential to averting a tax hike on American families, contending that Congressional inaction would cause individual and estate tax cuts from 2017 to expire later this year. The Senate plan embraces other Republican priorities, including significant funding to aid Trump’s immigration enforcement agenda and military buildup.
Senator John Barrasso, the Senate’s No. 2 Republican, remarked that the voters entrusted their party with a mandate, and the Senate’s budget plan fulfills that duty. “It fulfills our promises to secure the border, to rebuild our economy and to restore peace through strength,” Barrasso stated. Next, the framework proceeds to the House, where Speaker Mike Johnson, R-La., expects a vote soon, aiming for a conclusive version by Memorial Day. Differences between House and Senate versions need reconciliation; for instance, the House’s proposal includes $4.5 trillion in tax breaks and $2 trillion in cuts, affecting programs like Medicaid and food stamps.
In this arena, Senate Republicans countered Democratic amendments, often through unruly voice votes. Several amendments aimed at safeguarding safety net initiatives attracted bipartisan support, though Collins entirely opposed the package due to proposed Medicaid reductions. She warned these cuts would significantly harm vulnerable populations in her state. Meanwhile, Senator Paul questioned the financial assumptions behind the plan, fearing an increase in national debt. Senator Bill Cassidy of Louisiana expressed doubts over the tax breaks’ impact on deficits but noted assurances from Trump’s administration to pursue offsets elsewhere.
Looking forward, the House faces a challenge in accepting the Senate’s budget methods that extend tax cuts without projecting them to future deficits. A new analysis from the Joint Committee on Taxation estimates these cuts will add $5.5 trillion over the next decade, including interest. The Senate also appended an additional $1.5 trillion for implementing Trump’s campaign pledges, inflating the plan’s cost to $7 trillion. Republicans are advocating for augmenting the $10,000 deduction for state and local taxes, a change seen as crucial by lawmakers from states like New York and California.
Additionally, the House and Senate differ on the debt limit issue. The House proposed a $4 trillion increase, while the Senate suggests $5 trillion to delay future debt discussions until after next year’s midterm elections. The proposed Senate framework includes $4 billion in spending cuts as a starting point, with GOP leaders signaling more reductions are forthcoming. Fiscal conservatives are eyeing substantial spending cuts to offset tax cuts, though lawmakers in competitive areas worry about potential backlash for their electorate and political futures. The GOP leadership is advising patience, focusing first on securing a budget plan. Extending the 2017 tax cuts would benefit approximately three-quarters of households, though about 10% would experience increased taxes. By 2027, nearly 45% of the tax cut benefits would likely enrich individuals earning approximately $450,000 or more, as per the Urban-Brookings Tax Policy Center analysis.