Trump’s “Big Beautiful Bill” Clears Senate Hurdle: A Step Toward Historic Tax Overhaul
Published Date: 29th Jun, 2025
Washington, D.C. — June 29, 2025
In a closely watched vote on Saturday, the U.S. Senate narrowly advanced President Donald Trump's sweeping tax and spending legislation, known as the "One Big Beautiful Bill Act," with a 51–49 procedural vote. The bill now moves to a full Senate debate, with a final vote expected by Monday.
A Divided GOP Pushes Forward
The legislation, spanning 940 pages, includes permanent extensions of the 2017 tax cuts, elimination of taxes on tips and overtime, increased military and border security funding, and significant reductions in Medicaid and nutrition assistance. Despite its passage, the bill faced internal GOP divisions, with Senators Thom Tillis and Rand Paul voting against advancing the measure due to concerns over Medicaid cuts and increased national debt. Senator Ron Johnson's late vote in favor prevented a tie that would have required Vice President JD Vance's intervention.
Key Provisions and Modifications
The Senate version of the bill introduces several changes from the House-passed version:
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Tax Deductions: The state and local tax (SALT) deduction cap is reduced from $40,000 to $10,000 for households earning up to $500,000.
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Medicaid Adjustments: Work requirements for Medicaid recipients with children over 14 are introduced, and certain funding cuts are delayed.
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Energy Credits: The rollback of clean energy tax credits is slowed, preserving incentives for geothermal, nuclear, and hydropower projects.
President Trump has urged Congress to pass the bill by July 4, emphasizing its potential to boost economic growth and job creation.
Bipartisan Concerns and Criticisms
Democrats unanimously oppose the bill, citing potential erosion of the social safety net and large tax cuts for high-income earners. The Congressional Budget Office estimates the bill would increase the deficit by approximately $3.3 trillion compared to the House version and reduce health insurance coverage by 11.8 million people by 2034. Additionally, tech entrepreneur Elon Musk criticized the legislation, particularly its potential impact on the electric vehicle sector.
Next Steps
With the Senate's procedural hurdle cleared, the bill will undergo up to 20 hours of debate and a marathon amendment session before a final vote. If passed, it will return to the House for final approval before reaching President Trump's desk for signing.
Date: 29th Jun, 2025
