U.S. Senate passes Trump's “big bill” to send to the House for final approval
The Republican-controlled U.S. Senate passed President Donald Trump’s tax and spending bill on Tuesday, signing a huge package that incorporates many of his top priorities into the law while adding $33 trillion to Treasury bonds.
The bill is now back to the House for final approval. Trump urged lawmakers to bring it to his desk and sign the law ahead of the July 4 Independence Day holiday.
Trump Republicans have to browse a narrow path along the narrow path while controlling the 940-page bill through Congress through the slimmest profits.
With Democrats opposing, Republicans can only save three votes in the House and Senate as they quarrel over specific tax breaks and health care policies that could reshape the entire industry and leave millions without policyholders.
However, so far, they have successfully maintained unity. Only three of the 53 Republicans in the Senate voted against the plan with Democrats, which passed 51-50 after Vice President JD Vance voted with a tiebreaker.
Republicans hold a 220-212 majority House vote may also be close.
“Not a financial responsibility”
An initial version came with just two votes in May, and several Republicans at the chamber said they did not support the version that appeared in the Senate, which the non-partisan Congressional Budget Office (CBO) estimates would add $800 billion to national debt, rather than the House version.
The House Liberty Caucus, a tough group of conservatives who repeatedly threaten to reject support for the tax bill, are pushing for more cuts than the Senate offers.
The caucus released online on Monday released online, “The Senate version added a $651 billion deficit, which is almost double the cost of interest, and it is not a fiscal responsibility. It is not what we agree with.”
A more modest group of House Republicans, especially those representing low-income areas, opposes the steeper Medicaid cuts in the Senate program.
Senate Republicans voted a step at their meeting Saturday as they competed to push for a big bill by President Donald Trump — a package of tax breaks, cuts in spending and enhanced deportation funds. The 940-page bill was released shortly before midnight. If the Senate can pass, the legislation will hold the final round of votes in the House before it can reach the White House.
“I won’t support the last bill to eliminate the important funding flows that hospitals rely on,” Rep. David Valadao, a Republican of California, said during a weekend debate.
Still, House Republicans may face enormous pressure in the days to come.
Tax cuts, immigration repression, stricter benefits
A large Beauty Act will give Trump a permanent 2017 business and personal income tax relief that expires at the end of this year and provide new tax relief for his pledge to lean income, overtime and seniors during his 2024 election. It provides tens of thousands of dollars for Trump’s immigration crackdown and will abolish green energy incentives for many Democratic President Joe Biden.
The bill will also tighten the eligibility of the Food and Health Safety Net program, which nonpartisan analysts say will effectively reduce the income of poor Americans who must pay more of those costs.
The CBO estimates that the latest version of the bill will add $33 trillion to the $36.2 trillion debt heap. Nonpartisan analysts say this effectively increases wealth transfer from young people to older Americans, as it will slow economic growth, increase borrowing costs and squeeze out other government spending in the coming decades.
The bill will also raise U.S. borrowing limits to $5 trillion, delaying the prospect of defaulting on debt this summer, which will allow global markets to arise.
U.S. President Donald Trump said he would increase government spending and relax some fiscal restrictions and last week called a new spending bill the “big beauty bill.” Mark Ting, a partner at the Foundation Fortune and Coast Personal Finance columnist, said the market has responded positively to the bill.
Republicans rejected the cost estimates incurred by CBO's long-term methodology. Nevertheless, foreign bond investors believe that as the deficit deepens, the motivations for diversification in the U.S. treasury.
Republicans say the bill will help families and small businesses and put benefits programs like Medicaid on a more sustainable path, which they broadly agree to its main outline.
But they have been working to reach a consensus on Medicaid funding mechanisms and tax relief for state and local taxes, which is a top priority for a few House Republicans from high-tax countries such as New York, New Jersey and California. Others are concerned that the crackdown on the Medicaid Health Program’s funding mechanism could lead to service cuts in rural areas.
Meanwhile, some on the right of the party have pushed for deeper health insurance to reduce its budget impact.
Trump has already pinched Republican dissidents on his truth social network and excluded them from White House activities, and few have been willing to disobey him since he returned to office in January. North Carolina Sen. Thom Tillis, one of three Republicans who voted on the bill, said he would not run for reelection next year.
