Senate advances Trump’s tax break and spending cut plan

TIMES Report
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US President Donald Trump addressess the press. Photo: AP/UNB

In a dramatic late-night session, the Republican-led Senate pushed forward President Donald Trump’s sweeping tax and spending package, overcoming fierce Democratic opposition and internal GOP dissent. The 51-49 vote, with Vice President JD Vance presiding, cleared a critical procedural hurdle just before midnight Saturday, setting the stage for final passage ahead of Trump’s July 4 deadline.

Two Republicans – Sens. Thom Tillis (NC) and Rand Paul (Ky) – joined all 47 Democrats in opposing the motion, highlighting divisions within the GOP over deep cuts to Medicaid, food stamps, and green energy programs meant to offset $3.8 trillion in extended Trump-era tax breaks.

“A GREAT VICTORY,” Trump declared on social media after the vote, though the bill faces further amendments and a final House vote before reaching his desk.

The 940-page legislation would permanently extend expiring Trump tax cuts, eliminate taxes on tipped wages, and allocate $350 billion for national security – including funding for Trump’s immigration enforcement agenda. But its reductions to safety-net programs have drawn sharp criticism, even from conservatives.

Tillis, who voted against the bill, cited concerns over Medicaid cuts that a Congressional Budget Office analysis warned could leave 11.8 million more Americans uninsured by 2034. Elon Musk slammed the plan as “utterly insane and destructive,” while Sen Ron Wyden (D-Ore) called its environmental rollbacks a “death sentence” for renewable energy.

The vote followed hours of suspense as GOP leaders scrambled to secure support. Vice President Vance and Majority Leader John Thune (R-SD) huddled with holdouts, including Sens Rick Scott (Fla), Mike Lee (Utah), and Cynthia Lummis (Wyo), before securing their backing.

Democrats, meanwhile, accused Republicans of rushing the bill. Senate Minority Leader Chuck Schumer (D-NY) forced an overnight reading of the text, which stretched into Sunday morning.

Republicans revised the bill after the Senate parliamentarian rejected several provisions, including a plan to shift food stamp costs to states. The final version delays Medicaid cuts and creates a $25 billion fund for rural hospitals – a concession to wary senators.

The bill also includes a five-year, $40,000 cap on state and local tax (SALT) deductions, a compromise that left both House and Senate Republicans dissatisfied.

With narrow GOP majorities in both chambers, leaders can afford few defections. House Speaker Mike Johnson has kept members on standby to return for a final vote.

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