Senate Republicans Pass $4.5 Trillion Tax Cut Bill

The Senate Republicans narrowly passed a significant legislative package, known as the “One Big Beautiful Bill Act,” which includes $4.5 trillion in tax cuts. The vote was a close call, with a 50-50 split and Vice President JD Vance casting the tie-breaking vote. Three Republican senators—Thom Tillis of North Carolina, Susan Collins of Maine, and Rand Paul of Kentucky—joined all Democrats in voting against the bill. Senate Majority Leader John Thune of South Dakota expressed relief, stating, “In the end we got the job done.”

The passage of the bill was not without its challenges. The package now returns to the House, where Speaker Mike Johnson of Louisiana had previously warned senators against making significant changes to the bill. However, the Senate did make alterations, particularly to Medicaid, which could lead to further complications. House GOP leaders have vowed to deliver the bill to President Trump by his July Fourth deadline.

This legislative victory is crucial for the president and his party, who have been deeply invested in the 940-page bill. The bill, which was formally titled the “One Big Beautiful Bill Act” before Democrats filed an amendment to strip out the name, represents a significant political achievement for Republicans. President Trump acknowledged the complexity of the bill, stating, “I don’t want to go too crazy with cuts. I don’t like cuts.”

The process leading up to the vote was intense and exhausting. What began as a routine day of amendment voting turned into an all-night session as Republican leaders worked to secure the necessary votes. Senate Majority Leader John Thune was particularly active, negotiating with various factions within his party to address concerns about Medicaid cuts and deficit reduction. The GOP leaders had no room for error, as they could afford to lose no more than three Republican senators. Two senators, Tillis and Paul, had already indicated their opposition, leaving little margin for further dissent.

Senators Lisa Murkowski of Alaska and Susan Collins also raised concerns about the bill’s impact on healthcare and the debt limit. Murkowski, in particular, became a focal point for GOP leaders as they sought to address her concerns about Medicaid reimbursements. Despite these efforts, Murkowski voted yes, while Collins voted no, citing broader issues with the bill.

The final package includes $4.5 trillion in tax cuts, making permanent Trump’s 2017 rates and adding new tax cuts, including no taxes on tips. The bill also rolls back billions of dollars in green energy tax credits, which Democrats warn will harm wind and solar investments. Additionally, the bill imposes $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements and changing federal reimbursements to states. The bill also provides a $350 billion infusion for border and national security, including funds for deportations, some of which will be paid for with new fees charged to immigrants.

Democrats, unable to stop the bill’s passage, attempted to delay the process by reading the full bill over the weekend. Senator Patty Murray of Washington raised concerns about the Republicans’ accounting method, which treats Trump’s first-term tax breaks as “current policy” and excludes their cost from deficit calculations. Murray argued that this “magic math” would not be acceptable to Americans trying to balance their own budgets.