Senate Advances Trump's $3.8 Trillion Tax Plan With 51-49 Vote

The Senate, under Republican control, advanced President Donald Trump’s comprehensive plan that includes tax breaks, spending cuts, and increased funding for deportation efforts. This move came after a dramatic vote that took place as midnight approached on Saturday. The vote tally was 51-49, with Vice President JD Vance present to potentially break a tie. The voting process was prolonged, lasting over three hours, as holdout senators engaged in negotiations and private meetings off the Senate floor. Ultimately, two Republicans, along with all 47 Democrats, opposed the motion to proceed with Trump’s signature domestic policy plan.

Trump celebrated the outcome on social media, describing it as a "GREAT VICTORY." However, the path to this victory has been fraught with political and policy challenges. Not all Republican lawmakers are in agreement with the proposals to reduce spending on programs like Medicaid and food stamps to offset the cost of extending tax breaks worth $3.8 trillion. Trump had previously threatened to campaign against Senator Thom Tillis of North Carolina, who opposed the bill due to concerns over Medicaid cuts that could leave many without healthcare. A nonpartisan analysis indicated that the Senate version of the bill would result in an additional 11.8 million people without health insurance by 2034. Tillis and Senator Rand Paul of Kentucky were the two Republicans who voted against the motion.

Elon Musk added to the pressure against the bill, criticizing it as "utterly insane and destructive." The Senate now faces an all-night debate and the consideration of amendments. If the bill passes, it will return to the House for final votes before heading to the White House. With narrow Republican majorities in both chambers, leaders need near-unanimous support from their lawmakers.

Senate Democratic leader Chuck Schumer of New York criticized the Republicans for releasing the bill late on Friday and rushing its passage before the public could fully understand its contents. He forced a full reading of the text, which began late Saturday and continued into Sunday morning. The legislation aims to make permanent many of the tax breaks from Trump’s first term, which would otherwise expire by the end of the year, potentially leading to a tax increase for Americans. The bill also includes new tax breaks, such as no taxes on tips, and commits $350 billion to national security, including Trump’s mass deportation agenda.

However, the proposed cutbacks to Medicaid, food stamps, and green energy investments have sparked dissent within the Republican ranks. Senator Ron Wyden of Oregon described the environmental rollbacks as a "death sentence" for America’s wind and solar industries. Republicans are relying on these reductions to offset lost tax revenues, but some lawmakers argue that the cuts are too severe, particularly for those receiving healthcare through Medicaid. Meanwhile, conservatives are pushing for even deeper cuts to address the nation’s debt.

As the roll call vote was in progress, attention focused on Senator Lisa Murkowski of Alaska, who was in intense conversation with GOP leaders. She ultimately voted "yes." Shortly after, Majority Leader John Thune of South Dakota met with holdout senators Rick Scott of Florida, Mike Lee of Utah, and Cynthia Lummis of Wyoming, along with Vance. The discussions continued, and Vance led them back to vote. Scott later mentioned meeting with the president, stating, "We all want to get to yes." Lee indicated that the group had discussed strategies for achieving more savings and deficit reduction, expressing optimism about the direction of the negotiations.

The release of the bill’s draft was delayed as the Senate parliamentarian reviewed the measure to ensure compliance with the chamber’s strict "Byrd Rule," which largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. Republicans faced several setbacks when proposals, such as shifting food stamp costs to the states or gutting the funding structure of the Consumer Financial Protection Bureau, were deemed out of compliance. However, Republicans quickly revised these proposals and reinstated them. The final text includes a proposal for cuts to the Medicaid provider tax, which had faced parliamentary hurdles and objections from several senators concerned about the fate of rural hospitals. The new version extends the start date for these cuts and establishes a $25 billion fund to aid rural hospitals and providers.

The House bill proposes a tax cut of about $12,000 for top income-earners, while the package would cost the poorest Americans $1,600, according to the Congressional Budget Office. The Senate included a compromise over the so-called SALT provision, a deduction for state and local taxes that has been a priority for lawmakers from high-tax states. The current SALT cap is $10,000 a year, and some Republicans wanted to boost it to $40,000 a year. The final draft includes a $40,000 cap but limits it for five years. Many Republican senators consider this cap too generous, while House Republicans are also not fully satisfied with the compromise. The House sent its colleagues home for the weekend with plans to be on call to return to Washington if needed.