Senate Passes Trump-Backed Bill Boosting Tax Cuts, Debt Ceiling by $5 Trillion

The Senate has passed a controversial budget reconciliation bill, dubbed the “One Big Beautiful Bill Act,” with Vice President JD Vance casting the decisive vote in a 50-50 deadlock. The legislation, backed by Donald Trump, aims to extend Trump’s 2017 tax cuts and introduce new exemptions for tipped and overtime income. It also seeks to boost funding for military operations and immigration enforcement, while outlining steep cuts to key social safety net programs like Medicaid and SNAP. Additionally, the bill includes a $5 trillion increase in the national debt ceiling, intensifying debates over economic priorities, social welfare, and climate policy.

The bill has sparked fierce debate across party lines, drawing criticism over proposed healthcare cuts, lack of safeguards around artificial intelligence, and tax policies widely seen as favoring the wealthy. Despite widespread calls for amendments, the bill passed after a 24-hour marathon session. It now heads to the House of Representatives, where internal Republican friction could complicate its path to final approval.

One notable omission from the bill is any mention of the growing challenges within the cryptocurrency sector, particularly those affecting miners. As block rewards for Bitcoin and other cryptocurrencies continue to decline over time due to halving events, many miners are already operating on thin margins. The absence of clear tax relief or regulatory guidance in this legislation adds to the burden faced by miners, potentially making mining operations in the U.S. less sustainable. Senator Cynthia Lummis was vocal in championing for less taxes for miners, advocating that miners and stakers have been taxed twice, once when they receive block rewards, and again when they sell it. However, such a reform was not noted in the final bill. Without supportive policies, the industry may struggle to remain competitive, weakening America’s position in the global digital asset landscape.

While Republicans were able to get the bill through the Senate, even staunch Trump supporters like Marjorie Taylor Greene are voicing concerns over the proposed policy changes. Former DOGE head, Elon Musk has even announced plans to create a new political party and oppose it, asserting that the country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE. Thus, as crypto advocates weigh new strategies amid political rifts and mounting industry challenges, the way forward remains uncertain for now.