Senate Rushes Trump Tax Bill Amid GOP Divisions

The Senate is preparing for a crucial procedural vote during an unusual Saturday session as Republicans rush to pass President Donald Trump’s comprehensive package of tax breaks, spending cuts, and enhanced deportation funds by his July Fourth deadline. Republicans are leveraging their congressional majorities to bypass Democratic opposition, but they have encountered several political and policy hurdles. Not all Republican lawmakers are in agreement with proposals to reduce spending on Medicaid, food stamps, and other programs to help fund the extension of some $3.8 trillion in Trump tax breaks.

Ahead of the anticipated vote, the White House issued a statement expressing strong support for the bill, which implements key aspects of the president’s agenda. Trump himself was at his golf course in Virginia on Saturday, with GOP senators sharing updates on social media. Senate Majority Leader John Thune emphasized the urgency, stating, “It’s time to get this legislation across the finish line.” However, as the day progressed, billionaire Elon Musk criticized the package, calling it “utterly insane and destructive.”

The 940-page bill was released shortly before midnight on Friday, and senators are expected to engage in potentially all-night debates and numerous amendments in the days ahead. Senate passage could take several days, and the bill would need to return to the House for a final round of votes before reaching the White House. With narrow Republican majorities in both chambers, leaders need almost every lawmaker on board to overcome unified Democratic opposition. Senate Democratic leader Chuck Schumer criticized the rushed process, accusing Republicans of dropping the bill “in the dead of night” and rushing to finish it before the public fully understands its contents.

The weekend session could be a pivotal moment for Trump’s party, which has invested significant political capital in his signature domestic policy plan. Trump is urging Congress to finalize the legislation, even as he sometimes gives mixed signals about the timeline. At recent White House events, including Friday, Trump admonished GOP holdouts to fall in line. The legislation is an ambitious but complex series of GOP priorities. At its core, it aims to make permanent many of the tax breaks from Trump’s first term that would otherwise expire by year’s end, resulting in a potential tax increase on Americans. The bill also includes new breaks, such as no taxes on tips, and commits $350 billion to national security, including Trump’s mass deportation agenda.

However, the spending cuts that Republicans are relying on to offset the lost tax revenues are causing internal dissent. Some lawmakers argue that the cuts are too severe, particularly for those receiving healthcare through Medicaid. Meanwhile, conservatives, concerned about the nation’s debt, are pushing for deeper cuts. Several senators, including Thom Tillis, Rand Paul, and Ron Johnson, have expressed reservations about the bill. GOP Sen. Tim Sheehy of Montana has also stated that he will only support proceeding to the bill if a provision for public lands sales he opposes is removed with an amendment.

After facing setbacks, Republicans revised some proposals to comply with the Senate’s strict “Byrd Rule,” which largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. The final text includes a proposal for cuts to a Medicaid provider tax, which had faced parliamentary objections and opposition from several senators worried about the fate of rural hospitals. The new version extends the start date for those cuts and establishes a $25 billion fund to aid rural hospitals and providers. Most states impose the provider tax to boost federal Medicaid reimbursements, but some Republicans argue that it is a scam and should be abolished.

The nonpartisan Congressional Budget Office has stated that under the House-passed version of the bill, some 10.9 million more people would go without healthcare and at least 3 million fewer would qualify for food aid. The CBO has not yet publicly assessed the Senate draft, which proposes steeper reductions. Top income-earners would see about a $12,000 tax cut under the House bill, while the package would cost the poorest Americans $1,600, according to the CBO.

The Senate included a compromise over the so-called SALT provision, a deduction for state and local taxes that has been a top priority for lawmakers from high-tax states. The current SALT cap is $10,000 a year, and a handful of Republicans wanted to boost it to $40,000 a year. The final draft includes a $40,000 cap, but for five years instead of 10. Many Republican senators say that is still too generous, and at least one House GOP holdout, Rep. Nick LaLota of New York, had said that would be insufficient.

House leaders, who sent their colleagues home for the weekend with plans to be on call to return to Washington, have stated that they are “very close” to finishing up. “We would still like to meet that July Fourth, self-imposed deadline,” said Johnson. Johnson and Thune have stayed close to the White House, relying on Trump to pressure holdout lawmakers.