The Senate passed President Donald Trump’s tax and budget package after Vice President JD Vance voted to break a tie. The final approval came after approximately 27 hours of voting on amendments that started the morning of Monday, June 30 and lasted until noon Tuesday, July 1.
Fifty Republicans voted in favor of the package, every single Democrat opposed, along with three Republicans – Sens. Susan Collins of Maine, Thom Tillis of North Carolina, and Rand Paul of Kentucky.
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- Renews Trump’s 2017 tax cuts, which were set to expire at the end of the year;
- Increases the state and local tax deduction from $10,000 per year to $40,000;
- Increases annual child tax credit to $2,200;
- Provides Customs and Border Protection with $46.5 billion for the border wall and other infrastructure;
- Gives $153 million to the military to build new ships and create missile defense systems;
- Implements Medicaid work requirements for able bodied adults that don’t have children; and
- Changes the Medicaid state-federal cost share system.
Republicans said the bill will save the federal government money, spur economic growth and create jobs.
“The American people sent President Trump and Republican majorities to Washington with a clear mandate: secure the border, restore peace through strength and American energy dominance, and give working families and small businesses relief from the Biden economy,” Sen. Mitch McConnell, R-Ky., said in a statement. “Our votes today are a step toward fulfilling that duty.”
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Democrats claim the bill will add $3.3 trillion to the national debt over 10 years, citing long-term tax cut extensions and federal spending shifts. Republicans dispute the figure, saying the bill will spur growth.
Democrats said the bill will cause millions of Americans to lose their health care coverage, cut jobs, and add $3.3 trillion to the national debt over the next decade.
“Let’s make one thing clear – there is nothing ‘beautiful’ about slashing health care coverage for 17 million Americans all so President Trump can deliver a shiny tax cut to the wealthiest individuals and corporations,” Sen. Dick Durbin, D-Ill., said in a statement. “To make matters worse, Senate Republicans voted to close rural hospitals and take food off the table of millions of Americans, including children, seniors, and veterans, to pay for this outrageous giveaway.”
Where does the bill go next?
The package now heads back to the House of Representatives, where the chamber will need to approve it for a second time. The House already passed its own version on May 22 by a single vote, but because the Senate made changes, the House needs to approve it again.
Republicans are working to pass the reconciliation package by July 4. A self-imposed deadline that appears unreachable based on Congress’ strict rules and procedures.
Trump had been pressuring lawmakers to get it done by Independence Day but recently gave them some leeway.
“It’s not the end-all,” Trump told reporters. “It can go longer, but we’d like to get it done by that time if possible.”
Fiscal hawks in the House have said they are not happy with some of the Senate’s changes. They are demanding the package be changed back to be more in line with the House’s original version.
