Last Updated:July 01, 2025, 22:34 IST
The sprawling text, headlined by a $4.5 trillion renewal of US President Donald Trump's first term tax cuts, now heads to the House of Representatives

US President Donald Trump (Reuters image)
US Senate Republicans on Tuesday narrowly passed President Donald Trump’s big tax breaks and spending cuts bill, pushing past opposition from Democrats and their own GOP ranks after a turbulent overnight session.
Vice President JD Vance broke a 50-50 tie to push it over the top. The three Republicans opposing the bill were Sens Thom Tillis of North Carolina, Susan Collins of Maine and Sen Rand Paul of Kentucky.
✅ PASSED: @VP casts the deciding vote as the Senate approves the One Big Beautiful Bill — moving it back to the House and one step closer to President Trump's desk. pic.twitter.com/zAcMgrxS0z— Rapid Response 47 (@RapidResponse47) July 1, 2025
“Massive tax cuts, especially no tax on tips and overtime. And most importantly, big money for border security. This is a big win for the American people," Vance said in a post on social media platform X.
Massive tax cuts, especially no tax on tips and overtime. And most importantly, big money for border security. This is a big win for the American people.— JD Vance (@JDVance) July 1, 2025
The sprawling text, headlined by a $4.5 trillion renewal of Trump’s first term tax cuts, now heads to the House of Representatives. Republican leaders had struggled to corral support during a record 24-hour “vote-a-rama" amendment session on the Senate floor, as Democrats offered dozens of challenges to the most divisive aspects of the “big and beautiful" package.
WHAT DOES THE BILL PROPOSE?
Trump’s bill proposes a $4.5 trillion extension of his first term tax cuts, contentiously offset with $1.2 trillion in savings mainly targeting the Medicaid health insurance programme that will strip coverage from an estimated 12 million low-income and disabled Americans.
It also rolls back billions of dollars in green energy tax credits while providing a $350 billion infusion for border security and Trump’s mass migrant deportation programme.
Trump has made it clear that the goal remains to get the bill through the House in the coming days and sign it into law by July 4th Independence Day holiday, although he acknowledged that the self-imposed deadline could slip.
“It’s going to get in, it’s going to pass, and we’re going to be very happy," Trump told reporters.
WHY IS THE BILL UNPOPULAR?
Polls, however, show the bill is among the most unpopular ever considered across multiple demographic, age and income groups, and Democrats hope to leverage public anger ahead of the 2026 midterm elections when they aim to retake the House.
Backed by extensive independent analysis, they say the bill’s tax cuts would disproportionately benefit the wealthy at the expense of social safety net programmes for the poorest Americans.
“It’s bad legislation," Arizona Senator Mark Kelly told MSNBC. “If this passes, this is a political gift for Democrats."
The most high-profile opposition, however, has come in the shape of tech billionaire and estranged former Trump aide Elon Musk, who balked at the bill’s debt implications and stripping of clean energy subsidies.
In a dramatic reignition of his feud with Trump, Musk vowed to launch a new political party to challenge lawmakers who campaigned on reduced federal spending only to vote for the bill.
Musk – whose businesses include rocket company and government contractor SpaceX, which has about $22 billion in federal contracts – has been campaigning against the bill since quitting as a Trump adviser in May.
A furious Trump has said he will consider deporting Musk and ending federal funds for his companies. “Elon may get more subsidy than any human being in history, by far," he posted in a retort on social media, “and without subsidies, Elon would probably have to close up shop and head back home to South Africa."
(With agency inputs)
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First Published:News world US Senate Passes Trump's 'Big, Beautiful Bill' In Close Vote, JD Vance Breaks 50-50 Tie