ISLAMABAD (PEN) : The U.S. Senate has passed President Donald Trump’s expansive tax and spending legislation by the slimmest of margins, setting up a contentious debate in the House of Representatives as lawmakers race to finalize the measure before the July 4 holiday.
The bill, approved 51–50 with Vice President J.D. Vance casting the tie-breaking vote, seeks to extend Trump’s 2017 tax cuts while adding new breaks for tipped income and overtime pay. It also proposes deep cuts to Medicaid and food assistance programs, while ramping up defense and immigration enforcement funding.
Bill Details: Tax Cuts, Spending Increases, and Debt Implications
The package would add an estimated $3.3 trillion to the national debt, according to the Congressional Budget Office (CBO). It raises the self-imposed federal debt ceiling by $5 trillion, a move required to avoid a future default. The bill repeals several of former President Joe Biden’s green energy incentives and slashes about $930 billion** from safety net programs like Medicaid and SNAP.
Trump praised the legislation, saying:
“It’s a great bill. There is something for everyone.”
Senate Vote Breakdown and Late Amendments
The bill passed after an all-night session, with three Republicans—*Thom Tillis, **Susan Collins, and **Rand Paul*—joining all 47 Democrats in opposition.
Key to securing the final vote was Senator *Lisa Murkowski*, who received assurances for additional funding to Alaska’s food aid programs and rural hospitals impacted by the Medicaid cuts.
Senate Democratic Leader *Chuck Schumer* called the passage:
“The largest assault on American healthcare and nutrition in history.”
House Battle: Narrow Margin and GOP Divisions
The legislation now moves to the House, where Republicans hold a slim *220–212 majority. Speaker **Mike Johnson* aims to bring it to a floor vote before Friday.
“Hopefully we’re voting on this by tomorrow or Thursday at latest,” Johnson said on Fox News, citing possible weather-related delays.
Several House Republicans have expressed reservations about the Senate version—particularly over steeper Medicaid cuts and limited state tax deductions for residents of high-tax states like *New York, **New Jersey, and California.
The *House Freedom Caucus* has criticized the bill’s price tag, while moderate Republicans from lower-income districts are wary of the impact on constituents.
Who Benefits? Tax Cuts and Wealth Transfer
According to the Tax Foundation, the Senate bill delivers the largest tax benefits to the top **1%* of earners, those making more than *\$663,000* annually in 2025. Independent analysts and the CBO project that nearly 12 million people* could lose health coverage under the proposed Medicaid changes.
The bill has also drawn criticism from *Elon Musk*, who denounced the rising debt burden and threatened to support challengers to GOP lawmakers backing the legislation.
