Senate Republicans have managed to pass President Donald Trump’s massive tax-and-spending bill, a package that could add $3.3 trillion to the national debt. The legislation is now set to move to the House of Representatives for potential final approval.
What Happened: The Senate passed the bill by a narrow margin on Tuesday, as reported by Reuters. The bill, which encompasses tax cuts, reductions in social safety net programs, and increased spending on the armed forces and immigration enforcement, is now headed to the House of Representatives. Despite opposition from some Republicans, Trump wants to sign it into law by the July 4 holiday.
The bill also extends Trump’s 2017 tax cuts, introduces new tax breaks for income from tips and overtime pay. It proposes to cut about $930 billion of spending on the Medicaid health program and food aid for low-income Americans. It also plans to repeal many of former President Joe Biden’s green-energy incentives.
The legislation, which has highlighted Republican divides over $36.2 trillion debt, would raise the federal government’s self-imposed debt ceiling by $5 trillion. The Senate passed the measure in a 51-50 vote with Vice President JD Vance breaking a tie. The vote followed an all-night debate in which Republicans grappled with the bill’s price tag and its impact on the healthcare system.
The vote in the House, where Republicans hold a 220-212 majority, is expected to be close. Trump, who will be “deeply involved” in pushing House Republicans to approve the bill, described it as a “great bill” and said that “it’s going to go very nicely in the House.”
Why It Matters: The bill has sparked controversy and opposition. Rep. Thomas Massie (R-Ky.) warned that the bill’s passage could downgrade the U.S. credit rating to BBB status, signaling financial distress.
Sen. Bernie Sanders (I-VT) criticized the bill as a “gift to the billionaire class,” causing harm to millions of working-class American families. Furthermore, Elon Musk, CEO of Tesla Inc., expressed his displeasure over the bill and threatened to launch an “America Party” if Congress approves the spending package.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
