WASHINGTON – In a closely contested vote, the United States Senate on Tuesday approved a sweeping tax and spending bill backed by former President Donald Trump. The legislation, dubbed the “One Big Beautiful Bill,” passed with a 51-50 vote, with Vice President J.D. Vance casting the tie-breaking vote.
The approval marks a significant development in the Republican agenda, aimed at extending tax cuts, expanding defence spending, and curbing federal welfare programs. The bill, however, has drawn sharp criticism for its projected impact on the national debt and social safety nets.
Key Highlights of the Bill
Extension of Trump-era tax cuts and introduction of new deductions, including those for tipped and overtime income.
Increased spending on defence and border enforcement.
Reductions in funding for Medicaid, food assistance, and clean energy incentives.
Debt ceiling raised by $5 trillion to prevent potential default.
Projected fiscal impact estimated at adding $3.3 trillion to the US deficit over the next decade.
Political and Public Reaction
While the bill received support from a majority of Republican senators, several members of the party—most notably Susan Collins, Rand Paul, and Thom Tillis—voted against it, citing concerns over fiscal responsibility and social welfare cuts.
Democrats and several public advocacy groups have criticised the legislation, describing it as heavily skewed in favour of high-income earners while undermining support systems for vulnerable communities.
Environmental groups have also raised alarms over the bill’s rollback of clean energy tax credits, calling it a setback for sustainable development initiatives.
Next Steps
The bill now moves to the House of Representatives, where it is expected to face further debate. Former President Trump has urged swift passage ahead of the upcoming Independence Day recess.
Financial markets responded cautiously, with modest gains in equities but heightened concerns in bond markets over rising debt levels.
This story has been reported by PakTribune. All rights reserved.