Senate to Vote on Trump's 'Big, Beautiful Bill': Here's What It Contains
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
The U.S. Senate is working through the weekend to pass President Donald Trump's comprehensive domestic policy bill, a sprawling 940-page piece of legislation that Republicans are calling crucial for the nation's economic future.
The U.S. House of Representatives has already passed their version, and senators are now working to finalize their draft before sending it back for a final House vote while Democrats remain united in opposition to the package.
Why It Matters
This legislation represents Trump's signature domestic policy initiative, combining massive tax cuts with significant spending on border security and defense while implementing substantial cuts to social safety net programs.
The Congressional Budget Office (CBO), which is nonpartisan, estimates the House's version would add $2.4 trillion to the nation's deficit over the next decade, though Republicans dispute this calculation. The bill's passage would fundamentally reshape federal spending priorities and tax policy, affecting millions of Americans across income levels.
What To Know
The bill centers on approximately $3.8 trillion in tax cuts, making permanent the tax rates and brackets from Trump's first term while adding new exemptions for tips, overtime pay, and some automotive loans. The legislation would increase the child tax credit from $2,000 to $2,200 and provide a $6,000 deduction for older adults earning under $75,000 annually. The state and local tax (SALT) deduction cap would increase from $10,000 to $40,000 for five years.
For border security and immigration enforcement, the package allocates $350 billion, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds. The plan aims to deport approximately 1 million people annually through hiring 10,000 new U.S. Immigration and Customs Enforcement (ICE) officers and expanding Border Patrol forces.
To offset costs, Republicans propose significant cuts to Medicaid, food stamps, and green energy programs, potentially saving $1.5 trillion. The legislation would impose new 80-hour monthly work requirements for Medicaid and food stamp recipients up to age 65, while rolling back former President Joe Biden-era's renewable energy tax incentives. The CBO estimates these changes would leave 10.9 million more people without health coverage and 3 million without food stamp eligibility.
Additional provisions include $25 billion for the "Golden Dome" missile defense system, establishment of "Trump Accounts" children's savings program, and $40 million for a "National Garden of American Heroes."
The bill also restricts artificial intelligence (AI) development, blocks transgender surgeries, and directs the sale of up to 1.2 million acres of public land for housing development.
The U.S. Capitol is seen on June 28 in Washington, D.C.
The U.S. Capitol is seen on June 28 in Washington, D.C.What People Are Saying
President Donald Trump on Truth Social on Friday: "The Great Republicans in the U.S. Senate are working all weekend to finish our 'ONE, BIG, BEAUTIFUL BILL.' We are on the precipice of delivering Massive General Tax Cuts, NO TAX ON TIPS, NO TAX ON OVERTIME, NO TAX ON SOCIAL SECURITY FOR OUR SENIORS, Permanently Securing our Borders, an even Bigger and More Powerful Military."
House Republicans' X, formerly Twitter, account wrote on Friday: "House Republicans are united and ready to DELIVER the largest tax cut for working and middle-class Americans in history. The One Big Beautiful Bill Act will unleash our economy and restore the American Dream."
Senate Democratic Leader Chuck Schumer of New York wrote on X on Saturday: "BREAKING: I will object to Republicans moving forward on their Big, Ugly Bill without reading it on the Senate floor. Republicans won't tell America what's in the bill. So Democrats are forcing it to be read start to finish on the floor. We will be here all night if that's what it takes to read it."
Trump on Truth Social on Saturday: "WHY ARE THE DEMOCRATS ALWAYS ROOTING AGAINST AMERICA???"
Tech billionaire and MAGA ally Elon Musk wrote on X on Saturday: "Polls show that this bill is political suicide for the Republican Party." In his post, he shared polling data from The Tarrance Group that showed majority opposition across different voter groups.
What Happens Next
The Senate must complete its work and pass the bill before sending it back to the House for a final vote. Trump has demanded the legislation reach his desk by July 4th. With Democrats united in opposition and some Republican concerns emerging over provisions affecting rural hospitals and AI restrictions, the timeline remains uncertain.
Reporting from the Associated Press contributed to this article.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Boston Globe
37 minutes ago
- Boston Globe
History, schmistory — MAGA has its eyes on the future
Advertisement However, if the issues that MAGA Americans find most vexing are either solved or substantially improved (by data and objective sources), their continued contempt for history will be justified and little attention will be given to precedent. In this scenario, all established American institutions will be in some form of jeopardy. I attribute the continued success of the MAGA ideology and its practices to a desire of many to deal with problems simply and in a straightforward manner. I also contend that this methodology is itself too simple and lacks the depth needed to solve complex problems. Advertisement As our Framers taught us all those years ago, successful outcomes are the result of intelligent, detailed, and informed compromise, which, sadly, is in short supply these days. Peter Vangsness Medway
CNBC
an hour ago
- CNBC
The global week ahead: A hectic half first heralds a volatile second
"Politics isn't wagging the tail – it's shaking the entire dog." These strong words from one wealth manager to CNBC last week capture a hectic first half of trading. They also set the stage for an uncertain second half, where "geoeconomics" looks set to remain a dominant market force. This week, expect attention to return to monetary policy, as central bankers from across the globe — who have kept their heads down amid political tensions — prepare to speak at the ECB Forum in Sintra, Portugal. A lot has happened in the last six months, with trade tensions and truces sending equity markets across the globe haywire. The VIX volatility index — also known as the Wall Street fear gauge — spiked in April as tariff threats, followed by tariff pauses, caused huge intraday swings across major indices. Meanwhile, "black swan" moments in the Middle East also kept investors on edge. Amid all the uncertainty, some stock markets showed remarkable resilience: Germany's Dax remains the outperformer in Europe, up over 18% so far this year, followed by London's FTSE 100 up around 9%, while the French CAC 40 lags with around 5% gains. But what does this all mean for trading in the second half of the year? Goldman Sachs warns that, "elevated policy uncertainty paired with a worsening macro backdrop are likely to support higher equity volatility in the next months."As Goldman's warning rings loudly in investors' ears, the stage is set for central banks to return to the limelight. This week, the town of Sintra in Portugal plays host to the annual ECB Forum, where European central bankers are joined by their international counterparts to exchange views on current policy issues. The sun may well be shining in Portugal — but President Donald Trump's recent comments will no doubt cast a shadow over the meeting, as he continues to put unprecedented pressure on Federal Reserve Chair Jerome Powell. Just last week, Trump's name-calling of Powell ramped up, sparking talk of a so-called "shadow Fed chair," who could keep an eye on things until taking over as chair next year. Powell also put the pressure on his monetary policy peers, calling on central bankers to hold steady until they see the impact of trade tariffs: "We are well positioned to wait and learn more about the likely course of the economy before considering any adjustments to our policy stance." Europe will need to decide how much it lets the U.S. approach dictate its policy, with ECB President Christine Lagarde opening proceedings in Sintra with a speech on Monday evening. Expect a punchy tone; her recent op-ed in the Financial Times saw her call for the euro to take advantage of the current environment and "gain global prominence." Next Friday marks the first anniversary of the Labour Party taking power in the U.K., following 14 years of Conservative rule. A landslide victory saw a jubilant Labour return to Downing Street with the promise of change and growth. But the honeymoon period was short-lived. Fast-forward 12 months and Prime Minister Keir Starmer looks set to reach his first year in office with plummeting approval ratings which put him below his rival party leaders, including Reform's Nigel Farage, Liberal Democrat Sir Ed Davey and Conservative leader Kemi Badenoch. Starmer has faced a lot of external pressure, ranging from a public spat with Elon Musk to a slew of foreign policy challenges in Ukraine and the Middle East. Even three trade deals — with Europe, India and the very first U.S. agreement — did little to improve his popularity. But the economic challenges at home are causing the most discontent, with pressure even from within his own party to review certain reforms.
Yahoo
an hour ago
- Yahoo
Senate Republicans advance Trump's tax and spending cuts bill after dramatic late-night vote
WASHINGTON (AP) — Senate Republicans voting in a dramatic late Saturday session narrowly cleared a key procedural step as they race to advance President Donald Trump's package of tax breaks, spending cuts and bolstered deportation funds by his July Fourth deadline. The tally, 51-49, came after a tumultuous night with Vice President JD Vance at the Capitol to break a potential tie. Tense scenes played out in the chamber as voting came to a standstill, dragging for more than three hours as holdout senators huddled for negotiations, and took private meetings off the floor. In the end, two Republicans opposed the motion to proceed, joining all Democrats. There's still a long weekend of work to come. Republicans are using their majorities in Congress to push aside Democratic opposition, but they have run into a series of political and policy setbacks. Not all GOP lawmakers are on board with proposals to reduce spending on Medicaid, food stamps and other programs as a way to help cover the cost of extending some $3.8 trillion in Trump tax breaks. 'It's time to get this legislation across the finish line,' said Senate Majority Leader John Thune, R-S.D. Ahead of roll call, the White House released a statement of administrative policy saying it 'strongly supports passage' of the bill. Trump himself was at his golf course in Virginia on Saturday with GOP senators posting about the visit on social media. But by nightfall, Trump was lashing out against holdouts, threatening to campaign against one Republican, Sen. Thom Tillis of North Carolina, who had announced he could not support the bill because of grave Medicaid cuts that he worried would leave many without health care in his state. Tillis and Sen. Rand Paul of Kentucky voted against. The president was working the phones from the Oval Office late Saturday night, according to a person familiar with the discussions who was not authorized to speak publicly and spoke on condition of anonymity. Pressure was mounting from all sides — billionaire Elon Musk criticized the package as 'utterly insane and destructive.' The 940-page "One Big Beautiful Bill Act was released shortly before midnight Friday, and senators are expected to grind through all-night debate and amendments in the days ahead. If the Senate is able to pass it, the bill would go back to the House for a final round of votes before it could reach the White House. With the narrow Republican majorities in the House and Senate, leaders need almost every lawmaker on board. A new analysis from the nonpartisan Congressional Budget Office said the Senate bill would increase by 11.8 million the number of people without health insurance in 2034. Senate Democratic leader Chuck Schumer of New York said Republicans unveiled the bill 'in the dead of night' and are rushing to finish the bill before the public fully knows what's in it. He immediately forced a full reading of the text late Saturday in the Senate, which would take hours. Make-or-break moment for GOP The weekend session could be a make-or-break moment for Trump's party, which has invested much of its political capital on his signature domestic policy plan. Trump is pushing Congress to wrap it up and has admonished the 'grandstanders' among GOP holdouts to fall in line. The legislation is an ambitious but complicated series of GOP priorities. At its core, it would make permanent many of the tax breaks from Trump's first term that would otherwise expire by year's end if Congress fails to act, resulting in a potential tax increase on Americans. The bill would add new breaks, including no taxes on tips, and commit $350 billion to national security, including for Trump's mass deportation agenda. But the cutbacks to Medicaid, food stamps and green energy investments, which a top Democrat, Sen. Ron Wyden of Oregon said would be a 'death sentence' for America's wind and solar industries, are also causing dissent within GOP ranks. The Republicans are relying on the reductions to offset the lost tax revenues but some lawmakers say the cuts go too far, particularly for people receiving health care through Medicaid. Meanwhile, conservatives, worried about the nation's debt, are pushing for steeper cuts. Tillis said he spoke with Trump late Friday explaining his concerns. Paul of Kentucky had been opposed to the bill's provision to raise the nation's debt limit by $5 trillion. And GOP Sen. Ron Johnson of Wisconsin, who initially voted no, switched hours later after private talks to agree to advance the bill. As the roll call teetered, attention turned to Sen. Lisa Murkowski of Alaska who was surrounded by GOP leaders in intense conversation. She voted to proceed. A short time later, Thune drew conservative holdouts Sen. Rick Scott of Florida, Mike Lee of Utah and Cynthia Lummis of Wyoming to his office, with Vance and Johnson also joining. Talks dragged on. Then swiftly, Vance led them all back in to vote. Later, Scott said he had met with the president, adding, 'We all want to get to yes.' Lee said the group "had an internal discussion about the strategy to achieve more savings and more deficit reduction, and I feel good about the direction where this is going, and more to come.' After setbacks, Republicans revise some proposals The release of the bill's draft had been delayed as the Senate parliamentarian reviewed the measure to ensure it complied with the chamber's strict 'Byrd Rule,' named for the late Sen. Robert C. Byrd, It largely bars policy matters from inclusion in budget bills unless a provision can get 60 votes to overcome objections. That would be a tall order in a Senate with a 53-47 GOP edge and Democrats unified against Trump's bill. Republicans suffered a series of setbacks after several proposals, including shifting food stamp costs from the federal government to the states or gutting the funding structure of the Consumer Financial Protection Bureau, were deemed out of compliance with the rules. But over the past days, Republicans have quickly revised those proposals and reinstated them. The final text includes a proposal for cuts to the Medicaid provider tax that had run into parliamentary hurdles and objections from several senators worried about the fate of rural hospitals. The new version extends the start date for those cuts and establishes a $25 billion fund to aid rural hospitals and providers. The CBO had said that under the House-passed version of the bill, some 10.9 million more people would go without health care and at least 3 million fewer would qualify for food aid. The budget office has started releasing initial assessments of the Senate draft, which proposes steeper reductions. Top income-earners would see about a $12,000 tax cut under the House bill, while the package would cost the poorest Americans $1,600, the CBO said. SALT dispute shakes things up The Senate included a compromise over the so-called SALT provision, a deduction for state and local taxes that has been a top priority of lawmakers from New York and other high-tax states, but the issue remains unsettled. The current SALT cap is $10,000 a year, and a handful of Republicans wanted to boost it to $40,000 a year. The final draft includes a $40,000 cap, but limits it for five years. Many Republican senators say that is still too generous, but House Republicans are not fully satisfied either. House Speaker Mike Johnson sent his colleagues home for the weekend with plans to be on call to return to Washington. ___ Associated Press writers Ali Swenson, Fatima Hussein, Michelle L. Price and Matthew Daly contributed to this report.
