
US Senate approves Trump's divisive spending bill
Senate Majority Leader John Thune was able to turn around two moderates considering siding with Democrats, to deliver a 50-50 vote, with Vice President JD Vance breaking the tie.
The sprawling text now heads to the House of Representatives, where it faces unified Democratic opposition and multiple Republicans balking at slashed health care and food aid programs for poor Americans.
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 program 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 program.
The president made clear that the goal remains to get the bill through the House in the coming days and sign it into law by Friday's July 4 th 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," he told reporters as arrived in Florida to view new migrant detention facilities.
'Bad legislation'
Polls 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 programs for the poorest Americans. "It's bad legislation," Arizona Senator Mark Kelly told MSNBC. "If this passes, this is a political gift for Democrats."
Partner service
A handful of senators in the Republican majority had also threatened to upset the apple cart, echoing Democratic concerns that the bill would add more than $3.3 trillion to the nation's already yawning budget deficits over a decade.
The most high-profile opposition has come from outside Congress, however, 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 advisor in May. A furious Trump on Tuesday said he would consider deporting Musk and ending federal funds for his companies. "Elon may get more subsidy than any human being in history, by far," Trump 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."
Focus on House
Although the House of Representatives has already passed its own version of the bill, it will have to come back to the lower chamber for a final rubber stamp before it reaches Trump's desk. House Republicans were watching anxiously from the sidelines to see if their Senate colleagues would adopt changes that would be hard for Speaker Mike Johnson to sell to his lawmakers.
Fiscal hawks in the lower chamber are furious at what they say is $651 billion of extra deficit spending in the Senate's tweaks. A House vote could come as early as Wednesday but even with full attendance, House Republicans can only afford to lose three votes. "We're going to pass this bill one way or the other," Johnson told reporters at the Capitol on Monday.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Euronews
38 minutes ago
- Euronews
Trump threatens Musk with DOGE and deportation as feud reignites
US President Donald Trump has suggested that his administration would "take a look" at deporting Elon Musk after a feud between the pair reignited in spectacular fashion. As the public war of words between the former political allies escalated on Tuesday, Trump also said that the so-called Department of Government Efficiency (DOGE) — which the tech billionaire formerly spearheaded — could review the massive US government subsidies awarded to Musk's businesses, which include Tesla and SpaceX. When asked by a reporter on Tuesday if he was considering deporting Musk, a South African national and a naturalized US citizen, Trump said: "I don't know, we'll have to take a look." "We might have to put DOGE on Elon. You know what DOGE is. DOGE is the monster that might have to go back and eat Elon," Trump said. "If DOGE looks at Musk, we're going to save a fortune," he added later on Tuesday. Although Musk heavily backed Trump during his reelection campaign and was rewarded with the DOGE project, their alliance appeared to come to a dramatic end a month ago. Trading blows over Trump's bill The beef between the pair began in early June when Musk criticised Trump's tax cuts and spending bill, calling it a "disgusting abomination". In response, Trump threatened to target Musk's companies, with the tech mogul in turn calling for the US president to be impeached. While Musk backtracked on some of his attacks and Trump wished him well, hostilities resumed on Monday when the world's richest man once again criticised the tax cuts and spending bill, which the US president has described as "big and beautiful". Musk lashed out at Republicans for backing the bill, referring to it as "political suicide" and calling the GOP the "Porky Pig party". He also renewed threats to start a new political party, called the "America Party", if the bill passed. The legislation was passed by the US Senate on Tuesday by the narrowest of margins, and now goes back to the House for possible final approval. The US "needs an alternative to the Democrat-Republican uniparty so that the people actually have a voice," Musk wrote on Monday on X, the social media platform he owns. That came after Musk, who spent hundreds of millions of dollars on Trump's reelection campaign, said in May that he would likely spend "a lot less" on politics in the future. In response to Musk's latest criticism and threats, Trump on Tuesday suggested that Musk could lose subsidies for his businesses. "No more rocket launches, satellites, or electric car production, and our country would save a fortune," the US president wrote on Truth Social. Without subsidies, Musk "would probably have to close up shop and head back home to South Africa," Trump added. Musk, for his part, has continued to criticise the tax cuts and spending bill on X, sharing posts that supported his view of the legislation, including memes and claims that it would drive up the national debt.


France 24
an hour ago
- France 24
Is 'AC guilt' justified? French papers divided over use of air conditioning amid heatwave
Russia 's ongoing disinformation efforts are intensifying. Tech magazine Wired says the Kremlin is using free AI tools to fuel "pro-Russian narratives" in many countries overseas, but most notably in Ukraine. This comes in the form of not only videos and pictures, but also QR codes and fake media pages. What's new is the intensity and sophistication of the fakes. The paper cites a report saying that between September 2024 and May 2025, the amount of content "has increased dramatically" and is being viewed by millions of people around the world. But Russia's disinformation efforts aren't just international. Russian independent paper The Moscow Times reports that the Kremlin has launched an online bot campaign inside Russia to justify the country's "biggest utility rate hikes in years". More than 10,000 bot comments were analysed and many of them defended the hikes, framing them as beneficial or simply routine. Some even claimed that wages in Russia are also increasing. Moving to the US, Trump is reigniting fears of a global trade war. This time, the US president is pushing Japan to agree to a trade deal by July 9. The Financial Times reports that Trump is threatening to raise tariffs on Japan again, this time by 30 to 35 percent. Japan Today reports that Trump used the argument that Japan is not importing enough American rice, in a post on Truth Social. The paper says that Trump "singled out Japan in a way he rarely does online". The Wall Street Journal is analysing the divide by looking at the car industry. The American paper cites people familiar with the matter who say that Americans might demand "a cap on the number of vehicles exported by Japan" into the US. But Japanese officials are standing their ground, refusing any deal that preserves Trump's 25 percent auto tariff. The paper says that Trump used the rice argument, despite Japan's imports worth "hundreds of thousands of tons of US rice annually". The Japan Times' s headline asks the question: "Is the shine coming off the US-Japan 'Golden Age'?" The paper says that as recently as January, Trump described the relationship between the two countries as "a friendship like few others", but not even half a year later, cracks are appearing. The trade talks have stalled, and a distance has opened between the US and Japan on what's happening in the Middle East. Staying in Japan, the rigid hierarchies of Japanese companies are pushing people to find innovative ways out. The Washington Post reports that if you're avoiding your boss, "in Japan, you can hire someone to quit your job for you". The article talks about "proxy quitter" companies, whose agents "quit on behalf of clients" who want to avoid the awkward conversation. People use the service because they've been harassed at work, for instance, or if they weren't allowed to express their concerns freely, due to the strict work culture in the country. Finally, Europe's scorching heatwave is igniting a divisive debate in France, and it's all about air conditioning. A "pro-AC" column in right-wing paper Le Figaro notes that more and more French people are thinking of investing in an air conditioner, not without a "certain amount of guilt". Le Figaro asks, however: "Is this guilt really justified?". Left-wing paper Libération asks what the alternatives are and quotes experts who say that adopting energy-consuming AC is a sign of bad adaptation to climate change. And the heated debate isn't just in newspaper columns. "Team air conditioning" versus "team open window" is very much present in the office, writes French newspaper Les Echos. The financial daily says that each person has a different perception of temperature, depending on their sex, health or other factors. And body regulation depends on all of those factors. As a result, adjusting the air conditioning can generate high tensions, particularly in open plan offices.


Euronews
an hour ago
- Euronews
EU and US aim towards agreement to avoid 50% tariffs by 9 July
The EU and the US are moving toward an agreement that would take the form of a headline 'political understanding' to resolve their tariff dispute before the 9 July deadline, rather than a comprehensive deal, according to several diplomats and an EU official. 'If there is to be an agreement, the most realistic outcome would likely be a general framework or a 'principle agreement' — something that, due to time constraints, would resemble the kind of understanding the US has reached with the UK or even with China,' a senior EU diplomat said. 'This would not be a detailed, comprehensive trade deal, but rather a political understanding laying the groundwork for more concrete arrangements," they added. The potential agreement was discussed at a behind-closed-doors meeting in Brussels on Monday, with European Commission officials briefing EU ambassadors about the ongoing negotiations between the EU and the US. Ambassadors were also informed of a new US counterproposal, which offered 'nothing very concrete', one of the diplomats said. Both sides under pressure The EU and the US are under pressure from the looming 9 July deadline, after which US President Donald Trump has threatened to impose 50% tariffs on EU imports if negotiations fail. Since mid-March, Washington has implemented a new policy that calls into question its trade relations with partners across the globe. The US currently imposes tariffs of 50% on EU steel and aluminium, 25% on cars, and 10% on all EU imports. After weeks of fruitless discussions, negotiations between the European Commission — which holds the mandate to negotiate on behalf of the 27 member states in trade matters — and the Trump administration began in mid-June, but their outcome remains in doubt. The Commission initially proposed a zero-tariff agreement on industrial products and an offer to purchase strategic goods such as US liquefied natural gas. But it now appears to be coming to terms with a deal that would maintain a baseline 10% tariff on EU imports. Lower tariffs might then be negotiated for strategic sectors such as aircraft, for which transatlantic production lines are interdependent. However, member states are divided over a potential deal with a baseline 10% tariff. Germany and Italy are reportedly in favour, while countries like Ireland and France remain more sceptical. 'If the US maintain 10% tariffs, there will have to be compensation on goods and products imported from the US,' French president Emmanuel Macron stated on 26 June after an EU summit, adding: 'The levy must be the same — 10% for 10%, or the equivalent of 10%.' A second EU diplomat told Euronews that the agreement could be deliberately short for the two parties to reach further and more detailed agreements in different sectors. "It is not excluded that some sectors could be addressed while others are not," an EU official said. 'Asymmetrical agreement' possible European Commission officials also asked ambassadors to consider several scenarios, including the possibility of an 'asymmetrical agreement' in which the EU would make more concessions than the US, the prospect of no deal, and the option of the EU triggering retaliatory measures. During the same meeting with the member states, the Commission indicated that a second list of countermeasures proposed on 8 May was still under development, according to a third EU diplomat. This list was subject to feedback from industry over several weeks, and member states will still need to adopt it formally. The proposed list targets €95 billion in US products. It would come on top of a first list of retaliation, which covers €21 billion worth of US products and was suspended until July 14 after Donald Trump announced a 90-day truce in the trade dispute. A team of Commission experts is in Washington this week to advance the negotiation. The EU's trade commissioner, Maroš Šefčovič, is set to travel there on Wednesday for a meeting on Thursday with his American counterparts, US Secretary of Commerce Howard William Lutnick and US Trade Representative Jamieson Lee Greer. On Monday, Šefčovič confirmed that the bloc had received 'the first draft of the (US) proposals for the eventual agreement in principle.'