Senate Passes Trump's Sweeping Domestic Policy Bill

Tone & Political Bias: Strongly Right-Leaning

Why: The bill focuses on tax cuts, military spending, and immigration enforcement, all key elements of the Republican agenda.

Key Takeaways

• The Republican-controlled Senate narrowly passed a sweeping domestic policy package on Tuesday, edging it closer to President Donald Trump's desk. The vote was 51-50, with Vice President JD Vance casting the deciding vote.

• The legislation includes major tax cuts, new military funding, and measures aimed at addressing immigration and deportation. However, it also proposes controversial cuts to Medicaid and clean energy funding.

• The bill will now return to the House, where it faces opposition, particularly from the hard-right House Freedom Caucus.

  
  

Vote Details

The Senate passed the bill after more than 24 hours of debate in an overnight "vote-a-rama" session, during which over 45 amendments were voted on. The final vote came after intense negotiation, with Republicans using a rare tactic known as the "current policy baseline" to obscure the cost of extending the 2017 tax cuts. This tactic has drawn criticism from some Democrats, who warn it could weaken the Senate’s 60-vote threshold and have long-term consequences.

While all 47 Democrats opposed the bill, Republican Senators Rand Paul, Thom Tillis, and Susan Collins also voted against it. The final bill includes an extension of Trump’s 2017 tax cuts and provisions to temporarily eliminate taxes on tips and overtime pay.

It also calls for increased military spending and funding for Trump’s immigration enforcement policies. The bill will be financed in part by cuts to Medicaid, the food-aid program SNAP, and clean energy programs. Additionally, it includes a $5 trillion increase in the debt ceiling.

Significant Amendments and Objections

One of the more notable amendments included a proposal by Senator Ted Cruz to establish a 10-year moratorium on state and local artificial intelligence regulations. This amendment was overwhelmingly rejected, with a vote of 99-1.

Democrats used the lengthy session to push amendments aimed at repealing the 2017 tax cuts for the wealthiest Americans, though none of these passed. Senate Minority Leader Chuck Schumer emphasized that while Republicans blocked these amendments, public opinion appeared to align more with the Democratic position.

House of Representatives Challenges Ahead

With the Senate vote behind it, the bill now heads to the House, where Speaker Mike Johnson will have to navigate significant opposition to secure the necessary votes. Republicans can only afford to lose three votes in the House, and the bill has already faced pushback from some GOP members.

The House Freedom Caucus, in particular, has criticized the bill for not including sufficient spending cuts. Rep. Nick LaLota opposed the changes to the state and local tax (SALT) deduction cap, while Rep. David Valadao, representing a swing district, expressed concerns about the bill’s proposed cuts to Medicaid funding.

Possible Consequences of the Bill

The Congressional Budget Office has projected that the bill would increase the national debt by $3.3 trillion over the next decade. It would also reduce revenues by $4.5 trillion and cut spending by $1.2 trillion. Furthermore, the CBO estimates that if the bill becomes law, 11.8 million people could lose their health insurance by 2034.

Republicans have defended the bill, arguing that it will provide necessary tax relief, boost military funding, and support Trump's immigration agenda. However, the inclusion of major spending increases and the cuts to social programs like Medicaid and SNAP could continue to fuel debate as the bill makes its way through the legislative process.