Trump’s $3.3 Trillion “One Big Beautiful Bill” Clears Senate in 51-50 Vote

resr 5paisa Capital Ltd

Last Updated: 2nd July 2025 - 02:17 pm

2 min read

In a dramatic late-night session, the U.S. Senate narrowly passed President Donald Trump’s sweeping $3.3 trillion tax and spending package, dubbed the “One Big Beautiful Bill.” The bill passed with a razor-thin 51-50 margin, with Vice President JD Vance casting the tie-breaking vote. The legislation enshrines many of Trump’s top policy priorities, including permanent tax cuts, an immigration crackdown, deep cuts to Medicaid and food aid, and a $5 trillion hike in the U.S. debt ceiling.

Key Highlights of the Bill:

  • 2017 tax cuts made permanent; higher standard deduction for individuals and couples.
  • New tax breaks for seniors, tipped workers, and overtime income.
  • $1.2 trillion cuts to Medicaid and food aid programs.
  • More spending on border security and immigration enforcement.
  • The debt ceiling was raised by $5 trillion, pushing national debt over $36 trillion.
  • Renewable energy projects face new restrictions.

Political Fallout and Next Steps:

The legislation now heads to the House of Representatives, where Republican divisions threaten its final passage. While Trump loyalists hail the bill as a legacy-defining achievement, moderate Republicans and fiscal conservatives express deep reservations over its social program cuts and massive debt addition.

Prominent Republicans like Senator Thom Tillis have openly opposed the bill, citing betrayal of promises to working-class voters. Facing internal party backlash, Tillis announced he won’t seek re-election in 2026. Meanwhile, billionaire Elon Musk has threatened to fund primary challengers against GOP lawmakers backing the bill, citing its impact on the national debt.

The bill has also unified Democratic opposition, with House Leader Hakeem Jeffries labelling it “the largest assault on American healthcare and nutrition in history.” Analysts warn that nearly 12 million Americans could lose health coverage under the proposed Medicaid cuts.
Trump aims to have the bill signed into law by July 4th, but hurdles remain. The House vote is expected to be tight, with opposition from moderates, fiscal hawks, and lawmakers from high-tax states unhappy with provisions affecting state and local tax deductions.

Conclusion

Trump’s “One Big Beautiful Bill” represents one of the most consequential—and divisive—pieces of U.S. legislation in recent memory. While it promises tax relief and a crackdown on immigration, critics argue it risks deepening inequality, ballooning the national debt, and jeopardising healthcare for millions. The outcome now rests with a fractured House of Representatives.

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