In a dramatic late-night vote, the U.S. Senate passed President Donald Trump’s sweeping $5 trillion “megabill” — officially named the One Big Beautiful Bill Act — by the narrowest possible margin: 51-50, with Vice President J.D. Vance casting the tie-breaking vote.
The high-stakes legislation is a centerpiece of Trump’s 2025 economic and political agenda, and its passage marks a major — albeit contentious — victory for the GOP. The Senate vote came after weeks of tense negotiations, with Republican leadership pushing hard to meet the self-imposed July 4 deadline set by the Trump administration.
Key Features of the Trump Megabill:
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Tax Cuts Extended: The bill makes permanent significant portions of the 2017 Trump tax reforms, favoring both corporations and high-income earners.
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SALT Deduction Cap Raised: Raises the cap on State and Local Tax (SALT) deductions to $40,000 through 2030.
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Massive Spending Shift: Adds between $150 to $350 billion in new defense and border security spending.
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Social Program Cuts: Slashes billions from Medicaid and food assistance programs, while implementing stricter work requirements.
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Clean Energy Rollbacks: Eliminates several clean-energy tax credits introduced under the Biden administration.
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Debt Ceiling Raised: Increases the national debt limit by $5 trillion to accommodate the spending package.
The vote was a nail-biter. Three GOP senators — Susan Collins (ME), Rand Paul (KY), and Thom Tillis (NC) — broke ranks, citing deep concerns about the bill’s long-term fiscal impact and its cuts to rural health programs. Their defection forced VP Vance to step in, breaking the tie in a moment of high drama.
A Divided Republican Party
Despite passage, the bill has exposed widening rifts within the Republican Party. Fiscal conservatives worry the bill explodes the deficit, while moderates have raised alarms over its impact on working-class Americans. In contrast, Trump allies are celebrating what they call a “transformational economic reset” that prioritizes national defense, border control, and pro-growth policies.
The White House emphasized the importance of meeting the July 4 timeline, branding the bill as essential to “America’s revival” and a critical milestone ahead of the 2026 midterms.
Next Steps in the House
While the bill narrowly passed the Senate, its journey isn’t over. The legislation must now return to the House of Representatives, where pushback is expected from moderate Republicans and some Democrats. Key points of contention include Medicaid cuts and energy provisions that could derail final approval.
