Senate Passes Trump’s $4.5T Bill Cutting Medicaid, Extending Tax Breaks
Senate Passes Trump’s $4.5T Bill Cutting Medicaid, Extending Tax Breaks

Senate Passes Trump’s $4.5T Bill Cutting Medicaid, Extending Tax Breaks

News summary

President Donald Trump's "One Big Beautiful Bill Act," a budget reconciliation package extending the 2017 tax cuts, passed the Senate by a narrow 51-50 vote with Vice President J.D. Vance breaking the tie. The legislation includes $4.5 trillion in tax breaks, eliminates taxes on tips and overtime with caps, and increases child tax credits, while funding these cuts with over $1.3 trillion in Medicaid and Supplemental Nutrition Assistance Program reductions, introducing stricter work requirements and eligibility checks. It also allocates billions for border security and defense, including $175 billion for immigration enforcement, and phases out green energy tax credits introduced under President Joe Biden. The bill has divided lawmakers, with Republicans largely supporting it as a fulfillment of Trump's agenda to secure borders, promote energy independence, and provide economic relief, while Democrats oppose it due to the anticipated loss of health coverage for millions and cuts to social programs. State-level officials have expressed concerns about the impact on Medicaid recipients, with estimates of significant coverage losses in states like New York and West Virginia. The bill now returns to the House for final consideration before President Trump is expected to sign it into law by Independence Day.

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