Republican senators passed the comprehensive tax and spending bill proposed by Trump on Tuesday by the narrowest of margins. Dubbed the 'economic nuclear bomb,' this proposal will significantly cut taxes, reduce the social safety net, increase military and immigration enforcement spending, and lead to a $3.3 trillion surge in national debt.

The bill has now been sent to the House for final voting, but some Republican lawmakers have publicly opposed the Senate version's provisions. Trump hopes to sign it into law before Independence Day on July 4, and House Speaker Mike Johnson stated that he will strive to pass it on time.

The core provisions of the bill:

This bill exposes the Republican disagreement over the $36.2 trillion national debt while raising the federal debt ceiling by $5 trillion. Congress must pass the proposal within months, or it will face the risk of catastrophic debt default.

Narrow escape

The Senate passed the bill with a vote of 51-50, with Vice President Vance casting the deciding vote. Three Republicans—Tom Tillis from North Carolina, Susan Collins from Maine, and Rand Paul from Kentucky—defected and voted against it along with all 47 Democratic senators.

During the all-night debate, Republicans fiercely argued over the cost of the bill and its impact on the healthcare system. The final version included two provisions specifically added to secure the support of Alaska Senator Lisa Murkowski: additional food aid funding for states like Alaska and $50 billion allocated to help rural hospitals cope with Medicaid cuts.

Murkowski stated in a statement that this was 'the most difficult decision of my political career.' Although she still had reservations, she ultimately voted in favor. She said: 'This is a disastrous process—an insane sprint for a false deadline that has pushed the limits of the Senate's system. The bill needs further refinement across chambers, and it is too early to submit it to the President.'

House life and death battle

In the House, where Republicans hold a narrow 220-212 advantage, the vote is expected to be exceptionally tight. White House officials revealed that Trump will 'deeply engage' in lobbying efforts, claiming on Tuesday in Florida: 'This is a perfect bill, everyone will benefit, and I believe the House will pass it smoothly.'

But underlying realities are turbulent: the initial version of the House bill barely passed with a two-vote margin in May, while the Congressional Budget Office (CBO) estimates that the Senate version adds $800 billion more in debt than the House version. Conservative groups like the Freedom Caucus criticized excessive spending, while moderates worried that Medicaid cuts would harm constituents. Lawmakers from high-tax states like New York and New Jersey demanded increased state tax deductions. Billionaire Elon Musk rarely broke ranks, condemning the bill as wasteful and vowing to support challengers to incumbent Republican lawmakers in the midterm elections. Democratic leader Hakeem Jeffries denounced the bill as 'the largest heist in American healthcare history, robbing hungry children of their food.'

Who benefits? Who pays?

Data from the Tax Foundation shows that the biggest beneficiaries of the Senate version of the bill are the top 1% of earners making over $663,000 in 2025. The CBO points out that its tax cuts will most benefit high-income groups.

Independent analyses show that tightening eligibility for food and medical care will substantially reduce income for the poor, with an estimated 12 million people losing healthcare coverage. Nonpartisan agencies point out that the surge in debt is essentially a 'transfer of wealth from younger generations to older ones.' Senate Democratic leader Chuck Schumer criticized: 'This vote brings shame to the Senate; the bill will take healthcare away from millions of Americans and leave hungry children without food.' Republicans countered that the CBO's estimation methods are outdated, claiming that Medicaid cuts are only aimed at eliminating 'waste, fraud, and abuse' in the system. Majority leader John Thune defended that 'the bill will provide permanent tax cuts for hardworking Americans, stimulate economic growth, and create more jobs.'