Senate passes Trump-backed tax and spending bill cutting medicaid and food assistance

The Republican-controlled US Senate on Tuesday (July 1) narrowly approved a sweeping tax-cut and spending package championed by President Donald Trump, marking a major legislative victory for the administration ahead of the July 4 holiday.

The measure, formally known as the “One Big Beautiful Bill Act,” passed by a razor-thin margin after Vice President JD Vance cast the tie-breaking vote in the evenly divided chamber.

The legislation enacts trillions of dollars in permanent tax cuts, including extending the 2017 tax reductions and adding new breaks such as eliminating federal taxes on tips. It also imposes significant cuts to social safety net programs, including Medicaid health coverage for low-income Americans and food assistance programs relied upon by millions of families and people with disabilities.

Republicans argued the bill will boost economic growth and simplify the tax code. Critics, however, warned that it will sharply increase the federal deficit—by an estimated $3.3 trillion over the next decade—and leave vulnerable Americans without essential benefits.

Passage in the Senate came after an intense overnight voting marathon, as GOP leaders scrambled to secure support from holdout Republicans concerned over the scale of the Medicaid reductions and the impact on rural hospitals.

The bill now returns to the House of Representatives for a final vote later this week before it can go to Trump’s desk for signature.

This is a developing story. Please check back for updates