Senate Approves Trump’s US$3.3T Bill, House Awaits

• After hours of tense negotiations, the Senate passed a US$3.4 trillion tax and spending bill with Vice President J.D. Vance breaking the tie.

• The bill brings big tax breaks, limits clean energy support, and tightens rules around healthcare and social welfare programs.

  
  

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto 

July 4, 2025 at 16:30 GMT+7

Senate republicans approved a US$3.4 Trillion tax and spending cut package proposed by President Donald Trump with a narrow 51-50 vote, with Vice President J.D. Vance cast the tie-breaking vote. 

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Lawmakers in both the Senate and the House needed to finalize the bill quickly, leading to a strong push to gather enough support before the deadline. The discussion, which went on for over 24 hours, unfolded amid fluctuating support from key Republican senators and was reportedly on the verge of collapse multiple times. 

Still, the bill advanced, with one Southern Republican senator reportedly saying it was proving tough to oppose effectively. The bill now moves to the House, where leadership faces time pressure and internal disagreement ahead of the expected vote.

U.S. House of Representatives Speaker Mike Johnson gestures after signing the U.S. President Donald Trump's sweeping spending and tax bill | Source: Reuters

The “Big, Beautiful Bill” contains a range of key spending with major tax and spending reforms. On the tax side, it gives significant benefits to businesses, including full deductions for equipment and R&D temporarily under the House version and permanently under the Senate version. 

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Individual taxpayers would benefit from the car loan interest deduction starting in 2025, an increased child tax credit (US$2,500 under the House, US$2,200 under the Senate), and enhanced senior deductions. In contrast, the bill significantly rolls back clean energy tax credit. 

The House tends to accelerate the phase-out of clean energy tax credits by 2028 and reclaims unused funds while the Senate erases incentives for electric vehicles and reduces benefits for energy-efficient home improvements. Still, the Senate allows limited credits for new wind and solar projects and maintains long-term support for zero-emission sources like nuclear.

Vance testifies during a Senate Banking Committee hearing on Capitol Hill in Washington | Source: Andrew Harnik via AP Photo

The newly passed “Big Beautiful Bill” introduces major changes to the United States' social welfare system. One of the key provisions is the implementation of stricter work requirements for Medicaid recipients, which raises concerns that low-income individuals who do not meet the new criteria may lose access to healthcare. 

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Additionally, the bill limits the funding flexibility previously granted to state governments, forcing them to adjust their budget allocations more tightly. The bill also tightens food stamp (SNAP) regulations by shifting more financial responsibility onto the states, potentially reducing the reach of this essential assistance. 

Furthermore, the legislation bans gender-affirming care under federal health programs and restricts access to healthcare services for certain groups of immigrants, moves that have drawn criticism from various human rights organizations.

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Source:

CNN

Reuters