Senate Approves Trump's Controversial "One Big Beautiful Bill Act"

In a historic and contentious session on July 1, 2025, the U.S. Senate narrowly approved the "One Big Beautiful Bill Act" (OBBBA), a sweeping tax and spending reform championed by President Donald Trump. The 51-50 vote was decided by Vice President J.D. Vance, who cast the tie-breaking vote after a prolonged 20-hour debate.

The OBBBA proposes over $3 trillion in tax cuts, including the extension of the 2017 tax rates and the elimination of taxes on tips and overtime pay. To offset these cuts, the bill includes $1.2 trillion in spending reductions, primarily targeting Medicaid and food assistance programs through stricter eligibility requirements. Additionally, it allocates $350 billion for border and national security enhancements.

The Congressional Budget Office (CBO) projects that the bill will increase the national deficit by $3.3 trillion over the next decade. Furthermore, the CBO estimates that nearly 12 million more Americans will become uninsured by 2034 due to the proposed Medicaid cuts and changes to the Affordable Care Act marketplaces.

The bill now returns to the House of Representatives for further consideration. Several House Republicans have expressed concerns over the Senate-amended version, specifically citing deeper Medicaid cuts and the projected increase in the deficit. These issues may hinder unified Republican support, particularly among hard-line conservatives and at-risk moderates, potentially jeopardizing the legislation’s final approval.

President Trump praised the Senate's passage of the bill, describing it as a "big, beautiful bill" that offers "something for everyone." However, critics argue that the bill disproportionately benefits high-income earners and could exacerbate economic inequality. The American Hospital Association has expressed concern that the bill would significantly reduce the availability of coverage in the health insurance marketplaces, leading to millions of people losing their coverage and becoming uninsured.

The passage of the OBBBA reflects a significant shift in fiscal policy priorities and underscores the deep partisan divisions in Congress. As the bill moves to the House, its future remains uncertain, with potential challenges and amendments likely to arise.