Senate overwhelmingly approves Trump's tax and spending bill

The vote took place on Tuesday, July 1, with the bill passing 51–50. The decisive vote came from Vice President J.D. Vance. Republican Senators Susan Collins, Rand Paul, and Thom Tillis voted against the bill, siding with Democrats.

The bill is expected to become the Republican Party’s flagship legislative achievement ahead of the 2026 midterm elections.

Republicans currently hold a fragile majority in the House of Representatives, while Senator Tillis’ recent decision not to seek reelection has opened a window for Democrats to potentially retake the Senate.

Long negotiations and last-minute concessions

Trump’s bill includes an extension of the tax cuts enacted in 2017 and features several key campaign initiatives, such as eliminating taxes on tips, reforming social welfare programs, increasing defense and border security spending, and raising the federal debt ceiling by $5 trillion.

"Today was a historic day ... and we’re very excited to be a part of something that is going to be make America stronger, safer and more prosperous," Senate Majority Leader John Thune told reporters after the vote.

As Politico notes, the Senate’s final decision capped off months of chaotic negotiations. Thune, GOP whip John Barrasso, and other party leaders spent the night before the vote lobbying undecided senators.

Senator Lisa Murkowski remained uncertain until the last moment due to concerns about the bill’s impact on healthcare and Alaska’s economy. To secure her support, a tax break for whaling ship captains was added to the final draft. Still, some provisions were rejected by the Senate’s parliamentary adviser, complicating talks.

As Republicans scrambled to secure Murkowski’s vote, Thune and key committee chairs met with Senator Rand Paul, one of the bill’s fiercest opponents.

Tough road ahead in House

The bill now faces an even greater challenge in the House of Representatives, where a vote is expected Wednesday. Trump’s GOP allies risk missing their self-imposed July 4 deadline.

According to Politico, many of the provisions already challenged in the Senate are likely to face even stronger opposition in the House. Senator Susan Collins had warned for days she wouldn’t support the bill unless provisions limiting state Medicaid funding were softened and rural hospital funding was increased.

Her proposed amendment failed a procedural vote, prompting her to accuse Democrats of hypocrisy for opposing measures that could have mitigated the bill’s harm. After the vote, she said she couldn’t support the Medicaid changes or other parts of the bill.

Déjà vu of Obamacare?

Senator Thom Tillis compared the political fallout of the proposed Medicaid changes to the passage of the Affordable Care Act (Obamacare) in 2010, which led to devastating election losses for Democrats.

After facing criticism from Trump and seeing no effort from Senate leadership to ease his concerns, Tillis announced on Sunday he would not seek reelection, a clear signal he would not change his stance.

Senator Rand Paul was seen as a likely "no" vote due to his strong opposition to raising the debt ceiling. He was one of four fiscal hawks under close watch by party leadership.

Ultimately, Senators Ron Johnson, Mike Lee, and Rick Scott voted in favor of the bill after negotiations that included meetings with Trump, Vice President Vance, and GOP Senate leaders. As part of a deal, Thune agreed to back Scott’s proposal to cap Medicaid spending starting in 2031. In return, Johnson, Lee, Scott, and Senator Cynthia Lummis agreed to begin debate on the bill, though the amendment was never brought to a vote due to lack of support.

Democrats seize political momentum

Senate Democrats plan to use Republicans’ internal divisions as ammunition in the next campaign cycle. Minority Leader Chuck Schumer said, "We’re going to be in their states in every way."

"This bill is so irredeemable that one Republican literally chose to retire rather than vote ‘yes’ and decimate his own state. But there were many, many senators who felt like he did. They knew how bad it was for their states, but they didn’t have the courage, they didn’t have the backbone, to vote with the people of their states," he told reporters after the vote.

Trump's controversial tax bill draws fire from Elon Musk

One of the most vocal critics of Trump’s tax and spending proposal is Elon Musk, CEO of SpaceX and Tesla. Musk called the bill a form of "debt slavery" and warned it could accelerate the growth of US national debt.

In early June, Trump and Musk traded harsh criticism, though tensions later appeared to ease. However, on July 1, Musk once again slammed the bill and announced he would consider forming his own political party if it passes.

In response, President Trump threatened to deport Musk "back to South Africa."