Senate Passes Sweeping Trump-Era Tax And Immigration Bill, Sent To House for Final Approval

The Senate on Tuesday narrowly approved a sweeping tax and immigration bill that Republicans hope will become a defining legislative victory of President Donald Trump’s second term. The legislation now moves to the House for final passage, with GOP leaders racing to meet Trump’s self-imposed July 4 signing deadline.

The measure extends trillions of dollars in tax cuts enacted during Trump’s first term and incorporates key promises from his 2024 campaign, including the elimination of federal income taxes on tips and overtime wages. It also allocates hundreds of billions of dollars for immigration enforcement and defense spending.

Vice President JD Vance cast the tie-breaking vote in the 51–50 decision, capping a grueling 48-hour Senate session marked by intense debate and late-night negotiations.

In a bid to offset the legislation’s enormous cost, the bill slashes approximately $1 trillion from federal health care programs, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP). The nonpartisan Congressional Budget Office estimates nearly 12 million people could lose health coverage if the measure becomes law.

The bill deeply divided Senate Republicans. Senators Rand Paul (R-KY), Thom Tillis (R-NC), and Susan Collins (R-ME) voted against the measure, citing concerns over the deep cuts to social safety net programs.

“There will be a day that conservatives will rue the fact that some of them actually voted for this,” Paul said following the vote.

Despite the divisions, Republican leaders hailed the bill as a win for working-class Americans. The legislation increases the child tax credit and introduces a new bonus deduction for seniors, aiming to phase out taxes on Social Security benefits. It also proposes “baby bonds” — government-seeded savings accounts with $1,000 for every newborn — and allows purchasers of American-made vehicles to deduct up to $10,000 in car loan interest.

Still, the bill’s path to final approval remains uncertain. Several House Republicans have expressed reservations about Senate revisions, threatening delays as Trump pushes for swift enactment.

If passed by the House and signed into law, the bill would represent a major rollback of Biden-era policies and a dramatic reshaping of the federal government’s role in economic and social welfare.