Senate Passes Major Legislation, Heads to House for Approval
On Tuesday, Senate Republicans managed to push through a significant bill following an extensive 27-hour amendment session, sending it on to the House for final approval.
The vote was tight—51-50—breaking the tie thanks to Vice President JD Vance. If enough representatives rally behind it, the bill could land on President Trump’s desk by the July 4 deadline.
Three Republicans—Senators Susan Collins from Maine, Rand Paul from Kentucky, and Tom Tillis from North Carolina—joined all 47 Democrats in voting against the bill.
The legislation, dubbed the Megaville, spans around 940 pages and continues the majority of Trump’s tax cuts from 2017. It includes proposals for tax reduction and overtime salary adjustments, while also ramping up spending on defense, border security, and energy exploration, at the expense of rights funding.
This bundle has been a challenging endeavor, facing critiques from various factions within the Republican Party.
After a month of discussions, significant alterations were made to the House’s original version, such as extending business tax cuts, cutting Medicaid further, increasing the debt limit by $5 trillion, and removing state restrictions on artificial intelligence.
Fiscal conservatives like Ron Johnson from Wisconsin expressed concerns about the bill’s potential impact on the deficit while simultaneously threatening to obstruct its passage.
Ultimately, leadership worked to address Johnson’s worries, opting for deeper Medicaid cuts than what the House had originally proposed.
Johnson remarked on Monday morning, “I’m sure they’re committed to returning to reasonable pre-pandemic spending. I’m heavily involved in making that happen.”
Moderate Republicans also voiced anxiety over proposed changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
One senator mentioned on NBC News that cuts to healthcare for workers and the needy were a significant concern for businesses and other entities. Still, the bill gained support from moderates, allowing GOP leaders to move forward.
Another sticking point was a 10-year halt on state regulations regarding artificial intelligence, which caused friction among House Republicans, particularly from far-right members like Marjorie Taylor Greene. After some back-and-forth, the Senate ultimately decided to eliminate the AI regulation provisions.
Additionally, GOP lawmakers from blue states raised alarms about the limits on state and local tax (SALT) deductions. Senate Republicans adjusted the existing $10,000 cap to $40,000 for taxpayers earning below $500,000 per year, a concession that will phase out over five years.
There was also notable concern from the Freedom Caucus, which discovered the rising costs associated with the bill. Representative Keith Self from Texas called the amendments a “financial crime.”
The Senate’s modifications also aimed to ensure that major business tax credits remain permanent, rather than expiring in five years as set in the House version.
According to the Congressional Budget Office, the Senate’s version of the Megaville bill is projected to increase the deficit by $3.3 trillion over the next decade, a figure that could rise to nearly $3.9 trillion when accounting for interest on the debt.
White House officials reassured fiscal conservatives that there would be more spending cuts in the fall and that economic growth and tariff revenues could help mitigate the deficit.
With a sense of urgency, Republicans, including House Speaker Mike Johnson, are eager to present the bill to Trump, as they believe failing to act could jeopardize their standing since the 2017 Tax Cuts and Jobs Act.
The Senate’s approved version also lifts the debt cap by $5 trillion, up from the House’s earlier $4 trillion proposal.
The next step is in the hands of the House GOP. If any changes are made, both chambers will need to establish a conference committee to reconcile discrepancies and vote on a final version of the law again.
