The Senate of the United States approved on Tuesday (1st) the fiscal package prepared by President Donald Trump, in a session marked by intense debates and the need for the tiebreaker of Vice President JD Vance.
The proposal, considered a central part of the Trump government’s economic agenda for the sequence of this second term, expands tax cuts, reinforces the budget for defense and deportations, and provides profound changes in social programs such as Medicaid and Food Assistance. Now, the text returns to the House of Representatives for a new vote, due to the changes that were made by the senators.
The project, nicknamed Trump as a “great and beautiful bill”, was approved after a 50-50 draw in the plenary, being made possible by the decisive vote of the vice president, as determined by the American Constitution. Despite the Senate Republican majority, three party senators positioned themselves against the text, highlighting the internal divisions about the economic and social impact of the proposal.
Among the main points of the tax package is the extent of tax cuts implemented in Trump’s first term, including exemption for tips, overtime and retirement. The text also allocates significant resources for the construction of new sections of the Wall on the Mexico border, expansion of the staff of immigration agents and financing large -scale deportation operations. According to the Senate, the budget for these actions exceed $ 100 billion by 2029.
On the other hand, the proposal foresees deep cuts on social programs. According to Congress Budget Office (CBO) analysis, changes can result in loss of health coverage to up to 11.8 million people by 2034, as well as reducing the benefits of SNAP, a program that assists low -income families in the purchase of food. The CBO also estimates that the package will add about $ 3.3 trillion to the public deficit over the next ten years.
The approved package also provides for the increase in US debt ceiling by $ 5 trillion, authorizing the federal government to contract new loans to finance its expenses and avoid the risk of default. Treasury Secretary Scott Bessent warned that the country would reach the indebted debt limit as early as August, making the ceiling rise an urgent measure to maintain government operations.
President Trump defended the project as a response to the main demands of Americans.
“It’s a big bill … and I think it will advance very well in the House,” he said. Trump also pointed out that the text “has something for everyone” and promised to celebrate the legislature with his team after the return of the vote.
The “great and beautiful bill” has been the target of criticism from republicans who are not from the base magician and businessman Elon Musk, who recently joined the Trump government.
Despite the criticism, the Chamber’s Republican leadership said it will analyze and vote the project later this week. In a statement, the mayor, Mike Johnson, and other party leaders pointed out: “This project is President Trump’s agenda, and we are making it law.” The expectation of the government is to approve the definitive text until the holiday of July 4.
