Trump Budget-Tax Bill Squeaks Through Senate, Faces Tight House Test

The U.S. Senate narrowly approved President Donald Trump’s sweeping budget and tax legislation, dubbed the “Big Beautiful Bill,” after a 50–50 split was decided by Vice President J.D. Vance. The 940-page measure bundles a wide range of fiscal priorities, including tax cuts and changes to entitlement programs, and must now return to the House of Representatives for final approval because of amendments added in the upper chamber.

Key provisions would allow temporary deductions of up to $10,000 in auto-loan interest on qualifying U.S.-assembled vehicles, $25,000 for tip income and $12,500 for overtime pay, largely benefiting households earning under $150,000. The bill also imposes Medicaid work requirements beginning at the end of 2026 and shifts a portion of future SNAP costs to states. According to the Congressional Budget Office, the Senate version would raise federal deficits by $3.3 trillion over the next decade when measured against current law, though Republicans argue it trims $508 billion relative to a current-policy baseline.

After a 12-hour session, the House Rules Committee advanced the legislation on a 7–6 vote, setting up a floor debate that could start as early as Wednesday. With only a narrow Republican majority, party leaders face resistance from fiscal hawks concerned about the deficit impact and centrists wary of Medicaid changes. Trump is pushing Congress to send the bill to his desk by July 4, but any House alterations would force another Senate vote, prolonging the process.