TEMPO.CO, Jakarta - Following intense lobbying from the Republican leadership, President Donald Trump's proposed $3.3 trillion tax cut and spending reduction bill was finally approved by the Senate on Tuesday, July 1, 2025.
Known as the One Big Beautiful Bill, the bill passed by a narrow margin of 51-50. Three Republican senators, namely Susan Collins (Maine), Thom Tillis (North Carolina), and Rand Paul (Kentucky), chose to reject the bill.
The tie-breaking vote came from Vice President JD Vance, who cast the additional vote after the deadlock.
A Mix of Tax Cuts, Defense, and Spending Reductions
According to the Economic Times, the bill, which will now move to the House of Representatives for debate, includes a $4.5 trillion tax cut and $1.2 trillion in budget savings.
It allocates funding to several of Trump’s key priorities, including immigration enforcement, border security, tax reductions, and expanded military spending.
CBS News reported that the bill incorporates core elements of Trump's second-term agenda. At its center is the extension of tax cuts introduced under the 2017 Tax Cuts and Jobs Act, which are set to expire by the end of 2025.
If enacted, the bill would make most of those tax cuts permanent while also boosting funding for defense, border infrastructure, and energy projects.
Pushback Over Social Program Cuts
The bill has drawn sharp criticism from Democrats and a number of Republicans who object to its significant cuts to social programs, including healthcare services and food assistance for low-income Americans.
As reported by Al Jazeera, beyond the $4.5 trillion in tax cuts, critics argue that the bill could worsen income inequality and harm vulnerable communities for the sake of short-term fiscal savings.
Its approval followed a tense and extended weekend of negotiations on Capitol Hill.
For nearly two days, the Senate debated and voted on a series of amendments from both parties before finally reaching an agreement.
While the bill has cleared the Senate, it still faces challenges in the House of Representatives, where Democratic opposition is expected to mount strong resistance to its provisions.
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