President Donald Trump’s budget behemoth is one step closer to being law after passing the Senate on Tuesday in a narrow vote. The One Big Beautiful Bill Act will go to the House of Representatives for a final vote before it is signed into law by the president.
Its advancement has not been easy. The legislation has stoked disputes among Republican lawmakers, who control both chambers of Congress, over social programmes and spending levels.
The Congressional Budget Office estimates the bill would add $3.3tn trillion to federal deficits over the next 10 years and leave millions without health coverage, a forecast that the White House disputes.
The Senate forced Vice-President JD Vance to break the tie to pass the bill, and its chances in the House look equally tenuous. Some of the main items and controversial points in the bill are as follows:
Trump had signed the Tax Cuts and Jobs Act during his first term, reducing corporate taxes and individual taxes in most income brackets. Trump had promoted the law as one that would boost economic growth, but critics have said it has most benefited rich Americans.
Provisions of that law are to expire in December, but the massive budget bill now before lawmakers would make those tax reductions permanent. It also raises standard deductions by $1,000 (£736) for individuals and $2,000 for couples through 2028. Trump promised on the campaign trail to remove taxes from Social Security benefits – monthly checks paid to Americans who have reached retirement age and those with disabilities.
The bill in the House failed to do that, but it did raise the base deduction of as much as $4,000 temporarily for taxpayers 65 and older. The deduction would be effective from 2025 to 28. Senate Republicans voted to extend Social Security tax relief and raise the threshold, which would provide a $6,000 tax break for elderly Americans making up to $75,000 annually.
