Senate Advances Trump’s $3 Trillion Tax Bill Amid Debt Concerns and Political Backlash

U.S. Senate Republicans are moving forward with President Donald Trump’s sweeping tax and spending bill, aiming for a procedural vote following amendments addressing rural hospital funding and state tax deductions. The 940-page legislation, dubbed the One Big Beautiful Bill Act, would extend Trump’s 2017 tax cuts, increase military and border security spending, and raise the cap on state and local tax deductions to $40,000 with inflation adjustments through 2029.

The bill faces fierce opposition from Democrats, who argue it favors the wealthy while cutting essential programs. Senate Majority Leader Chuck Schumer warned it would burden future generations with trillions in debt. The nonpartisan Committee for a Responsible Federal Budget estimates the Senate version could add $4 trillion to the national debt over a decade. The White House, however, claims the bill would reduce the annual deficit by $1.4 trillion.

Republicans, holding a narrow Senate majority (53-47), are using a budget reconciliation process to bypass the 60-vote threshold. Senators Josh Hawley and Susan Collins, previously concerned about rural healthcare, expressed support after Medicaid funding provisions were added. The revised bill includes $25 billion in rural Medicaid aid from 2028 to 2032 and delays cuts to state Medicaid revenues.

Elon Musk criticized the bill on X, calling it “utterly insane,” warning it could destroy U.S. jobs and competitiveness. Despite internal divisions and public outcry, Republican leaders say passing the bill is crucial to economic security. If the Senate approves it, the legislation returns to the House before reaching Trump’s desk.

The bill also includes a debt ceiling hike to prevent a government default, further fueling debate as lawmakers brace for a weekend of intense negotiations and amendment battles.