Senate greenlights controversial Trump-era legislation, House decision looms

Posted on July 2, 2025   |  

The U.S. Senate narrowly passed a major tax and immigration bill championed by President Trump, moving it to the House for final approval.

Republican leaders are aiming to pass the bill before July 4, meeting Trump's self-imposed deadline.

The bill extends Trump-era tax cuts and introduces new tax exemptions, including no federal income tax on tips and overtime pay.

It allocates hundreds of billions for immigration enforcement and defense, aligning with Trump’s 2024 campaign promises.

To fund the bill, it cuts about $1 trillion from federal healthcare programs like Medicaid and Supplemental Nutrition Assistance Program (SNAP), potentially leaving 12 million people uninsured.

The proposal divided Senate Republicans, though party leaders celebrated it as a benefit for the working class.

New provisions include a child tax credit increase, a senior bonus deduction, and plans to phase out Social Security taxes.

The bill also introduces "baby bonds" — $1,000 government-funded savings accounts for each newborn — and allows up to $10,000 in car loan interest deductions for American-made vehicles.