Senate Works Over the Weekend to Pass Major Tax-and-Spending Legislation

Senate Republicans are laboring through the weekend to advance a comprehensive tax and spending bill aimed at implementing significant fiscal policies. Negotiations on specific provisions are ongoing, with some senators still hesitant to support the package.

The bill, which is expected to pass using the budget reconciliation process—requiring only a simple majority—includes several key measures. It extends certain parts of the 2017 Tax Cuts and Jobs Act, removes taxes on tips and overtime pay, allocates additional funds for border security, and repeals green-energy tax credits introduced during the previous administration.

To accommodate all proposed changes, the legislation will necessitate raising the debt ceiling by approximately $5 trillion. Supporters aim to vote on the bill as early as Saturday at noon to start the debate process.

With a narrow 53-47 majority, Republicans can only afford to lose three votes, with Vice President JD Vance serving as the tiebreaker. The final version of the legislation has yet to be released, and it must be ratified by the House again after Senate approval.

President Trump expressed hope that the bill would reach his desk by July 4, emphasizing a desire to wrap up negotiations by then. He stated, “The House must be ready to send it to my desk before July 4—We can get it done,” reflecting urgency in the legislative process.

Obstacles and Criticism

The bill faced a setback when the Senate’s parliamentarian invalidated provisions targeting non-citizens’ healthcare coverage, citing the Byrd Rule, which limits reconciliation bills to spending and revenue matters. This move was met with strong criticism from some GOP senators, notably Tommy Tuberville, who called for the parliamentarian’s firing, accusing her of obstruction. She was appointed in 2012 by Democrats.

Meanwhile, some moderates and fiscal conservatives, including Senators Rand Paul and Ron Johnson, continue to voice concerns over the bill’s projected impact on the national deficit, estimating it could add up to $3 trillion over ten years.

Other Key Developments

The legislation also proposes increasing the state and local tax (SALT) deduction from $10,000 to $40,000 over five years, an item that had drawn some opposition in the Senate until recent discussions. House Speaker Mike Johnson indicated progress on resolving the SALT issue with Treasury officials and SALT Republicans, signaling that negotiations may soon conclude.