Senate Republicans race to pass Trump-backed ‘Big Beautiful Bill’ ahead of July 4 deadline

Senate Republicans are putting all the efforts to pass a key budget bill central to President Donald Trump’s second-term agenda to clear a major hurdle before the self-imposed July 4 deadline.

Party leaders are pressing for an initial vote on the legislation, dubbed as the “Big Beautiful Bill” by Saturday afternoon, after releasing the latest 940-page version just past midnight.

The bill, which builds on a $3.8 trillion extension of Trump-era tax cuts, narrowly cleared the House of Representatives two weeks ago. However, Senate Republicans remain divided, particularly over how deeply to slash welfare programmes to help offset the bill’s steep cost.

The legislation is expected to trigger an intense debate over the weekend as leaders scramble to unify the party and move forward with one of the most significant economic proposals of Trump’s presidency.

The legislation follows a version passed by the House of Representatives last month, which nonpartisan analysts estimated would add roughly $3 trillion to the national debt, now at $36.2 trillion.

Despite those concerns, the White House has argued the bill would ultimately reduce the annual deficit by $1.4 trillion.

“By passing this bill now, we will make our nation more prosperous and secure,” Senate Budget Committee Chair Lindsey Graham said in a statement.

The bill is likely to face a flurry of Democratic amendments during the weekend session, though these are not expected to pass in the 53-47 Republican-controlled Senate.

Intra-party disagreement remains a challenge for Republicans, especially around proposed cuts to Medicaid. Senators from states with large rural populations had objected to earlier provisions that would reduce state tax revenue for Medicaid providers. The latest draft delays those reductions and includes a $25 billion support package for rural Medicaid providers between 2028 and 2032.

The legislation also proposes raising the cap on federal deductions for state and local taxes (SALT) to $40,000 with a 1% annual inflation adjustment through 2029, after which the cap would revert to $10,000. The cap would begin to phase down for individuals earning over $500,000 a year.

This provision is key for House Republicans from high-tax states like New York, New Jersey, and California, whose support is critical to maintaining the party’s narrow majority.

Senate Republicans are employing a legislative maneuver known as budget reconciliation to bypass the usual 60-vote threshold needed to advance most legislation, allowing the bill to proceed with a simple majority in the 100-member chamber.

What’s in the latest version of Trump’s big bill

Tax cuts are the priority

Republicans say the bill is crucial because without it, there would be a massive tax increase, totalling some $3.8 trillion, after December when tax breaks from Trump’s first term expire.

Those existing tax rates and brackets would become permanent under the bill. It temporarily would add new ones that Trump campaigned on: no taxes on tips, overtime pay or some automotive loans, along with a bigger $6,000 deduction in the Senate draft for older adults who earn no more than $75,000 a year.

It would boost the $2,000 child tax credit to $2,200 under the Senate proposal, or $2,500 in the House’s version. Families at lower income levels would not see the full amount, if any.

A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years. It’s a provision important to New York and other high tax states, though the House wanted it to last for 10 years.

There are scores of business-related tax cuts.

The wealthiest households would see a $12,000 increase from the legislation, which would cost the poorest people $1,600 a year, according to the nonpartisan Congressional Budget Office analysis of the House’s version.

Middle-income taxpayers would see a tax break of $500 to $1,500, the CBO said.

Money for deportations, a border wall and the Golden Dome

The bill would provide some $350 billion for Trump’s border and national security agenda, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds, as he aims to full his promise of the largest mass deportation operation in U.S. history.

Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 signing bonuses and a surge of Border Patrol officers, as well. The goal is to deport some 1 million people per year.

The homeland security secretary would have a new $10 billion fund for grants for states that help with federal immigration enforcement and deportation actions. The attorney general would have $3.5 billion for a similar fund, known as Bridging Immigration-related Deficits Experienced Nationwide, or BIDEN, referring to former Democratic President Joe Biden.

To help pay for it all, immigrants would face various new fees, including when seeking asylum protections.

For the Pentagon, the bill would provide billions for ship building, munitions systems, and