Senate Republicans succeeded in passing President Donald Trump’s “One Big Beautiful Bill Act” after a tiebreaking vote by Vice President JD Vance.
The bill was passed after intense negotiations and a 27-hour marathon of amendment votes on the Senate floor.
The big picture: The final vote saw opposition from GOP Senators Thom Tillis, Rand Paul, and Susan Collins, as well as every Democrat.
- The legislation faced challenges when Alaska Senator Lisa Murkowski expressed concerns over the deep cuts to Medicaid and federal food assistance funding, which she feared would negatively impact her home state. This led to intense negotiations to secure her support.
Driving the news: Efforts to secure Murkowski’s vote were initially derailed by the Senate Parliamentarian, who ruled against certain provisions targeted at Alaska, citing violations of the Byrd Rule, which determines what can be included in a budget reconciliation package and pass with only GOP votes.
- After several reworkings and failed proposals, the rural hospital relief fund was doubled from 25 billion to 50 billion to mitigate potential Medicaid funding shortfalls in Alaska and other rural states. This decision was made in spite of the Senate rejecting an earlier proposal to double the fund and pay for it through a new 39.6% tax bracket for ultrawealthy earners.
- A reworked provision for SNAP funding cuts was agreed upon, phasing in reductions more slowly for states with the highest error rates in delivering benefits, postponing cuts for such states by a year.
What we’re watching: Following the passage in the Senate, the bill faces challenges in the House due to deeper cuts to federal Medicaid spending, an accelerated phaseout of clean-energy tax breaks, and changes to a deal to raise the cap on state and local tax (SALT) deductions.
- At least six House Republicans have expressed intentions to oppose the bill, with concerns about its impact on the national debt and changes to the House-passed legislation.
