Senate Showdown: Trump’s Tax-and-Spending Bill Faces Tough GOP Resistance

Trump’s Massive Tax-and-Spending Bill Faces Rocky Road in Senate

President Trump’s huge tax-and-spending package—dubbed the One Big Beautiful Bill Act—ran into serious headwinds Saturday night in the Senate. What was supposed to be a smooth sail toward passing this flagship legislation turned into a nail-biting standoff, with a surprising number of Republicans balking and some outright voting against advancing the bill.

The Vote That Couldn’t Get Off the Ground

After about two hours of back-and-forth on the Senate floor, the procedural vote was deadlocked at 47 in favor and 50 against. A few key Republican senators—Rand Paul from Kentucky, Thom Tillis of North Carolina, and Ron Johnson from Wisconsin—broke ranks and sided with Democrats to oppose moving forward.

Vice President J.D. Vance hurried to the Senate chamber, prepared to cast the crucial tie-breaking vote that could push the bill over the top. But the suspense didn’t end there. Senators Rick Scott (Florida), Mike Lee (Utah), and Cynthia Lummis (Wyoming) had yet to cast their votes, and GOP leaders were scrambling to secure enough support.

By around 10:30 p.m. Eastern, Senators Johnson, Lee, and Lummis were deep in talks with Senate Majority Leader John Thune, trying to iron out their concerns. Johnson told reporters, “We’re working hard, in good faith,” signaling ongoing negotiations.

Trump’s Twitter Tirade

Meanwhile, President Trump took to Truth Social, lashing out at Senator Tillis for opposing the bill. Trump warned Tillis that he might face a primary challenger in 2026, calling his vote a “BIG MISTAKE.” This public rebuke showed just how personal and politically charged the battle over this bill had become.

Why the GOP Divide?

The disagreements within the Republican camp aren’t just about political strategy—they’re about core issues like healthcare, energy policy, and the nation’s deficit.

• Medicaid Cuts: Many GOP senators, including Tillis, object to the depth of proposed Medicaid spending cuts.

• Clean Energy: The bill rolls back tax credits for electric vehicles and renewable energy projects faster than previous versions, upsetting both conservative and moderate Republicans.

• Deficit Concerns: Fiscal hawks like Ron Johnson argue that the spending cuts included simply aren’t enough to offset the new deficits this bill would add.

Senator Susan Collins of Maine voted to move the bill forward but said she’s still undecided on the final package, citing concerns about Medicaid cuts, clean-energy rollbacks, and the ballooning deficit. Lisa Murkowski of Alaska eventually joined the "yes" camp after nearly an hour of intense negotiations.

What’s New in This Version?

The bill that the Senate is wrestling with has evolved since its first draft. Here are some highlights:

• SALT Deduction Boost: The state and local tax (SALT) deduction cap has been bumped up to $40,000 starting in 2025, phasing out after $500,000 income, and gradually decreasing back to $10,000 by 2030. This is a big deal for blue-state Republicans and their constituents who want higher caps but still appeases deficit hawks by keeping it temporary.

• Medicaid Provider Taxes: For states that expanded Medicaid under the Affordable Care Act, the provider tax rate (charged to hospitals) will drop from 6% to 3.5% starting in 2028, a year later than the previous plan. States that didn’t expand Medicaid will see those taxes frozen at current levels.

• Clean-Energy Rollbacks: The bill cuts off tax credits for electric vehicles, solar, and wind projects sooner than earlier Senate versions. For instance, wind and solar must be in service by the end of 2027 to qualify for credits. Hydrogen projects get a bit more breathing room, thanks to Sen. Shelley Moore Capito (R., West Virginia).

• New Excise Taxes: The legislation also introduces a tax on renewable projects using certain foreign components, reflecting Republican concerns about supply chain and national security.

• Private-School Vouchers: A new tax credit for private-school vouchers is retained, overcoming earlier procedural snags.

• Endowment Tax Changes: The controversial tax on colleges’ investment income now exempts schools with fewer than 3,000 students, a nod to small colleges that pushed for relief.

Alaska’s Special Perks

Senators Murkowski and Dan Sullivan (R., Alaska) managed to secure some sweeteners for their state:

• A more generous tax deduction for Alaska Native whaling captains.

• Better federal Medicaid matching rates that account for Alaska’s higher cost of living.

• Room to reduce cuts in federal food and nutrition programs.

Sullivan called these changes a “home run” for Alaska.

Big Players Speak Out

Elon Musk, Tesla’s CEO and former Trump adviser, blasted the bill on X (formerly Twitter), calling it “insane and destructive.” Musk argued that the legislation hands out “handouts to industries of the past while severely damaging industries of the future,” a clear jab at the clean-energy rollbacks.

Land Sales Controversy

Senator Mike Lee announced he would drop a contentious provision that would sell some public lands, citing the inability to place enough restrictions on buyers. Other Republicans were also pushing back, suggesting they had the votes to kill this land sale plan outright.

The Budgetary Tug of War

At its core, the bill is still a mixed bag:

• It extends permanent tax cuts and introduces new ones.

• It includes border and military spending increases.

• It features cuts to Medicaid and nutrition assistance programs—key parts of Trump’s agenda.

• The bill is projected to increase budget deficits by roughly $2.4 trillion over the next decade (possibly more once all Senate changes are counted), according to the Committee for a Responsible Federal Budget.

Senator Rand Paul opposes the bill mainly because it raises the debt ceiling. Senator Johnson isn’t convinced the spending cuts are sufficient to curb the deficit.

Meanwhile, Senator Josh Hawley of Missouri highlighted that while Medicaid funding for his state would increase in the short term, he plans to fight in future legislation to block the delayed Medicaid cuts.

What Happens Next?

If the Senate manages to push this bill forward, it doesn’t mean it’s in the bag yet. The House passed a different version last month, and several House Republicans remain skeptical about some Senate provisions, especially deeper Medicaid cuts.

Representative David Valadao of California publicly opposed the Senate’s Medicaid reductions on social media, signaling an uphill battle ahead in the lower chamber.

Quick Recap of Key Points:

• SALT Cap: Raised temporarily to $40,000, then phased back down.

• Medicaid: Provider taxes reduced but on a delayed schedule; state-specific adjustments, including Alaska’s benefits.

• Clean Energy: Tax credits for EVs and renewables end sooner; hydrogen and coal projects get some concessions.

• Taxes: New excise taxes on foreign components in renewable energy.

• Education: Private school voucher credits intact; small colleges spared endowment tax.

• Public Lands: Sale provision dropped amid GOP opposition.

• Deficits: Bill projected to add trillions to the deficit despite some spending cuts.

• Political Drama: Trump publicly shames dissenters; Elon Musk calls it a disaster.

The Countdown to July 4

Senate Majority Leader John Thune is pushing hard to get the bill through the Senate so it can head back to the House for a final vote—and onto Trump’s desk—all before the self-imposed July 4 deadline. But with this level of division, that timeline looks ambitious.