"Trump's 'Second-Term Agenda' Hangs in the Balance as Three Republicans Defect from 'Big Beautiful Bill' Vote"

Key Takeaways

The 'Big Beautiful Bill' is crucial for President Trump's second-term agenda but hangs in the balance due to three Republican defections.
The Senate Republicans are divided over how much to cut from welfare programs to cover the cost of Trump's tax breaks in the bill.
The bill needs a simple majority to pass in the Senate, with Republicans holding 53 seats out of 100, plus a tiebreaker from Vice-President JD Vance. Three defections would result in failure.
The latest version of the bill includes an increase in funding for rural hospitals and a raise in the State and Local Taxes (Salt) limit for married couples with incomes up to $500,000, but with a sunset clause after five years.
The bill contains contentious measures, including restrictions and requirements on Medicaid, which Democrats argue will limit access to affordable healthcare for millions of Americans, with the Congressional Budget Office estimating 7.8 million people would become uninsured due to such Medicaid cuts.

The "Big Beautiful Bill," a sprawling tax and spending measure pivotal to President Donald Trump's second-term agenda, hangs in the balance as three Senate Republicans have abandoned their ranks. This development comes ahead of a self-imposed 4th of July deadline.

Senate Majority Leader John Thune has been pushing for a vote on the latest text of the bill this Saturday. The Senate Republicans have been in a frenzy to pass this budget bill, which contains a multitude of provisions from Trump's tax breaks to expansions of federal spending.

However, the rank-and-file Republicans have been divided over how much to cut from welfare programs to cover the cost of extending the $3.8 trillion ($2.8 trillion) in Trump tax breaks. The bill passed the House of Representatives by a single vote last month.

In a memo sent Saturday to Senate offices, the White House endorsed the latest revisions to the bill and called for its passage. The memo warned that failure to approve the budget "would be the ultimate betrayal." But, Thune labeled plans for a Saturday vote as "aspirational."

Senator Ron Johnson of Wisconsin announced on Saturday that he will be voting "no," for he still needed time to read it. "We just got the bill," Johnson said. "I got my first copy at about 01:23 in the morning."

Two other Republican senators are holding out. Thom Tillis of North Carolina raised objections to the legislation on Saturday, a day after Rand Paul of Kentucky said no. The spotlight is now on centrist Republican senators Lisa Murkowski of Alaska and Susan Collins of Maine.

Collins has indicated she may support a vote to advance the bill to the debate stage, but she remains undecided on whether she will vote "yes" to passing it. The bill needs a simple majority to clear the Senate. With Republicans holding 53 seats out of 100, plus a tiebreaker from Vice-President JD Vance, the party can only afford three defections.

The latest version of the bill was designed to appease some backbench Republican holdouts. Other amendments incorporate input from the Senate parliamentarian, an official who reviews bills to ensure they comply with the chamber's procedures.

The bill includes an increase in funding for rural hospitals, after some party moderates argued the original proposal would harm their constituents. Another tweak was made to State and Local Taxes (Salt) - a bone of contention for representatives from high-tax states such as New York.

There is currently a $10,000 cap on how much taxpayers can deduct from the amount they owe in federal taxes. In the new bill, Senate Republicans have raised the Salt limit to $40,000 for married couples with incomes up to $500,000 - in line with what the House of Representatives approved. However, the latest Senate version ends the $40,000 cap after five years, when it would drop back to $10,000.

There are also changes to the Supplemental Nutrition Assistance Program (Snap), which provides food benefits to low-income Americans. Under the latest bill, Alaska and Hawaii would be temporarily exempt from a proposed requirement for some states to start footing the bill for the program, which is currently fully funded by the federal government. The revision comes after Alaska's two Republican senators pushed for an exemption.

The legislation still contains some of its core components, including extending tax cuts passed by Republicans in 2017, as well as the addition of new cuts that Trump campaigned on, such as a tax deduction on Social Security benefits and the elimination of taxes on overtime work and tips.

More contentious measures are also still in place, including restrictions and requirements on Medicaid - a healthcare program used by millions of elderly, disabled, and low-income Americans. Democrats have heavily criticized this piece of the bill, saying it will limit access to affordable healthcare for millions of Americans. The Congressional Budget Office estimates that 7.8 million people would become uninsured due to such Medicaid cuts.

Senator Patty Murray, a Washington state Democrat, took to social media on Saturday to argue the bill contains "the largest healthcare cuts in history."

Democrats have heavily criticized this piece of the bill, saying it will limit access to affordable healthcare for millions of Americans. The Congressional Budget Office estimates that 7.8 million people would become uninsured due to such Medicaid cuts.

Senator Patty Murray, a Washington state Democrat, took to social media on Saturday to argue the bill contains "the largest healthcare cuts in history."

The bill faces an uphill battle, with three Republican defections, and time running out. The question remains whether the remaining Republicans will stand with Trump, or if the "Big Beautiful Bill" will fall short.