Republicans fight it out on Trump’s tax megabill

The Senate faces an all-nighter of debate and amendment votes on the US President’s ‘big beautiful bill’, as the 940-page legislation drives a wedge between the GOP’s two wings.

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The Senate geared up Sunday (early Monday AEST) for an all-night session of debate and amendment votes on the GOP’s “big, beautiful bill,” after Republicans narrowly advanced the measure in a 51-49 vote that set up more push-and-pull before final passage.

The 940-page legislation is driving a wedge between the GOP’s two wings, just as the party is racing to pass the measure early this week. Centrists have raised concerns about cutting benefit programs and straining state budgets, while fiscal conservatives are pushing for even more cuts to rein in federal budget deficits.

Proponents maintain that the opportunity to pass Donald Trump’s core agenda items – and pressure from President Trump on holdouts – would propel the package over the finish line in the Senate, where the GOP has a 53-47 majority.

“It’s a big, beautiful bill if you believe in cutting people’s taxes, securing the border, having a strong military and controlling government spending,” Sen. Lindsey Graham (R, SC) said on the Senate floor.

“The bottom line is, we’re about to make history,” he said.

Broadly, the megabill would extend tax cuts and boost defence and border funding while cutting spending on Medicaid and food aid. It would add nearly $US 3.3 trillion ($5 trillion) to deficits compared with current law and letting tax cuts expire as scheduled, according to the Congressional Budget Office.

If the Senate manages to pass the bill, getting the measure to Mr Trump by Republicans’ self-imposed July 4 deadline would require another vote from the House. That might be challenging in that chamber as well, where Republicans have a narrow 220-212 majority and their initial version of the bill passed by just one vote last month.

Democrats are united against the measure, saying it cuts the social safety net to fund tax relief for the wealthy.

Moderate House GOP lawmakers such as Rep. David Valadao (R, Calif) are also warning about Medicaid cuts. Others are expected to object because the bill increases deficits by nearly $US500 billion more than House Republicans previously said they could accept.

Strains in the Senate

The initial procedural vote on Saturday showed the strains in the Senate. The vote was kept open for more than three hours as several Republican senators negotiated with party leaders before supporting the step forward. Senators Rand Paul (R, Ky) and Thom Tillis (R, NC) bucked their party to vote against the motion to proceed.

Senate Majority Leader John Thune (R-SD) speaks to reporters after walking off the Senate floor at the US Capitol Hill as Senate Republicans worked overnight, forced by Democrats to read a new version of the ‘big beautiful bill’. Picture: Getty Images via AFP

Senator Tillis said he wouldn’t run for re-election in 2026, after Mr Trump criticised him in several Truth Social posts and said he would encourage potential primary challengers.

On the Senate floor on Sunday, Senator Paul criticised a proposal in the bill to raise the debt limit by $US5 trillion. “That is an admission that they know they aren’t controlling the deficit,” he said. “They know that the ensuing years will add trillions more.”

Senator Lisa Murkowski of Alaska, who has called for protecting clean-energy tax credits, spoke on the Senate floor with Finance Committee Chairman Mike Crapo (R, Idaho) before voting to advance the measure.

Vice President JD Vance huddled in the Capitol Saturday with a bloc of fiscal conservatives seeking spending cuts. Senators Rick Scott of Florida, Mike Lee of Utah and Cynthia Lummis of Wyoming ultimately voted yes. Sen. Ron Johnson of Wisconsin flipped his no vote to a yes after speaking with Mr Vance.

Senator Johnson told reporters afterward that Mr Trump and Senate GOP leadership would advocate for Senator Scott’s amendment to reduce the Federal Medical Assistance Percentage for new enrolment in Medicaid expansion states. But if they push too far, they risk losing support from moderates who have expressed concern over cuts to Medicaid.

Another wrinkle surfaced later: The Senate parliamentarian advised lawmakers that they might need to strip two provisions that would have enhanced Alaska and Hawaii’s Medicaid budgets, after finding them to be in violation of reconciliation rules. The Senate bill included some carve-outs for Alaska, which could have sweetened the deal for moderate holdout Murkowski.

Trump makes calls

Mr Trump golfed with senators Saturday morning and made phone calls about the bill later that day, according to a person familiar with the matter. He took to Truth Social to bash senators Tillis and Paul for voting with Democrats against the procedural step and said he would meet with potential primary challengers to Senator Tillis.

Mr Trump urged fiscal hawks not to “go too crazy.”

“For all cost cutting Republicans, of which I am one, REMEMBER, you still have to get re-elected,” he wrote on Truth Social.

Instead of the regular CBO score, senators are instead assuming that all the expiring tax cuts are extended at no cost. That lets them claim that the bill doesn’t increase deficits beyond 2034, an assertion that is essential to making the tax cuts permanent under Senate rules.

Democrats attempted to get the Senate parliamentarian’s advice on whether that manoeuvre complies with the law that limits what bills can use the fast-track budget-reconciliation process. Republicans refused to have a bipartisan meeting with the parliamentarian, citing a portion of budget law that lets Senate Budget Committee Chairman Graham determine the numbers. Republicans have said they won’t overrule the parliamentarian; in this case, they aren’t getting her advice.

On Sunday, the Senate floor was held by clerks, who began reading the 940-page bill in its entirety at 11:08pm Saturday at the request of Democrats. The reading wrapped up shortly after 3pm.

“If Senate Republicans won’t tell the American people what’s in this bill, then Democrats are going to force this chamber to read it from start to finish,” Senate Minority Leader Chuck Schumer (D, NY) said.

After that, lawmakers will debate the bill and then begin what is known in the Senate as a vote-a-rama, an unlimited series of amendments that can change the bill. If they have a clear majority for their plans, Republicans can use what’s known as a “wraparound” amendment at the end to restore whatever bill they can agree to.

Wall Street Journal