Senate Passes Trump’s ‘One Big Beautiful Bill’ with Tax Cuts and Medicaid Cuts
On June 26, 2025, the U.S. Senate made a historic move by officially passing President Donald Trump’s controversial $3.3 trillion economic package, commonly known as ‘One Big Beautiful Bill’. This landmark legislation includes aggressive tax cuts, significant reductions in Medicaid funding, and sweeping reforms to federal spending. Despite facing fierce political debate across party lines, the bill narrowly passed with a vote of 52 to 48.
The legislation, one of the most ambitious overhauls of federal fiscal policy in decades, positions itself as the cornerstone of Trump’s second-term economic agenda. While Republicans generally praised the bill’s pro-growth measures, critics, including members of the GOP, caution that it could substantially increase the national deficit and negatively impact vulnerable populations.
Also read, EU Threatens Sanctions Over Hungary’s ‘Patriots Only’ Speech.
What’s Inside the ‘One Big Beautiful Bill’?
The One Big Beautiful Bill aims to reshape the U.S. economy by offering deep corporate and personal income tax cuts, reducing Medicaid funding, eliminating select federal programs, and reallocating resources toward national defense and infrastructure. Key provisions include:
- $1.2 trillion in corporate tax cuts over the next decade
- $850 billion in Medicaid cuts, converting much of the funding into state-level block grants
- Increased military spending by 15%, particularly on cybersecurity and space defense
- Deregulation measures for industries such as energy, healthcare, and education
- Repeal of several climate-related federal programs
President Trump declared, “This bill is a revolution that prioritizes America, its workers, and dismantles the corrupt swamp. It’s not just a bill; it’s a transformative change.”
GOP Rift Over Medicaid and Budget Discipline
Despite the support of most Senate Republicans, the bill has exacerbated divisions within the GOP, particularly concerning the significant Medicaid cuts and the projected increase in the federal deficit.
Senator Mitt Romney (R-UT) and Senator Lisa Murkowski (R-AK) expressed concerns that the Medicaid reductions could disproportionately affect seniors, low-income Americans, and rural hospitals. In contrast, Senator Rand Paul (R-KY) voted against the bill, labeling it a “fiscally reckless boondoggle.”
The Congressional Budget Office (CBO) projects that the bill could cause a $1.4 trillion increase in the national deficit over a decade, even considering projected growth. This alarming forecast has garnered concerns from fiscal conservatives and economic analysts alike.
Democrats Condemn the Legislation
Democrats unanimously opposed the bill, calling it a significant transfer of wealth from the poor to the rich. Senate Majority Leader Chuck Schumer (D-NY) condemned the bill, stating that it was a cruel betrayal of the American middle class. Schumer argued that the bill would gut Medicaid while simultaneously providing billions of dollars to billionaires.
Progressive groups have launched campaigns against the bill, highlighting its potential to exacerbate inequality. Healthcare advocacy coalitions have sounded the alarm, warning that Medicaid cuts could result in over 10 million Americans losing their healthcare coverage.
Economic Reactions and Wall Street Response
Markets initially responded favorably to the bill’s passage, with the Dow Jones Industrial Average rising 1.3%, driven by optimism over the corporate tax cuts. Goldman Sachs analysts predicted a short-term earnings boost for large corporations, though they warned of long-term economic uncertainty if deficits spiral.
However, labor unions and health organizations condemned the bill’s disregard for public programs. The American Medical Association (AMA) and AARP both released statements urging the House to reject the legislation due to its impact on public health and seniors.
What Happens Next?
The bill now proceeds to the House of Representatives, where it faces more formidable opposition. Speaker Hakeem Jeffries (D-NY) has made it clear that the bill will not be approved in its current state. He emphasized that they will not endorse a bill that deprives Americans of healthcare while simultaneously increasing military budgets while neglecting their schools, climate, and families.
Despite this, a group of moderate Democrats has expressed interest in negotiating specific sections of the bill, particularly those related to infrastructure and job creation, which leaves the possibility of compromise open.
Conclusion
The Senate’s approval of the ‘One Big Beautiful Bill’ marks a pivotal moment in American economic policy and the 2026 election cycle. While hailed by Trump loyalists as a bold move toward economic freedom and deregulation, the bill’s Medicaid cuts, tax breaks for corporations, and potential deficit expansion have drawn sharp criticism from economists, healthcare experts, and civil society.
With political tensions rising and the bill’s fate uncertain in the House, the outcome will not only shape U.S. fiscal policy but could also determine the future of bipartisan cooperation in Washington.
