The Republican majority in the U.S. Senate has approved President Donald Trump’s main spending bill after a marathon session. The bill still needs to be approved by the House of Representatives.
Although the Republicans hold 53 of the 100 seats in the Senate, the result was 50-50. Vice President JD Vance was allowed to decide due to the equal outcome and voted in favor. The debate lasted more than 24 hours.
Trump called the budget proposal “one big, beautiful bill“. The main point in the proposal is a permanent tax cut for companies and individuals. That tax cut is currently valid until the end of this year. Also, tips and overtime should be taxed less, and more money will go to defense and limiting immigration.
According to critics, the law leads to a huge increase in the U.S. national debt. Impartial analysts think that the debt will increase by 3.3 trillion dollars (about 2.8 trillion euros) in ten years.
That debt burden is now so large that the government spends an eighth of its expenses on paying interest. That can increase to a sixth in the coming years. That does not include the repayment of the debts.
Poorest Americans are affected
In addition, the plan is to cut spending on, among other things, food stamps and health care for people with low incomes. According to the analysts, the poorest 10 percent will be worse off, while the richest 10 percent will benefit.
Investments in green energy are also becoming less attractive. That led to fierce exchanges between Trump and his former confidant Elon Musk. The billionaire says that the law helps “industries of the past,” while it does a lot of damage to “industries of the future.”
The bill had previously been adopted by the House of Representatives, with a majority of only one vote. Now the House must vote again on the amendments that have been made in the Senate. For example, the total costs of the package increase and more people no longer receive health care.
According to American media, the vote in the House, which is scheduled for Wednesday, will be very exciting.