Shortly after President Trump’s tariffs caused a steep decline on Wall Street, Senate Republicans reportedly pushed forward with their plans for trillions of dollars in tax-cut extensions and new benefits, finishing a critical budget vote to further his legislative agenda.
Early on Saturday morning, lawmakers adopted a fiscal framework for Trump’s planned tax cuts and additional military and border security spending by voting 51-48. Sens. Susan Collins (R., Maine) and Rand Paul (R., Ky.) deviated from their party to vote against the budget.
In an attempt to pressure Republicans into politically awkward votes on topics like Medicaid, Social Security, and tariffs, Democrats, who opposed the proposal, exploited the overnight session.
The framework’s passage is a significant step for Republicans, who are having difficulty resolving internal disagreements on members’ hunger for spending cutbacks and their willingness to accept growing budget deficits.
The budgetary structure for the tax-and-spending bill was the main point of agreement among Senate GOP leaders, who urged lawmakers to proceed with the process and assured them that any potential snags would be resolved later.
However, the Senate approach postpones crucial choices over the extent of expenditure cuts, which Republicans would ultimately need to resolve in legally enforceable legislation.
The framework delays a reckoning in the struggle between Senate Republicans who are concerned about how the House plans would hurt Medicaid recipients and rural hospitals, and House conservatives who argue that spending cutbacks should be linked to tax savings.
Both the House and the Senate need to agree on a budget fairly soon and a comprehensive package later this year in order to cross the finish line.
By employing a streamlined procedure, they are able to approve the law on simple-majority votes and avoid the Senate’s 60-vote filibuster threshold.
Republicans can only lose three votes in each chamber if all Democrats are against them, as they hold a 220–213 House majority and a 53–47 Senate advantage.
So far, Republicans have remained largely united. Paul argued that the planned debt-limit increase included in the budget plan was excessive, which is why he rejected it.
A vote of 5 to 94 rejected his bid late Friday to lower the $4 trillion or $5 trillion debt-limit rise to $500 billion.
As early as next week, the House may vote on the Senate’s recently approved budget, formally beginning months of in-depth discussions on tax and expenditure reductions.
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