Senate Republicans have started work on President Trump’s economic package, nicknamed his “big, beautiful bill.” This plan includes $4.5 trillion in tax breaks and $2 trillion in spending cuts. The Senate voted 52-48 to begin drafting their version, with only Republican Senator Rand Paul voting against it alongside all Democrats. This action follows the House Republicans’ proposal from last month.
This economic package comes at a difficult time, as markets are still reacting to Trump’s new tariffs. While Democrats don’t have enough votes to stop the bill, they plan to use procedure rules to slow it down. Democrats argue the plan helps the wealthy while cutting important services like healthcare and veterans programs. Republicans say their plan prevents a $4 trillion tax increase by making Trump’s earlier tax cuts permanent. The Senate plan also includes $175 billion for border security, more Pentagon funding, and new tax cuts on tipped wages and Social Security income.