US Senate Republicans unveil their version of Trump's sweeping tax-cut, spending bill

US Senate Republicans unveiled their version of President Donald Trump's sweeping tax-cut and spending bill, setting the stage for an initial vote on Saturday that could kick off a marathon weekend session and lead to full congressional approval next week.

The 940-page megabill, released late on Friday, would extend the 2017 tax cuts that were Trump's main first-term legislative achievement, cut other taxes and boost spending on the military and border security. Nonpartisan analysts estimate a version passed by the House of Representatives last month would add about $3 trillion to the nation's $36.2 trillion government debt.

Trump has pushed for Congress to pass the bill by the 4 July Independence Day holiday. The White House said early this month that the legislation, titled the One Big Beautiful Bill Act, would reduce the annual deficit by $1.4 trillion.

The release of the legislation could provide a catalyst for lawmakers to vote to open debate after the Senate convenes at 2pm EDT (1800 GMT), though some sections of the bill appeared open to further revision.

A successful vote would kick off a lengthy process that could run into Sunday, as Democrats unveil a series of amendments that are unlikely to pass in a chamber that Republicans control by 53-47 seats.

"By passing this bill now, we will make our nation more prosperous and secure," Senate Budget Committee Lindsey Graham said in a statement accompanying the bill text.

Senate Republicans have been deeply divided over plans to partly offset that bill's heavy hit to the deficit, including by cutting the Medicaid health insurance program for low-income Americans.

Republicans from states with large rural populations have opposed a reduction in state tax revenue for Medicaid providers including rural hospitals. The newly released legislation delays that reduction and includes $25 billion to support rural Medicaid providers from 2028 to 2032.

The legislation would raise the cap on federal deductions for state and local taxes to $40,000 with an annual 1% inflation adjustment through 2029, after which it would fall back to the current $10,000. The bill would also phase the cap down for those earning more than $500,000 a year.

That is a major concern of House Republicans from coastal states including New York, New Jersey and California, who play an important role in keeping the party's narrow House majority.

Republicans are using a legislative maneuver to bypass the Senate's 60-vote threshold to advance most legislation in the 100-member chamber.

Narrow path

Their narrow margins in the Senate and House mean they can afford no more than three Republican no votes in either chamber to advance a bill that Democrats are united in opposing, saying it takes a heavy toll on low- and middle-income Americans to benefit the wealthy.

One Republican in each chamber has been opposed to the legislation from the start.

While a handful of Republicans in both chambers have voiced opposition to some of the bill's elements, this Congress has so far not rejected any of Trump's legislative priorities.

Democrats will focus their firepower with amendments aimed at reversing Republican spending cuts to programs that provide government-backed healthcare to the elderly, poor and disabled, as well as food aid to low-income families.

Senate Democratic Leader Chuck Schumer summarized the reasons for his party's opposition to the bill at a Friday press conference, saying: "It has the biggest cuts to food funding ever" and could result in more than 2 million people losing their jobs. He also highlighted the Republican rollback of clean energy initiatives ushered in by the Biden administration.

Republican Senate Majority Leader John Thune stressed the tax-cut components during a Friday speech to the Senate.

"The centerpiece of our bill is permanent tax relief for the American people," he said as he showcased a new tax break for senior citizens and other taxpayers. The measure, Thune said, will "help get our economy firing on all cylinders again."

It also would raise the Treasury Department's statutory borrowing limit by trillions of dollars to stave off a first-ever default on its debt in coming months.

If the Senate manages to pass Trump's top legislative goal by early next week, the House would be poised to quickly apply the final stamp of approval, sending it to Trump for signing into law.

But with Senate Republicans struggling to find enough spending cuts to win the support of the party's far right, Trump on Friday loosened the leash a bit, saying his July 4 deadline for wrapping it all up was "important" but "it's not the end-all."