Bankinter | The Senate approved, by a narrow margin of 51 to 50, the stimulus package proposed by President Trump, known as “One Big Beautiful Bill”. The approval was only possible thanks to the tie-breaking vote of Vice President JD Vance, after three Republican senators joined the Democratic opposition.
Bankinter analysis team’s view: The package, which now goes to a new vote in Congress, provides for extending and making permanent the tax cuts introduced in 2017, as well as introducing new tax cuts for various sectors, including exemptions for tips and overtime.
These measures are estimated to add $3.3 trillion (~9% of total US public debt) to the public deficit over the next decade. Among the most controversial points are: significant cuts to social programmes, especially Medicaid; increased investment in defence and border security; and the repeal of incentives for clean energy and limits on tax credits for renewable energy.
If approved by Congress, the text will go to the president for enactment, with Trump pushing for final approval before Independence Day on 4 July.
