Senate Republicans are racing to pass a major budget bill that supports President Donald Trump’s second-term agenda. They want to approve it before their self-set deadline of July 4. Party leaders released the latest 940-page version shortly after midnight and aim to hold the first vote by Saturday afternoon.

A Costly but Central Bill

This bill expands Trump-era tax cuts and is worth about $3.8 trillion. Two weeks ago, the House narrowly passed it. But now, Senate Republicans are debating how much to cut from welfare programs to balance its high cost.

Still, the White House insists the bill will save money. Officials claim it could lower the annual budget deficit by $1.4 trillion.

Senator Lindsey Graham, who chairs the Senate Budget Committee, said, “By passing this bill now, we will make our nation more prosperous and secure.”

Deep Divisions Over Medicaid Cuts

Senate Republicans remain split. Some oppose steep cuts to Medicaid, especially those from rural states. Earlier proposals would have reduced funding to local Medicaid providers. To address this, the new draft delays those cuts and adds $25 billion in rural health support from 2028 to 2032.

The bill also suggests lifting the cap on state and local tax (SALT) deductions to $40,000. This amount would rise slightly every year until 2029. After that, the cap would drop back to $10,000. This clause is important for Republican lawmakers from high-tax states like New York, New Jersey, and California.

Fast-Track Strategy in Senate

To move the bill quickly, Senate Republicans are using budget reconciliation. This method allows them to pass the bill with a simple majority instead of the usual 60 votes. Since the GOP holds 53 seats, they can pass it without Democratic support.

What’s Inside Trump’s “Big Beautiful Bill”

Extending Tax Cuts

Republicans argue that if this bill fails, a $3.8 trillion tax hike will hit Americans when the current cuts expire in December. The bill would make those cuts permanent. It also adds new breaks, like:

• No taxes on tips, overtime, or some car loans.

• A $6,000 deduction for older adults making under $75,000.

• An increase in the child tax credit to $2,200 (Senate version) or $2,500 (House version).

However, lower-income families wouldn’t get the full credit.

Middle-income taxpayers would see tax cuts ranging from $500 to $1,500. The wealthiest would save about $12,000 annually. The poorest might lose $1,600, according to the Congressional Budget Office (CBO).

Boosting Trump’s Border Agenda

The bill includes $350 billion for Trump’s immigration and border security plans:

• $46 billion for building the U.S.-Mexico border wall.

• $45 billion for 100,000 migrant detention beds.

• Funds to hire 10,000 ICE officers, each with a $10,000 bonus.

• A goal to deport 1 million people each year.

It also creates a $10 billion grant fund for states that help with immigration enforcement. The Attorney General gets another $3.5 billion under a program called BIDEN (Bridging Immigration-related Deficits Experienced Nationwide).

Immigrants would face new fees when applying for asylum.

Military and Defense Spending

The Pentagon would receive billions for:

• Shipbuilding and weapons programs.

• Troop welfare.

• $25 billion for the Golden Dome missile defense system.

• $1 billion for border-related security operations.

Cutting Programs to Pay the Bill

To reduce costs, Republicans propose cutting key programs:

• Medicaid and food stamps.

• Green energy tax breaks and incentives.

• Other social programs created under Biden and Obama.

They say these programs must serve their original purpose and stop waste or abuse. The bill introduces:

• 80-hour monthly work requirements for many adults on Medicaid and food stamps.

• Parents of children over 14 would also have to work.

• A $35 co-payment for Medicaid services.

Though most Medicaid users already work, the CBO says the bill would cause:

• 10.9 million people to lose health coverage.

• 3 million to lose food stamp eligibility.

To soften the impact, the Senate version includes a $25 billion Rural Hospital Transformation Fund. This aims to protect small hospitals in rural areas.

Green Energy Rollbacks

Both House and Senate bills slash green energy support. They target tax breaks for:

• Electric vehicles.

• Wind and solar power.

• Other clean energy projects.

These cuts are expected to save $1.5 trillion.

More GOP Priorities in the Bill

The bill also includes:

• Trump Accounts — new children’s savings accounts with up to $1,000 from the government.

• $40 million to build Trump’s “National Garden of American Heroes.”

• A tax on university endowments.

• Limits on AI development.

• A ban on federal money for gender-transition surgeries.

• An end to the $200 tax on gun silencers and short-barrel weapons.

• A ban on federal funding for Planned Parenthood.

• $88 million for pandemic response oversight.

• Extra money for NASA’s Artemis moon mission and Mars exploration.

Disputes Over the True Cost

The CBO says the House version of the bill would cost $3.8 trillion and add $2.4 trillion to the national deficit over 10 years.

However, Senate Republicans argue that tax breaks already in place shouldn’t count as new costs. Using that logic, they claim the tax cost is only $441 billion. Critics, including Democrats, call this “magic math.” The Committee for a Responsible Federal Budget estimates the cost at $4.2 trillion.