In a significant move, the US Senate has approved a budget blueprint that will extend President Donald Trump's 2017 tax cuts and implement substantial reductions in government spending. The decision, reached after an all-night legislative session, allows Republicans to bypass the Senate's filibuster rule, enabling them to pass the tax cuts later this year without needing Democratic support.
The vote, which passed by a narrow margin of 51-48, largely followed party lines, with two Republican senators, Susan Collins and Rand Paul, voting against the proposal alongside all Democrats. This approval is a crucial step for Congressional Republicans seeking to advance Trump's agenda on taxes, border security, and military funding.
The plan aims to make Trump's tax cuts permanent, which are set to expire at the end of the year. Republicans argue that allowing these cuts to lapse would result in a significant tax increase for American families. However, independent analysts estimate that extending these cuts could add approximately $5.7 trillion to the federal deficit over the next decade, while Senate Republicans claim the cost is about $1.5 trillion.
The budget also includes provisions to raise the federal debt ceiling by up to $5 trillion, a necessary move to avoid defaulting on the government's obligations. Additionally, it allocates funds for border security and defense, aligning with Trump's priorities.
Democrats have criticized the plan, arguing that it disproportionately benefits the wealthy and could lead to cuts in vital programs like Medicaid. The proposal now moves to the House of Representatives, where further deliberation is expected.