Trump’s $4.5 Trillion Tax Cut & Spending Bill Narrowly Clears Senate with VP Tie-Breaker; Musk Threatens to Launch New Party

The US Senate on Tuesday narrowly passed former President Donald Trump’s sweeping tax cuts and spending bill, officially titled the 940-page ‘One Big Beautiful Bill Act’, in a dramatic late-night vote. The Senate ended in a 50-50 tie, which was broken by Vice President J.D. Vance, pushing Trump’s flagship legislation through.

According to AFP, the deadlock came despite strong opposition from Democrats and some Republicans. Senate Majority Leader John Thune reportedly managed to sway two moderate GOP senators just before the vote, helping the bill avoid collapse.

Trump had set a July 4 deadline for Congress to pass the legislation, which features a $150 billion boost in military spending, a continuation of Trump’s mass deportation program, and a massive $4.5 trillion extension of tax cuts from his first term.

However, the bill also proposes sweeping spending cuts, including:

• $1.2 trillion in Medicaid reductions, potentially stripping healthcare from an estimated 8.6 million low-income and disabled Americans.

• Major rollbacks in green energy and EV tax credits, prompting alarm among climate advocates.

Despite the bill being pushed by the GOP leadership, Republican Senators Thom Tillis (NC), Susan Collins (ME), and Rand Paul (KY) broke ranks and voted against it, citing concerns over healthcare and fiscal responsibility.

The bill now heads back to the House of Representatives, where it could face strong opposition from Democrats and some Republicans uneasy about cuts to health and food aid programs.

Billionaire entrepreneur Elon Musk, who has clashed with Trump over the bill, reacted sharply on X (formerly Twitter).

“If this insane spending bill passes, the America Party will be formed the next day,” Musk posted, suggesting he would launch a new political movement to challenge what he called the “Democrat-Republican uniparty.”

Musk also warned lawmakers who backed the bill despite campaigning for fiscal conservatism:

“They will lose their primary next year if it’s the last thing I do on this Earth.”

With the bill’s future uncertain in the House and political tempers rising, the debate over Trump’s most ambitious legislative proposal is far from over.