Senate leaders advanced President Trump’s sweeping “One Big Beautiful Bill” on Tuesday, edging it closer to becoming law despite three Republican defections. The vote ended 50–50, with Vice President JD Vance breaking the tie in favor of the legislation.
The last several days of negotiation were especially contentious, particularly over healthcare provisions designed to extract hundreds of billions in savings — but which would result in millions losing coverage.
This conflict triggered the “no” votes of Senators Thom Tillis (NC) and Susan Collins (ME), and led to last-minute concessions to Senator Lisa Murkowski (AK) to sway her to vote “yes.” The third GOP dissent came from Senator Rand Paul (KY), who objected to the $5 trillion debt ceiling increase included in the package.
These Medicaid and debt ceiling adjustments are just two elements of the complex, nearly 900-page bill poised to restructure the business landscape, particularly across taxes, energy, and healthcare.
1. Tax Overhaul for Individuals and Corporations
The bill’s centerpiece is a tax overhaul — with the costliest provisions tied to extending the 2017 Tax Cuts and Jobs Act for individuals on a permanent basis.
For taxpayers, this means continuity: America’s highest earners will continue to see a top rate of 37%. Additional new credits implement Trump’s campaign promises, though in a scaled-back way: eliminating taxes on tips, overtime, and car loan interest, plus an expanded standard deduction for the elderly. The Senate version allows employees to deduct up to $25,000 annually for tips and overtime, compared to the House’s proposal of 100% deductibility within income limits.
Business owners stand to benefit from permanent reinstatement of corporate tax credits related to depreciation, capital investment, factory construction, interest, and R&D — credits that were temporary in the House version. Senate Finance Chair Mike Crapo highlighted this in his statement after passage: corporate provisions give “businesses the certainty they need to make the long‑term investments that power economic growth.”
The bill also extends the 20% pass-through deduction (199A) for small businesses, establishes a $40,000 SALT cap deduction for certain taxpayers, enhances opportunity zone credits, and introduces MAGA account structures.
2. Energy Policy: Clean Credits Phased Out, Fossil Fuel Boosted
The Senate version sharpens its stance against clean energy while boosting fossil fuel industries.
It accelerates the phase-out of Biden-era clean energy tax credits. EV credits will end immediately on September 30 this year. A proposed excise tax on wind and solar projects using Chinese materials was removed after objections — “we just forced them to take it out,” noted Senator Ed Markey (D‑MA). However, new fossil fuel incentives were added, including designating coal as a critical mineral for manufacturing tax credits. “We’re doing coal,” Trump said in a Fox News interview, adding that he thought solar projects were “ugly as hell.”
Tesla CEO Elon Musk criticized the final bill as a cost to clean energy initiatives and a potential strain on energy infrastructure — citing concerns over rising utility costs.
3. Healthcare Cuts Spark Controversy
Healthcare emerged as a core flashpoint. The bill aims to trim approximately $900 billion from Medicaid over time, triggering concern among rural health providers and patients.
Senator Collins explained her opposition: “primarily from the harmful impact [the bill] will have on Medicaid, affecting low‑income families and rural health care providers like our hospitals and nursing homes.” According to a Congressional Budget Office analysis, 11.8 million additional Americans could lose health insurance by 2034 due to these changes — affecting legal immigrants and U.S. citizens alike who fall out of qualifying parameters.
The healthcare components are already eroding public support; a recent Fox News poll revealed a 21‑point deficit, with 59% opposed versus 38% in favor.
Final Steps & Business Community Reaction
With passage in the Senate, the bill now returns to the House. Speaker Mike Johnson and the Rules Committee aim for final passage before July 4. While the conservative Freedom Caucus continues expressing concerns (“we’ve got to deliver for the President—but it has to be the right bill,” said Rep. Chip Roy), business leaders are broadly supportive.
The Business Roundtable, representing major CEOs in Washington, praised the measure, saying it would “send a swift, decisive signal that America will remain a premier destination for businesses to invest, hire and grow.”
Treasury Secretary Scott Bessent also urged rapid action in a statement: “we encourage House Republicans to act quickly.”
In summary, the Senate-approved version of Trump’s megabill carries profound implications for corporate taxation, energy policy, and healthcare coverage — with both broad support and fierce pushback shaping its final form.
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