Trump Sends VP Vance to Capitol Hill as GOP Scrambles to Pass $4.2 Trillion Tax and Spending Bill

Vice President JD Vance spent a tense Saturday on Capitol Hill, working alongside top Senate Republicans to gather enough support for President Donald Trump’s massive $4.2 trillion tax and spending bill. With just days left before the White House’s July 4 deadline, the pressure is on to bring all 50 GOP senators on board.

The legislation—one of the largest of Trump’s presidency—includes sweeping tax cuts, controversial Medicaid reforms, and major changes to clean energy policies. But the bill has exposed deep divides within the Republican Party, forcing party leaders into a day of intense lobbying, last-minute negotiations, and personal appeals to undecided lawmakers.

Senate Majority Leader John Thune called a crucial procedural vote Saturday night, but three Republican senators—Cynthia Lummis (WY), Rick Scott (FL), and Mike Lee (UT)—refused to cast their votes. Meanwhile, others remained undecided, prompting Vance to meet with holdouts both on the Senate floor and behind closed doors in Thune’s office.

His efforts paid off in at least one case: Senator Lisa Murkowski of Alaska agreed to move the bill forward after discussions with Vance and Thune.

Trump, determined to get the bill passed before Independence Day, even spent the weekend golfing with Senator Rand Paul—a longtime critic—in an attempt to soften resistance from the more skeptical members of his party.

Divisions Run Deep Despite GOP Control

Even with Republicans in control of the Senate, unity is proving elusive. Senators Paul, Ron Johnson (WI), and Thom Tillis (NC) voted against even beginning debate on the bill. Johnson later joined late-night negotiations in Thune’s office, saying he might reconsider his vote.

Another hiccup came from Montana Senator Tim Sheehy, who threatened to block the bill unless language allowing public land sales was removed. Thune defused the standoff by offering Sheehy a vote on an amendment to strip the land sale provision.

Senate Republicans are rushing to finalize the bill so the House can vote on it early next week. That would allow Trump to sign it into law on or before July 4, a symbolic date the administration is determined to meet.

SALT Deduction Deal Aims to Win Over Swing-State Republicans

One of the biggest changes in the new Senate version of the bill is a revised SALT (state and local tax) deduction. The current cap of $10,000 would be raised to $40,000 for five years starting in 2025, after which it would drop back to $10,000. The higher deduction would phase out for individuals making more than $500,000 a year.

A House proposal to restrict how some businesses could use the SALT deduction was removed, helping win support from Republicans in high-tax states. While some fiscal conservatives argue it will balloon the deficit, the White House is backing the compromise to keep the package intact.

Wall Street Relief, Tax Breaks for Workers and Businesses

The Senate version also scraps a proposed “revenge tax” (Section 899) that would have hit some foreign companies and investors. The financial industry had voiced strong opposition, and the change came at the request of Treasury Secretary Scott Bessent.

The bill would extend many of the individual and business tax cuts from Trump’s 2017 law and add temporary breaks for tipped workers, seniors, people working overtime, and those buying cars. These additions aim to offer visible benefits to working- and middle-class voters in the lead-up to the 2026 midterms.

Medicaid Reforms Spark Debate Among Moderates

To address concerns from more moderate Republicans, the bill includes a $25 billion fund to help rural hospitals absorb cuts to Medicaid. Senator Susan Collins (ME) had demanded a $100 billion cushion and said she remains undecided but is willing to continue debate.

Another concession delays the impact of a proposed cap on state Medicaid provider taxes from 2031 to 2032. These taxes are used by states to secure federal funding for hospitals, especially in states that expanded Medicaid under the Affordable Care Act. Starting in 2028, the cap would begin to phase in.

The bill also imposes new work requirements for Medicaid recipients and would require co-pays and other cost-sharing from those who gained coverage under the ACA. These measures helped win over Senator Josh Hawley (MO), who had previously criticized the Medicaid cuts as too harsh.

Clean Energy Cuts Narrow Focus on Traditional Fuels

The legislation takes aim at clean energy incentives passed under the Biden administration. Tax credits for wind and solar projects would only apply if those projects are up and running by the end of 2027—tightening the original timeline, which had allowed credits for projects under construction.

That change could hurt companies like NextEra Energy, a major player in renewables, but might help bring Senator Mike Lee (UT) on board. The bill also expands energy tax breaks for metallurgical coal used in steelmaking.

A popular $7,500 tax credit for new electric vehicles would end on September 30 under the bill. Credits for used and commercial EVs would also be eliminated at the same time.

Democratic Leader Chuck Schumer warned that ending clean energy tax breaks would raise power bills and eliminate thousands of renewable energy jobs.

Other Key Changes in the Bill

• Consumer Financial Protection Bureau: The bill cuts funding for the agency.

• Food Assistance: Reduces federal payments to states for SNAP (food stamps).

• Border Wall: Adds more funding for construction at the southern border.

• IRS Free Filing: A plan to shut down the IRS’s free tax-filing system was dropped, but the bill still includes $15 million to study replacing the program.

• Remittance Tax: A proposed 3.5% tax on money sent abroad by non-citizens has been lowered to 1%, a win for companies like Western Union and MoneyGram.

Raising the Debt Ceiling to Avoid Default

To avoid a government default, the bill includes a $5 trillion increase in the federal debt ceiling, buying time into next year. The U.S. Treasury had warned that without action, the country could miss payments as early as August.

Clock Ticking as Senate GOP Aims for Weekend Vote

Senate Majority Leader John Thune is targeting a final vote by Sunday, but floor delays pushed by Democrats could stall that plan until Monday. If the measure passes the Senate, House Republicans are expected to return to Washington early next week to finalize the legislation.

Still, hurdles remain. Speaker Mike Johnson may have to make additional concessions to shore up support in the House, especially from fiscally conservative and swing-district members uneasy with the bill’s size and scope.

With the July 4 deadline set by the Trump administration fast approaching, Republicans are racing to secure a legislative victory—but they’re doing it with little room for error and a caucus still far from fully aligned.

Also Read: Trump’s ‘Big Beautiful Bill’ Offers Tax Breaks, Adds Trade Risks