WASHINGTON — The Senate passed a budget framework early Saturday to begin the process of enacting President Trump’s signature campaign pledges — including his plans to cut taxes on tips, overtime pay and Social Security benefits.
The 51-48 vote unlocks the “reconciliation” process that allows legislation to pass the Senate with a bare majority rather than the typical 60-vote threshold.
The package is currently ill-defined, but its initiation was a significant win for Trump, who has called on allies to cram many of his top policy requests into “one big beautiful bill.”
Senate Majority Whip John Barrasso (R-Wyo.) said: “The American people gave us a mission and a mandate: secure borders, lower taxes, affordable energy, peace through strength, and, of course, efficient, effective government. Senate Republicans’ bold budget blueprint delivers.”
The specific details will be subject to a grueling debate over the next two months or more — with Republicans hoping for final passage by the end of May.
The package is expected to include an extension of Trump’s 2017 law that lowered individual income tax rates, along with an increase in the state and local tax deduction (SALT) cap that has hammered high-tax jurisdictions like New York.
Sen. Susan Collins of Maine and Rand Paul of Kentucky were the lone Republican opponents of the blueprint.
Most of the specific details in the package remain undecided, such as the particular amount by which the SALT cap would be lifted, from its current $10,000 benchmark.
And it’s possible some of Trump’s top requests will be clipped by the upper chamber’s powerful parliamentarian, an unelected gatekeeper who decides whether provisions can be included or if they require standard legislation.
The finer points of Trump’s proposed tax cuts on tips, overtime and Social Security benefits remain vague — including the possibility that they will be subject to income caps that blunt their potential for steeply reducing government revenue.
The White House has called for higher taxes on hedge fund managers and billionaire sports-team owners to partially offset the tax breaks.
Trump said ahead of the voting that “if we get this done, it’ll be the most incredible bill ever passed in the history of our Congress.”
He also called last week for the inclusion of new tax write-offs for people who purchase US-manufactured cars — as he slapped a 25% tariff on foreign vehicles and auto parts. About half of the cars sold in America are made abroad.
Democrats used an overnight “vote-a-rama” to call attention to their opposition to federal agency spending cuts spearheaded by Elon Musk’s Department of Government Efficiency, which aims to slash $1 trillion in annual spending, halving the deficit.
The legislation was approved around 2:30 a.m Saturday.
The framework would raise the debt ceiling by up to $5 trillion — removing a point of future leverage by Democrats.
Rejected amendments also included one from Senate Minority Leader Chuck Schumer (D-NY) to rein in Trump’s “Liberation Day” tariffs announced Wednesday, which include a 10% tariff on most countries and higher “reciprocal” tariffs on many major partners.
The new tariffs caused a massive dip in the stock market on Thursday and Friday.
“Tonight, Senate Democrats gave Senate Republicans the chance to hit the kill switch on Donald Trump’s tariffs on DOGE, on the attacks against Social Security and Medicare and Medicaid,” Schumer said.
“And at each opportunity, Republicans refused.”
