Senate passes Trump’s tax bill, sending it to House for final passage

Senate Approves Major Tax Reform Backed by President Trump

WASHINGTON, D.C. — On July 1, 2025, the United States Senate passed President Donald Trump’s sweeping new tax reform bill, advancing a cornerstone of the Republican administration’s economic agenda. The bill now moves to the House of Representatives, where a final vote is expected later this week.

Key Provisions of the Tax Bill

• Corporate Tax Rate: Lowers the federal corporate tax rate from 21% to 15%.
• Individual Income Tax: Streamlines individual tax brackets and increases the standard deduction for middle-income earners.
• Capital Gains: Reduces long-term capital gains tax rates and adjusts thresholds for high-income investors.
• Child Tax Credit: Expands the child tax credit and introduces new credits for dependents.
• Estate Tax: Raises the exemption threshold for the federal estate tax, effectively eliminating it for most families.

The vote passed largely along party lines, with 53 senators in favor and 47 opposed. Republican leaders hailed the bill as a significant step toward boosting economic growth and supporting American families and businesses. Democrats expressed concerns about the bill’s impact on the federal deficit and potential benefits skewed toward higher-income earners.

Next Steps in the Legislative Process

The House of Representatives is scheduled to consider the bill on July 3. If passed without amendments, the legislation will be sent directly to President Trump for signature. Any changes would require further negotiation between the chambers.

Speaker of the House Mike Johnson (R-LA) indicated strong Republican support in the House: "We look forward to delivering this tax relief to the American people before the July 4th recess." Minority Leader Hakeem Jeffries (D-NY) reiterated Democratic opposition, citing concerns over budget shortfalls and income inequality.

Economic and Political Implications

This tax package marks the largest overhaul of the U.S. tax code since the Tax Cuts and Jobs Act of 2017. Economists remain divided on the long-term effects, with some projecting increased investment and job creation, while others warn of rising deficits and fiscal risks.

The passage of Trump’s tax bill is expected to be a central issue in the ongoing 2026 midterm election campaigns.

For more updates on the bill’s progress and analysis of its impacts, follow our dedicated coverage on U.S. tax policy and economic reform.