What's in the Senate’s version of Trump's spending bill — and who stands to benefit
After weeks of sparring over the specifics of the "onebig, beautiful bill," the package is poised to soon head to the Senate floor, where lawmakers are pushing to get it across the finish line and on PresidentDonald Trump'sdesk before July 4.
Questions remain over whether the House will ultimately accept the Senate version of thebill, which was finalized just before midnight on Friday, as 11th-hour changes brought victories — and some losses — for lawmakers, businesses and special interest groups. The changes underscored the behind-the-scenes jockeying that went on to get the 940-page bill finished.
One major sticking point for fiscal hawks is the megabill's proposed$5 trillion debt ceilingincrease, a figure some Senate Republicans continue to bristle at, raising questions about Senate Majority LeaderJohn Thune'sability to align his chamber.
Thune has said he wants to bring the bill to the floor for a key procedural vote as soon as Saturday afternoon, whileacknowledgingthat he may not have the votes. The uncertainty speaks to the reality of the Republicans' razor-thin majority.
Here are some of the key elements of the Senate's "big, beautiful bill," and who stands to benefit from them:
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Trump's campaign promises
If enacted, the Senate bill would codify several of Trump's campaign promises, including extensions for his2017 tax cuts, such as lowerincome-tax brackets, higher standard deductions, a biggerchild tax creditand other provisions.
The Senate bill also includes new policy proposals, such as tax breaks fortip income, overtime pay,auto loansand abonus deduction for older Americansto help offset Social Security income taxes.
Notably, several of the new tax breaks are only temporary boosts from 2025 through 2028, which could impact taxpayers as early as the 2026 filing season.
An earlier Senate draft would have slashed household taxes by an average ofroughly $2,600 in 2026, slightly less than the House bill, according to the Tax Policy Center. However, the organization found that the benefits from both versions would skew to upper-income families.
'Revenge tax'
Republicans and the Treasury Department on agreed this week to scrap the so-calledrevenge taxprovision — formally known as Section 899 — bringing a sigh of relief to investors on Wall Street who feared it could make the U.S. a less attractive place for investments.
The tax is aimed at retaliating against any countries whose taxes were deemed "discriminatory" or unfair against the U.S.
Treasury Secretary Scott Bessentsaidthat he would roll out a "joint understanding among G7 countries that defends American interests," as he asked Congress to remove the provision from the tax bill.
"Great concern had been expressed by Wall Street and affected stakeholders about the enactment of Section 899 and its impact on foreign investment in the United States, particularly in view of its complexity, potential scope of application and compliance obligations," attorneys at law firm Holland & Knight said in a note of the tax,CNN reports.
'SALT' deduction
The Senate text also includes a tentative deal with House Republicans on the limit on thefederal deduction for state and local taxes, known as SALT. Passed via Trump's 2017 tax cuts, the $10,000 cap has been a sticking point for certain lawmakers in blue states.
Senate Republicans would raise the cap to $40,000 starting in 2025, with the phaseout beginning after $500,000 of income. Both figures would increase by 1% each year through 2029 and the cap would revert to $10,000 in 2030.
However, in a win for industry groups, the legislation would leave intact aSALT cap workaroundfor pass-through businesses, which allows owners to sidestep the $10,000 cap. By contrast, the House-approved bill would have ended the strategy for certain white-collar professionals.
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