In Brief
- The Senate passed H.R. 1, as amended, 51-50 on July 1, 2025 (legislative day began on June 30, 2025).
- Vice President JD Vance broke the tie by voting for the measure and presiding over the closing of the vote.
- Republican Senators Susan Collins (R-Maine), Rand Paul (R-Ky.), and Thom Tillis (R-N.C.) joined Democrats in voting against the measure.
- Bill now heads to the House for consideration. Votes are anticipated Wednesday, July 2, as Speaker Johnson and President Trump have indicated they would like the bill to be signed into law on July 4.
View the full text HERE.
Bill Summary (Tax Foundation)
The Senate Finance Committee introduced its reconciliation tax legislation on June 16, 2025, addressing the expirations of the 2017 Tax Cuts and Jobs Act (TCJA) and making additional changes to US tax policy and spending. On June 27, 2025, the Senate released a new version of the legislative text for the One Big Beautiful Bill (OBBB).
Tax Foundation analysis of the major tax provisions included in the Senate bill finds it would increase long-run GDP by 1.2 percent. The major tax provisions would reduce federal tax revenue by $5 trillion between 2025 and 2034, on a conventional basis. On a dynamic basis, incorporating the projected increase in long-run GDP of 1.2 percent, the dynamic score of the tax provisions falls by $970 billion to $4 trillion, meaning economic growth pays for about 19 percent of the major tax cuts.
Combined with the nearly $1.2 trillion in spending reductions estimated by the Congressional Budget Office (CBO), it is estimated the Senate version of the OBBB would increase federal budget deficits by nearly $2.9 trillion from 2025 through 2034 on a dynamic basis. Further, it is estimated that on a dynamic basis, increased borrowing would add $705 billion in higher interest costs over the decade, resulting in a total deficit increase of nearly $3.6 trillion on a dynamic basis.
The increased borrowing from higher deficits would reduce long-run American incomes as measured by GNP by nearly 0.6 percent, driving a wedge between the long-run effect on GDP of 1.2 percent and on GNP of 0.9 percent.
The debt-to-GDP ratio would rise by 9.3 percentage points, going from 117.1 percent in 2034 without the bill to 126.4 percent in 2034 on a conventional basis with the bill.
Overall, the bill would prevent tax increases on 62 percent of taxpayers that would occur if the TCJA expired as scheduled and significantly improve incentives to invest in the American economy. Though long-run GDP would be 1.2 percent higher under the OBBB, dynamic debt-to-GDP would increase from 162.3 percent to 174.7 percent in about 35 years, indicating the bill would bring higher economic growth as well as higher deficits and debt.
For additional Tax Foundation analysis of major provisions and effective dates, click HERE.
Senate Committees’ Budget Resources
- Senate Agriculture, Nutrition and Forestry Committee, click HERE for a section-by-section and HERE for a one-pager.
- Senate Armed Services Committee, click HERE.
- Senate Banking, Housing and Urban Affairs Committee, click HERE.
- Senate Commerce, Science and Transportation Committee, click HERE.
- Senate Energy and Natural Resources Committee, click HERE for a section-by-section and HERE for a one-pager.
- Senate Environment and Public Works Committee, click HERE for a section-by-section and HERE for a one-pager.
- Senate Finance Committee, click HERE.
- Senate Health, Education, Labor, and Pensions Committee, click HERE for a section-by-section and HERE for a one-pager.
- Senate Homeland Security and Governmental Affairs Committee, click HERE for Homeland Security and HERE for Governmental Affairs.
- Senate Judiciary Committee, click HERE for a section-by-section and HERE for a one-pager.
Media Coverage
