U.S. Senate Passes Trump’s ‘Big Beautiful Bill’, Sends It to the House

The U.S. Senate narrowly passed President Donald Trump’s signature legislation, the One Big Beautiful Bill Act (OBBBA), on July 1, 2025, in a 51–50 vote, with Vice President JD Vance casting the tie-breaking vote.

The sweeping bill — which revamps tax, energy, and federal spending policies — now heads to the House of Representatives, where it faces steep hurdles ahead of Trump’s self-imposed July 4 deadline. With wide-ranging implications for national debt, energy markets, and even crypto policy, the legislation is drawing close scrutiny from investors.

Senate’s Narrow Vote and Key Provisions

Following a 24-hour “vote-a-rama” filled with amendment debates, the Senate approved OBBBA with significant structural reforms.

Key provisions include permanent extensions of the 2017 Tax Cuts and Jobs Act, a higher SALT deduction cap ($10,000 to $40,000 through 2029), and new write-offs for tips (up to $25,000), overtime pay, and auto loan interest on U.S.-assembled vehicles.

On the spending side, the bill allocates $150 billion for defense and border security — $46 billion for a southern border wall and $45 billion for detention capacity to support 1 million annual deportations.

The bill’s fiscal impact is substantial, with the Congressional Budget Office (CBO) projecting a $3.3 trillion increase in the national debt over the next decade, driven by tax cuts and a $5 trillion debt ceiling hike.

Energy reforms phase out renewable energy tax credits after 2026, potentially cutting 300 GW in capacity — a move that could impact electricity-intensive industries like crypto mining.

Internal GOP divisions emerged during the Senate vote. Republican Senators Thom Tillis, Rand Paul, and Susan Collins opposed the legislation, citing concerns over deep Medicaid cuts, rural hospital closures, and the massive $5 trillion debt ceiling increase.

House Challenges and Political Divisions

The House narrowly passed an earlier version of the bill on May 22 with a 215–214–1 vote, but revisions made in the Senate — especially the debt ceiling hike — have reignited controversy.

Hardline Republicans like Chip Roy and Ralph Norman are demanding deeper cuts, while centrist GOP members are concerned about ballooning deficits.

Meanwhile, Democrats, led by Minority Leaders Hakeem Jeffries and Chuck Schumer, have rejected the bill outright, calling it a handout to the wealthy and a “big, ugly betrayal” of economic stability. The House Rules Committee is now debating further amendments, though prospects for final passage remain uncertain.

Broader Implications for Markets and Public Reaction

The bill’s $3.3 trillion debt impact has rattled investors, raising fresh concerns about fiscal discipline and inflation — factors that often ripple through volatile markets such as cryptocurrency.

Some in the crypto community warn that higher energy prices and macroeconomic instability could undercut digital asset growth.

Adding to the controversy, Elon Musk claimed on X that the removal of funding for enforcement of federal contempt of court orders is the actual crux of the "Big Beautiful Bill." He noted that while this provision is nominally aimed at the deportation of illegal immigrants, it also opens the door to potential abuses of power by the President.

On July 1, Trump acknowledged the July 4 deadline might slip, stating he hopes to pass the bill “around July 4” but is open to delays to ensure its success.

Addressing backlash over aggressive spending cuts, Trump reassured moderates, promising a “measured” approach and arguing that bold, comprehensive legislation is essential for long-term economic transformation.

As the bill advances amid deep partisan divides, its outcome could shape U.S. fiscal policy for years — and signal how crypto markets interpret the balance between expansionary politics and economic credibility.