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In a narrow 51-48 vote early Saturday morning, Senate Republicans approved a sweeping budget plan designed to fast-track President Donald Trump’s legislative agenda, including major tax cuts and increased military spending.
The budget resolution passed with support from all but two Republican senators—Sen. Rand Paul of Kentucky and Sen. Susan Collins of Maine—but the vote underscored growing fractures within the GOP that could jeopardize the party’s efforts to pass a final budget and any related reconciliation bills.
The approved plan sets the stage for a one-party push to enact Trump’s goals through reconciliation, a legislative maneuver that allows budget-related bills to bypass a Senate filibuster and pass with a simple majority. But it also revealed sharp divisions over how to pay for massive tax cuts and whether Medicaid should face reductions.
GOP Divisions on Medicaid and the Deficit
Sen. Josh Hawley, R-Mo., said he only supported the budget after receiving an “unequivocal” promise from Trump that Medicaid benefits would not be cut.
“I have a big concern about Medicaid cuts,” Hawley said. “The president made clear to me that the benefits will be preserved.”
Sen. Collins expressed similar concerns, stating, “Cutting Medicaid would be very harmful to people in Maine and to our rural hospitals and other health care providers.” She warned that the House-passed version of the budget, which contains deeper spending cuts, “troubles me greatly.”
Tax Cuts vs. National Debt
One of the most controversial aspects of the plan is its use of the “current policy” baseline, a budgetary loophole that would allow Republicans to extend the 2017 Trump tax cuts without officially counting their cost—an accounting maneuver that critics say could hide $3.8 trillion in added debt.
“It might be within the rules, but it doesn’t mean it’s wise,” warned Sen. Bill Cassidy, R-La. on the Senate floor. “To be a conservative is to know that sometimes you don’t open Pandora’s box, even if you can.”
Cassidy said he was given “assurances” that eventual reconciliation legislation would be paid for in other ways, though no details have emerged on how that might happen.
Complicating matters further, Medicare, Medicaid, and Social Security—which make up the bulk of federal spending—are politically untouchable. And with plans to increase military and immigration enforcement funding, Republicans have limited options to offset costs, raising concerns among fiscal conservatives and threatening support in the narrowly divided House.
SALT Deduction and House Tensions
The GOP budget plan also faces headwinds from within the House Republican caucus, particularly from members representing high-tax states like New York and California. These lawmakers demand an expansion of the state and local tax (SALT) deduction, which Trump capped in 2017.
However, most Republicans oppose a larger SALT deduction, citing its cost and the perception that it primarily benefits wealthy blue-state residents. The dispute threatens to derail Republican unity as the House and Senate prepare to reconcile their versions of the budget.
Democrats Seize on Divisions
Senate Democrats tried to force Republicans into politically difficult votes by introducing a series of amendments, including one from Senate Minority Leader Chuck Schumer, D-N.Y., to block Trump’s tariffs if they result in higher consumer costs. The amendment was narrowly defeated, 46-53.
“President Trump’s tariff tax is one of the dumbest things he has ever done as president, and that’s saying something,” Schumer said. “Markets are plummeting. Six trillion dollars in value gone. The odds of a recession are rising.”
Uncertain Path Forward
Saturday’s vote instructs Senate committees to begin writing the detailed legislation, but it remains unclear whether the House and Senate will agree on a unified plan or pursue separate reconciliation bills.
As GOP lawmakers face mounting pressure from constituents, deficit hawks, and advocacy groups, the road ahead looks fraught with ideological and political landmines.
“We’ve got a long ways to go,” Collins cautioned. “This is only the beginning.”
