TRANSCRIPT
It’s been a bruising few days in Washington.
A marathon Senate session, Republican defections, a Vice Presidential tiebreaker and Elon Musk fuming online.
At the centre of it all?
Donald Trump’s sweeping tax and spending plan, the so-called One Big Beautiful Bill Act.
After nearly 27 hours of debate, and with three Republicans siding with Democrats, Vice President JD Vance broke the 50-50 deadlock.
Here he is announcing the result from the Senate floor.
"On this vote the yeas are 50, the nays are 50. The Senate being evenly divided, the vice president votes in the affirmative. The bill as amended is passed."
Senate Republicans barely passed President Trump's flagship tax and spending bill by a razor-thin margin, with Vice President JD Vance breaking the 50-50 deadlock after 27 hours of debate and three Republican defections.
The defections were significant.
Senators Rand Paul, Susan Collins and Thom Tillis all broke ranks.
Senator Paul explains why.
"I think they're going to look at it and see that it's much less conservative than it's starting out to be... this is not a fiscally conservative bill. And if you're someone who thinks that debt is a problem, I don't see how you could vote for this ."
Senator Paul’s opposition centred on the bill’s plan to raise the debt ceiling by A$7.6 trillion.
But for others like Thom Tillis and Susan Collins, it was the sweeping cuts to Medicaid that drew alarm.
Here’s Senator Tillis.
"The White House amateurs advising the president, are not telling him that the effect of this bill is to break a promise."
And Senator Collins, who chairs the Senate Appropriations Committee, warned of impacts on research funding.
"Prior to your confirmation, NIH abruptly and without any notice or input from the scientific community announced a 15 per cent arbitrary cap on research-related costs."
But Republican leaders needed every vote they could muster.
That’s why so much attention was on Alaska’s Lisa Murkowski, who ultimately voted yes, though reluctantly.
"I have to work with people that I didn't vote for. I have to work with people that I don't have as good a bond or connection with, because that's what Alaskans have asked me to do. They've asked me to do some really, really hard things, and this is about as hard as it's ever gotten."
Senate Majority Leader John Thune framed the Medicaid changes as reforms.
"It also includes a number of reforms and strengthens Medicaid in a way that makes it stronger and gets it back to what it was designed to do and for the people it was intended to benefit."
Still, the Congressional Budget Office painted a stark picture; nearly 12 million more Americans uninsured by 2034, and a A$5 trillion increase in the deficit.
Among the fiercest critics was Elon Musk.
The Tesla CEO and once top donor to Mr Trump’s 2024 campaign is now threatening to launch a new political party.
This is what President Trump had to say about that.
"Elon is very upset that the EV mandate is going to be terminated. And you know what? When you look at it, who wants.. not everybody wants an electric car."
Mr Trump downplayed Mr Musk’s influence and attacked other Republican defectors as well, like Rand Paul and Congressman Thomas Massie.
"I have a nice high IQ, they like that you know, we like high IQ people. But they know I make good decisions, that's why we have the hat, Trump was right about everything. But I don't like guys like keep saying no, I vote no, I vote no, there's nothing, let him do something, let him get what he wants, to vote yes, but if you look at his voting record, it's as low as it gets."
Meanwhile, outside Washington, concerns are mounting over the bill’s real-world impact, particularly on the poor and vulnerable.
Here’s Las Vegas Mayor Shelley Berkley voicing her alarm.
"The big beautiful bill may very well be a very bad bill... I am very concerned about cuts to Medicaid. A lot of people in the state of Nevada depend on Medicaid for their healthcare needs, especially for the kids. I'm worried about programs like Meals on Wheels and SNAP and WIC and programs that really make a tremendous difference in the lives of low income families in our community and throughout the state of Nevada and so we're watching this. ... But if it passes, I think we're gonna be in for some financial blows."
So what’s actually in the bill?
The Senate version includes A$6.8 trillion in tax cuts, making Trump’s 2017 tax rates permanent, and a rollback of green energy credits, hitting electric vehicle manufacturers like Tesla.
The bill also includes A$1.82 trillion in cuts to Medicaid and food stamps, through stricter eligibility rules, as well as A$ 531.8 billion for border and national security, including funds for deportations.
And it raises the debt ceiling by A$7.6 trillion.
President Trump says he’s confident the House will approve it in time for his self-imposed 4th of July deadline.
"We had a big day today, the bill passed and I think it's going to do very well with the House. We'll see how that works out. Looks like it's ahead of schedule. Se what happens. Happy about it."
But with changes to Medicaid and growing GOP divisions, House leaders are still unsure if the votes are there.
If amended further, the bill heads right back to the Senate.
Whether this so-called big beautiful bill becomes law or ends in a legislative logjam, one thing’s certain, the political fault lines it’s exposed will shape the 2026 races, and possibly, the Republican Party’s future.
For now, it’s back to the House.
