• The Senate tax bill is projected to add $3.3 trillion to the national debt over ten years.
• Republican divisions grow as lawmakers debate funding cuts to social programs like Medicaid and SNAP.
• Democrats warn millions could lose health insurance if the bill is passed.
• Trump aims for quick approval before the July 4 holiday.

Senate Republicans are making strides to advance President Donald Trump’s extensive tax cut and spending bill, with the nonpartisan Congressional Budget Office (CBO) estimating that the legislation will add approximately $3.3 trillion to the national debt over the next decade, which is an increase of about $800 billion from the previous House version. This has raised serious fiscal concerns among some Republicans, who argue against the CBO’s assessment, suggesting that extending existing tax policies should not inflate the debt burden, according to SCMP, HuffPost, and Reuters.

The Senate’s version not only mirrors the tax cuts proposed in the House bill but also aims to finance these cuts by reducing expenditures on crucial social programs, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP). According to the CBO, this could leave approximately 11.8 million people uninsured, an increase from the 10.9 million projected under the House bill, creating a burgeoning rift among Republicans focused on fiscal responsibility, as reported by HuffPost and Reuters.

Democratic leaders, including Senate Minority Leader Chuck Schumer, have condemned the bill, labeling it as an attempt to benefit the wealthy at the expense of essential services. Schumer criticized the Republicans for “deploying fake math and accounting gimmicks,” asserting that the policy will lead to drastic cuts in programs that serve the lower-income population, according to SCMP and Reuters.

The urgency to finalize the legislation is heightened by a self-imposed deadline of July 4, as Trump's administration is eager to secure passage before the holiday. However, lawmakers face the additional challenge of raising the debt ceiling later this summer, necessitating careful navigation of Senate votes, especially given the narrow 51-49 vote that allowed the debate to commence, according to HuffPost and Reuters.

As the Senate debates the bill, significant Republican figures have voiced their concerns over the potential implications of such a large increase in national debt. For instance, Senator Rand Paul voted against initiating the debate due to fears of raising the federal borrowing limit by an additional $5 trillion, emphasizing a growing divide within the party regarding the economic repercussions, according to SCMP, HuffPost, and Reuters.