Trump’s sweeping tax cut and spending bill heads to House – US politics live | Trump administration

July 2, 2025

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House expected to vote on Trump’s sweeping tax and spending bill after narrowly passing Senate

Good morning and welcome to our live coverage of US politics as Donald Trump’s sweeping tax cut and spending legislation is expected to head to the House after it cleared the Senate last night with the narrowest of margins.

The Senate passed the measure in a 51-50 vote with vice-president JD Vance breaking a tie after three Republicans – Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky – joined all 47 Democrats in voting against the bill.

It followed a long debate in which Republicans grappled with the so-called “one big beautiful” bill’s price tag – it is set to raise the deficit by $5 trillion – and its impact on the US healthcare system.

The vote in the House, where Republicans hold a 220-212 majority, is likely to be close.

Mike Johnson, the House speaker, said during an interview with Fox News’ Sean Hannity that Republican leadership would seek to move the legislation through the Rules Committee this morning and get it before the entire House before Friday’s holiday, unless travel plans were upset by thunderstorms that have menaced the Washington area.

“Hopefully we’re voting on this by tomorrow or Thursday at latest, depending on the weather delays and travel and all the rest – that’s the wild card that we can’t control,” Johnson said yesterday.

A White House official told reporters that Trump would be “deeply involved” in pushing House Republicans to approve the bill. “It’s a great bill. There is something for everyone,” Trump said at an event in Florida. “And I think it’s going to go very nicely in the House.”

Is Trump’s optimism misplaced? You can read our report on the bill’s progress so far and prospects for today here:

Entertainingly at least, the bill has reanimated the much-missed Musk-Trump feud, with the tech billionaire calling the legislation “insane” and suggesting he could form a new political party if it passed.

In response, Trump claimed he could “look into” deporting Musk. So stay with us for all the developments.

In other news:

Trump announced on his social media platform that Israel has agreed to a 60-day ceasefire in its war in Gaza and urged Hamas to accept the terms of the agreement. The news comes as Israeli prime minister, Benjamin Netanyahu, is scheduled to visit the White House on 7 July.
Trump toured “Alligator Alcatraz”, a controversial new migrant detention jail in the remote Florida Everglades, and celebrated the harsh conditions that people sent there would experience. Florida governor, Ron DeSantis, and Homeland Security secretary, Kristi Noem, said detainees could arrive at the rapidly constructed facility as soon as today. Trump later revisited his idea of “renovating and rebuilding Alcatraz”, with a view to reopening the infamous island prison in San Francisco, which has been closed for over 60 years.
The Pentagon has halted shipments of air defense missiles and other precision munitions to Ukraine over concerns that US stockpiles are too low. On Sunday, Moscow fired more than 500 aerial weapons at Ukraine overnight, in a barrage that Kyiv described as the biggest air attack so far of the three-year war.
USAID will officially stop implementing foreign aid starting today, secretary of state Marco Rubio said. He added that the US’s assistance in the future will be targeted and limited, focusing on trade rather than aid.
The Trump administration raised the possibility of stripping Zohran Mamdani, the Democratic mayoral candidate for New York City, of his US citizenship over his vocal support for Palestinian rights. Democrat senator Chris Murphy slammed the idea as “racist bullshit”.

Key events

Lauren Gambino

US House Republicans were set to vote on Donald Trump’s signature tax-and-spending bill on Wednesday, a day after it narrowly passed the Senate.

But the fate of Trump’s so-called “big, beautiful bill” hangs in the balance as House speaker Mike Johnson seeks to quell an internal revolt over the changes made by the Senate.

The Senate passed the bill, with JD Vance, the vice-president, casting the tie-breaking vote, on Tuesday, after a record-setting, all-night session. Now the chambers must reconcile their versions: the sprawling megabill goes back to the House, where Johnson has said the Senate “went a little further than many of us would have preferred” in its changes, particularly to Medicaid, a program that provides healthcare to low-income and disabled Americans.

But the speaker vowed to “get that bill over the line”. Trump has set a Fourth of July deadline for Congress to send the bill to his desk.

Early on Wednesday morning, the House rules committee advanced the measure, sending it to the floor for consideration.

In a Tuesday night interview with Fox News’s Sean Hannity, Johnson said he expects to hold a House vote on Wednesday but acknowledged that travel disruptions caused by weather delays were a “wild card” that may impact attendance. In that case, he said the vote would likely take place on Thursday “at the latest”.

The House approved an initial draft of the legislation last month by a single vote, overcoming Democrats’ unanimous opposition. But many fiscal conservatives are furious over cost estimates that project the Senate version would add even more to the federal deficit than the House-passed plan.

US president Donald Trump’s administration has decided to lift aid cuts for Tibetans in exile and provide $7 million in financing for projects such as those supporting health and education, the leader of the Tibetan government in-exile said on Wednesday.

The Trump administration started cutting foreign aid after taking office in January as part of its ‘America First’ policy, which has had an impact on programmes including those aimed at securing food supplies and preventing the spread of HIV in some of the poorest parts of the world, Reuters reported.

Penpa Tsering, leader of the Central Tibetan Administration (CTA) in India, the government in-exile, said he believed Tibetans became “collateral damage” in foreign assistance cuts and that their leadership had worked hard to restore US funding.

“I’m happy to inform you that the US government has decided to lift the termination,” Tsering told reporters in the northern Indian town of Dharamshala on the sidelines of Tibetan Buddhist spiritual leader, the Dalai Lama’s 90th birthday celebrations.

“We received this communication just day before yesterday.”

Legally mandated US national climate assessments seem to have disappeared from the federal websites built to display them, making it harder for state and local governments and the public to learn what to expect in their back yards from a warming world.

Scientists said the peer-reviewed authoritative reports save money and lives. Websites for the national assessments and the US Global Change Research Program were down Monday and Tuesday with no links, notes or referrals elsewhere. The White House, which was responsible for the assessments, said the information will be housed within Nasa to comply with the law, but gave no further details.

Searches for the assessments on Nasa websites did not turn them up. Nasa did not respond to requests for information. The National Oceanic and Atmospheric Administration, which coordinated the information in the assessments, did not respond to repeated inquiries.

“It’s critical for decision-makers across the country to know what the science in the National Climate Assessment is. That is the most reliable and well-reviewed source of information about climate that exists for the United States,” said Kathy Jacobs, a University of Arizona climate scientist, who coordinated the 2014 version of the report.

“It’s a sad day for the United States if it is true that the National Climate Assessment is no longer available,” Jacobs added. “This is evidence of serious tampering with the facts and with people’s access to information, and it actually may increase the risk of people being harmed by climate-related impacts.”

Robert Tait

The Trump administration has raised the possibility of stripping Zohran Mamdani, the Democratic mayoral candidate for New York City, of his US citizenship as part of a crackdown against foreign-born citizens convicted of certain offences.

Karoline Leavitt, the White House press secretary, appeared to pave the way for an investigation into Mamdani’s status after Andy Ogles, a rightwing Republican representative for Tennessee, called for his citizenship to be revoked on the grounds that he may have concealed his support for “terrorism” during the naturalization process.

Mamdani, 33, who was born in Uganda to ethnic Indian parents, became a US citizen in 2018 and has attracted widespread media attention – and controversy – over his vocal support for Palestinian rights.

Donald Trump was asked on Tuesday about Mamdani’s pledge to “stop masked” Immigration and Customs Enforcement (Ice) agents “from deporting our neighbors”. The US president responded: “Well, then, we’ll have to arrest him,” Axios reported.

Mamdani posted a statement on X in response. “The President of the United States just threatened to have me arrested, stripped of my citizenship, put in a detention camp and deported. Not because I have broken any law but because I will refuse to let Ice terrorize our city,” he wrote.

He continued: “His statements don’t just represent an attack on our democracy but an attempt to send a message to every New Yorker who refuses to hide in the shadows: if you speak up, they will come for you. We will not accept this intimidation.”

Hiroshima mayor invites Trump to visit city after atomic bomb comments

US president Donald Trump ought to visit Hiroshima to see the effects of nuclear weapons after he compared the 1945 bombings to recent airstrikes on Iran, the Japanese city’s mayor said.

Trump had told reporters:

That hit ended the war. I don’t want to use an example of Hiroshima, I don’t want to use an example of Nagasaki, but that was essentially the same thing.

Speaking to reporters on Wednesday, mayor Kazumi Matsui said:

It seems to me that he does not fully understand the reality of the atomic bombings, which, if used, take the lives of many innocent citizens, regardless of whether they were friend or foe, and threaten the survival of the human race.

I wish that president Trump would visit the bombed area to see the reality of the atomic bombing and feel the spirit of Hiroshima, and then make statements.

Ukraine calls US envoy to foreign ministry after some weapons deliveries halted

Ukraine called the acting US envoy to the foreign ministry on Wednesday and stressed the importance of continuing critical military aid to fight Russia’s invasion, the ministry said, after Washington halted some deliveries of ammunition and missiles to Kyiv.

In a statement, it said deputy foreign minister Mariana Betsa expressed gratitude to deputy chief of mission John Ginkel for US support, but warned that a cut-off in aid, particularly air-defence systems, would embolden Russia, Reuters reported.

“The Ukrainian side emphasised that any delay or procrastination in supporting Ukraine’s defense capabilities will only encourage the aggressor to continue the war and terror, rather than seek peace,” it said.

A federal judge has blocked the Trump administration’s bid to end temporary deportation protections and work permits for approximately 521,000 Haitian immigrants before the program’s scheduled expiration date.

Earlier this year, the Department of Homeland Security rescinded Joe Biden’s extension of temporary protected status (TPS) for Haitians through 3 February. It called for the program to end on 3 August, and last week pushed back that date to 2 September.

The US district judge Brian Cogan in Brooklyn, however, said the homeland security secretary Kristi Noem did not follow instructions and a timeline mandated by Congress to reconsider the TPS designation for Haitians.

“Secretary Noem does not have statutory or inherent authority to partially vacate a country’s TPS designation”, making her actions “unlawful”, Cogan wrote. “Plaintiffs are likely to (and, indeed, do) succeed on the merits.”

Cogan also said Haitians’ interests in being able to live and work in the United States “far outweigh” potential harm to the US government, which remains free to enforce immigration laws and terminate TPS status as prescribed by Congress.

Paramount settles with Trump for $16m

CBS parent company Paramount on Wednesday settled a lawsuit filed by Donald Trump over an interview broadcast in October, in the latest concession by a media company to the US president, who has targeted outlets over what he describes as false or misleading coverage.

Paramount said it would pay $16m to settle the suit with the money allocated to Trump’s future presidential library, and not paid to Trump “directly or indirectly”.

“The settlement does not include a statement of apology or regret,” the company statement added.

Trump filed a $10bn lawsuit against CBS in October, alleging the network deceptively edited an interview that aired on its 60 Minutes news program with then-vice-president and presidential candidate Kamala Harris to “tip the scales in favor of the Democratic party” in the election. In an amended complaint filed in February, Trump increased his claim for damages to $20bn.

CBS aired two versions of the Harris interview in which she appears to give different answers to the same question about the Israel-Hamas war, according to the lawsuit filed in a federal court in Texas.

CBS previously said the lawsuit was “completely without merit” and had asked a judge to dismiss the case.

The White House did not immediately respond to a Reuters request for comment. Edward A Paltzik, a lawyer representing Trump in the civil suit, could not be immediately reached for comment.