The U.S. Senate passed President Trump's controversial tax and spending package after a marathon session. In a 50-50 tie, Vice President Vance's vote was decisive.

A key tax and spending bill pushed by US President Donald Trump has cleared a major hurdle in the US Congress. The Senate approved the"One Big Beautiful Bill" by a razor-thin majority after a marathon all-night session.

In a 50-50 tie, Vice President J.D. Vance's vote was decisive. Three Republicans voted against the measure. The package now goes back to the House of Representatives, which plans to vote on it again tomorrow. Only then can it be presented to the President for signature.

Senate had introduced changes

Although the House of Representatives had already approved an earlier version of the bill, the Senate introduced amendments, meaning the bill now has to be passed by the other chamber of Congress again. These amendments included, for example, reform of the Medicaid health care program.

The Republicans' goal is to get the package to Trump's desk before July 4 - American Independence Day.

Extension of tax relief

A core element of the law is the permanent extension of tax breaks from Trump's first term. These are to be financed, among other things, through cuts in social benefits—a point that has met with fierce criticism from Democrats.

But there are also reservations within their own ranks: Fiscal conservative Republicans complain that the law doesn't go far enough in cutting spending and threatens to further increase the budget deficit. Economists predict that the national debt will rise sharply.

Trump himself has been praising the law for weeks and has continued to increase pressure on his party colleagues to complete the legislative process quickly. This has drawn criticism from Trump's former advisor and entrepreneur Elon Musk, for example.