Senate Passes Sweeping GOP Tax and Spending Bill with Deep Cuts to Social Programs: What Catholics Should Know

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In a dramatic 51-50 vote, Senate Republicans passed President Trump’s long-anticipated domestic policy bill just ahead of the July 4 deadline—legislation that could reshape the federal budget and directly impact millions of vulnerable Americans. Vice President JD Vance broke the tie, while three GOP senators—Susan Collins (R-ME), Thom Tillis (R-NC), and Rand Paul (R-KY)—voted against it.

The bill includes trillions in tax cuts by extending the 2017 provisions, increased spending on defense and border security, and significant rollbacks in federal programs that serve the poor, elderly, and disabled. For Catholics concerned with social justice and the dignity of the human person, the bill raises critical questions about the balance between economic policy and care for the marginalized.

According to the Congressional Budget Office, the bill would increase the deficit by more than $3 trillion over ten years, largely due to the cost of the extended tax cuts. To offset some of that expense, lawmakers proposed deep cuts to Medicaid, food assistance through SNAP, and clean energy incentives—areas that touch directly on Catholic principles of care for creation and the preferential option for the poor.

Senator Collins, who ultimately opposed the bill, cited its impact on the nation’s most vulnerable, stating, “My vote against this bill stems primarily from the harmful impact it will have on Medicaid, affecting low-income families and rural health care providers like our hospitals and nursing homes.” (source: Senate statement)

The legislation imposes new work requirements for Medicaid recipients, including parents of older children, and scales back provider taxes, a move that some warn could collapse rural healthcare systems. To blunt the blow, the bill includes a $50 billion fund for rural hospitals beginning in 2026—but for many, that compromise wasn’t enough. Senator Lisa Murkowski (R-AK), who described the vote as “agonizing,” said, “I struggled mightily with the impact on the most vulnerable in this country… We do not have a perfect bill by any stretch of the imagination.” (source: Senate remarks)

The bill also eliminates the $7,500 federal tax credit for electric vehicles and slashes credits for wind and solar power, reversing key provisions of the Inflation Reduction Act. For Catholic environmental advocates, these rollbacks mark a step away from Laudato Si’-inspired reforms that honor our call to steward the earth.

Senate Majority Leader John Thune (R-SD) defended the bill, calling it a fulfillment of their mandate. “We’re fulfilling the mandate we were entrusted with last November and setting our country and the American people up to be safer, stronger and more prosperous,” Thune said. (source: press statement)

Meanwhile, the legislation’s future in the House remains uncertain. Speaker Mike Johnson (R-LA) now faces the challenge of uniting a deeply fractured GOP majority to pass the Senate version without significant changes. Johnson remained optimistic, saying, “The American people gave us a clear mandate, and after four years of Democrat failure, we intend to deliver without delay.” (source: House statement)

Catholics attentive to the Church’s social teaching—especially the rights of the poor, the elderly, and the dignity of work—may see this legislation as emblematic of a deeper tension in American political life: the push for economic freedom and lower taxes on one side, and the moral obligation to care for those in need on the other.

Senate Minority Leader Chuck Schumer (D-NY) condemned the bill, warning that “Americans will pay the price for this perfidy for generations.” (source: press conference)

The United States Conference of Catholic Bishops (USCCB) has not yet issued a formal statement on the vote, but in the past has strongly opposed legislation that jeopardizes access to health care or weakens the nation’s safety net. As the bill heads to the House and potentially to President Trump’s desk, Catholic voters and leaders alike are likely to follow closely—aware that how we care for the poor is not just political, but profoundly moral.

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