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North America
The U.S. Senate approved a Republican bill early this morning that aligns with President Donald Trump's immigration, energy, and defense policies, despite his preference for a more extensive House version that includes $4.5tn in tax cuts. The Senate's resolution, which passed 52-48, emphasizes increased defense spending and stricter immigration measures while promoting fossil fuel development. The legislation, which leaves the issue of Mr. Trump's desired extension of his 2017 tax cuts to a later date, will serve as a backup in case House Republicans cannot come to an agreement on how to pay for the tax cuts in their bill without slashing funding for popular safety net programs like Medicaid and Social Security. Senate Budget Chair Lindsey Graham stated: "I hope we can get one big, beautiful bill in the House, but we need to act on border security and national security now." The Senate's $340bn budget resolution allocates an additional $85bn annually for four years to enhance border security and military spending, while the House plan seeks to cover costs through $2tn in spending cuts. Both chambers must agree on a budget to enable Republicans to advance Trump's legislative agenda.
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