Trump Tax Cuts: Senate Vote Needed
- house of Representatives narrowly approved President Donald Trump's budget bill on May 22, a move that arrives amid growing concerns about the nation's fiscal health and increasing deficits.
- This vote followed moody's decision on May 16 to strip the United States of its triple-A credit rating, reflecting worries about the country's increasing debt burden.
- The rising fiscal risk is reflected in the bond market, where the yield on 30-year Treasuries has climbed to 5.1%, the highest level since 2007.
President Trump’s budget bill cleared the House by a razor-thin margin on may 22nd, sparking fresh debate about the soaring national debt, directly impacted by his proposed tax cuts. Moody’s downgraded the U.S. credit rating, adding to the fiscal storm. Treasury yields surged to a 17-year high, signaling investor anxiety about the country’s financial trajectory. With the House vote complete, the legislation now faces the Senate‘s scrutiny, where its fate hangs in the balance, with implications for the U.S. economy. News Directory 3 provides breaking news on these developments. Discover what’s next as the Senate prepares to vote.
Trump Budget Passes House Amid Rising Deficit Concerns
updated May 26, 2025
The U.S. house of Representatives narrowly approved President Donald Trump’s budget bill on May 22, a move that arrives amid growing concerns about the nation’s fiscal health and increasing deficits. The budget, passed by a single vote, includes tax cuts that are projected to further increase the national debt.
This vote followed moody’s decision on May 16 to strip the United States of its triple-A credit rating, reflecting worries about the country’s increasing debt burden. Over the past year, the federal government’s borrowing has reached $2 trillion, or 6.9% of the gross domestic product, despite the absence of a major economic crisis.
The rising fiscal risk is reflected in the bond market, where the yield on 30-year Treasuries has climbed to 5.1%, the highest level since 2007. This increase occurred during a period of meaningful selling, indicating investor unease about the U.S. financial outlook and the impact of the new budget on the national debt.
What’s next
The budget now heads to the Senate, where it faces an uncertain future amid continued debate over its impact on the national debt and the overall U.S. economy. Further market reactions are expected as investors digest the implications of the budget and the downgrade of the U.S. credit rating.