US Senate passes ‘One Big Beautiful Bill’ with Medicaid cuts, new remittance tax

The U.S. Senate on Monday passed a sweeping federal tax and spending bill, dubbed the One Big Beautiful Bill Act (OBBBA), in a razor-thin 51–50 vote. Vice President JD Vance cast the tie-breaking vote, sending the legislation—already approved by the House in May—closer to President Donald Trump’s desk.

The bill, praised by Republicans as a path to economic growth and stability, has sparked backlash from Democrats and local officials who argue it will deepen inequality and gut essential social programs. Among its most contentious provisions are deep cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), as well as the introduction of new fees for asylum seekers and immigrants.

OBBBA would make permanent key provisions of the 2017 Tax Cuts and Jobs Act and includes a permanent increase in the child tax credit to $2,200 (up from $2,000). It also raises the SALT (state and local tax) deduction cap to $40,000 and establishes a 1% tax on remittances, a move likely to disproportionately affect Caribbean-American and other immigrant families who send money abroad. The original House version had proposed a 3.5% remittance tax but included reimbursements for U.S. citizens.

The bill is projected to slash over $1.2 trillion in federal spending, primarily from Medicaid. Among the changes: new work requirements for recipients aged 19–64, more frequent eligibility checks, and reductions in provider tax rates that help states fund the program. Green card holders would face a five-year waiting period before becoming eligible for Medicaid.

Immigrants on temporary protected status or humanitarian parole would face hundreds of dollars in new application fees—$550 for work authorization and $500 for TPS itself. Nonimmigrant visa fees would also rise to $250.

The vote came just hours after SBA Administrator Kelly Loeffler published an op-ed in Fox News praising the bill for delivering “real tax relief” to America’s 34 million small businesses, including many run by Caribbean-American entrepreneurs. Loeffler cited permanent tax deductions and the removal of taxes on tips and overtime as key benefits that would drive hiring and economic activity on Main Street.

“The bill makes the 2017 tax cuts permanent… leaving more capital in the hands of America’s 34 million small business owners to hire, expand and reinvest,” she wrote, projecting the legislation could generate up to 1 million jobs and $750 billion in economic activity over the next decade.

But critics say the bill’s benefits skew heavily toward the wealthy, and its cuts to public services will hurt vulnerable communities—including many Caribbean-American families—across the country.

“Senate Republicans have betrayed America’s working families,” said Coral Springs Vice Mayor Nancy Metayer Bowen in a statement Tuesday. “By reducing funding for essential healthcare and food assistance while expanding tax benefits for the wealthiest Americans, this legislation abandons the very people our government is meant to serve.”

Bowen, a public health advocate and one of the most prominent Caribbean-American elected officials in Florida, warned that the bill “threatens to weaken” the foundations of public health and economic security. She urged the House to reject the legislation, calling it “economic injustice.”

The bill now heads back to the House, where it still faces opposition. An earlier version passed by just one vote. President Trump has set a July 4 deadline for Congress to send him the final version to sign into law.