Wildfires in Spain burn ten times more land than last year
Data from the European Forest Fire Information System (EFFIS), part of the Copernicus European Environmental Monitoring Programme, shows that 411,315 ...
A sweeping tax-cut and spending bill backed by President Donald Trump is advancing through the U.S. Senate, setting the stage for a high-stakes legislative push that could reshape America’s fiscal landscape for years to come.
The bill, which includes permanent tax reductions, major business incentives, and rollbacks of clean energy programs, is expected to return to the Republican-led House of Representatives for final approval before being signed into law by the president.
The legislation, a central pillar of Trump’s domestic agenda, cleared a key procedural hurdle Saturday night. Senators are now preparing to debate and vote on dozens of proposed amendments before the final vote.
According to estimates from the nonpartisan Congressional Budget Office, the Senate version of the bill would add approximately $3.2 trillion to the national debt over the next decade — a significant increase over the $2.8 trillion projected for the House version, primarily due to the Senate’s decision to make several tax cuts permanent.
Key tax changes
Among the most notable provisions is a permanent increase in the child tax credit to $2,200 per child, indexed to inflation, replacing the current $2,000 credit which is set to decrease in 2026. The standard deduction for married couples would be raised to $32,000 permanently under the Senate plan, compared to a temporary increase under the House proposal.
For businesses, the Senate bill offers permanent 100% expensing of domestic research and development costs and equipment purchases, as well as a permanent expansion of the interest deduction to include earnings before interest, taxes, depreciation, and amortization (EBITDA). These provisions are aimed at stimulating long-term investment but are expected to substantially widen the federal deficit.
State and local tax relief and retirement deductions
The Senate bill temporarily raises the cap on the state and local tax (SALT) deduction from $10,000 to $40,000 through 2029, with inflation adjustments. In a bid to support older Americans, it introduces a $6,000 annual federal income tax deduction for individuals over 65, up from the $4,000 proposed by the House, though both would expire after 2028.
Additionally, the Senate version includes a capped deduction of up to $25,000 on tipped income, a measure not included in the House bill.
Energy and Medicaid provisions spark debate
The bill includes a rollback of clean-energy incentives established under President Joe Biden’s 2022 Inflation Reduction Act. The Senate proposal would end tax credits for solar and wind projects immediately and impose new taxes on energy developments using Chinese components. At the same time, it adds new incentives for coal production, drawing sharp criticism from environmental groups and Democratic lawmakers.
On Medicaid, both House and Senate versions seek to curtail the use of 'provider taxes' — a mechanism states use to leverage additional federal funding. However, the Senate plan delays these changes until 2028 and allocates an additional $25 billion to support rural hospitals, following concerns raised by Republican senators representing rural constituencies.
Debt ceiling and broader implications
The Senate bill includes a provision to raise the federal debt ceiling by $5 trillion, exceeding the $4 trillion increase approved by the House. Lawmakers face a summer deadline to act or risk defaulting on the nation’s $36.2 trillion in debt.
A controversial provision that would have allowed the U.S. to impose retaliatory taxes on countries with 'unfair' tax regimes was dropped from the final bill after Treasury Secretary Scott Bessent advised that it could jeopardize ongoing tax negotiations with G7 partners.
Language limiting federal judges' authority to block nationwide policies was also removed, after a ruling from the Senate parliamentarian that it violated budget reconciliation rules.
What’s next
With final Senate passage expected in the coming days, attention will shift to the House of Representatives, where Republicans are poised to support the bill. If passed, the legislation would mark one of the most consequential overhauls of U.S. tax policy since Trump’s first term.
While Republican leaders hail the bill as a necessary boost to economic growth and competitiveness, critics warn of long-term consequences for the federal deficit, income inequality, and climate goals.
The final vote is expected before the 4 July recess.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
A major fire has broken out at Hamburg’s city port, leaving several people injured.
Data from the European Forest Fire Information System (EFFIS), part of the Copernicus European Environmental Monitoring Programme, shows that 411,315 hectares of forest and rural land have burned in Spain so far this year — roughly ten times more than the 42,615 hectares affected in 2024.
Venezuelan President Nicolás Maduro has ordered a reinforcement of the “Relámpago del Catatumbo” operation, extending it to Tachira state under Peace Zone One.
North Korea has criticised the joint military exercises between the US and South Korea, with state media reporting that the drills demonstrate Washington’s intent to “occupy” the Korean peninsula and target its regional adversaries.
On Monday, Russia claimed its forces had carried out extensive strikes on Ukrainian drone bases and other military targets over the past 24 hours, while Ukraine reported having destroyed a significant amount of Russian military hardware.
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