After the House passed the reconciliation tax package in a narrow vote of 215-214 on May 22, 2025, all eyes are now on the Senate as they prepare to take up the legislation. Majority Leader John Thune (R-SD) is tasked with shepherding the One Big Beautiful Bill (OBBB) Act through the Senate while seeking to address a range of concerns from Republican members. The legislation will also undergo a “Byrd Bath” to ensure it complies with Senate reconciliation rules. The Byrd rules require that provisions have a budget impact and do not increase the budget outside of the 10-year window without offsets. Several senators, including Mike Lee (R-UT) and Ron Johnson (R-WI), have called for significantly larger spending cuts to help address the country’s growing debt. Sen. Rand Paul (R-KY) has said he will not vote to increase the debt ceiling and Sen. Josh Hawley (R-MO) has emerged as a strong opponent of Medicaid cuts.

Thune told reporters on June 4, 2025, that a repeal of the estate tax will not likely be in the Senate’s version of the tax bill. Thune said he expects the estate tax to stay at the level set in the House bill. The House bill permanently extends a higher estate tax exemption from the Tax Cuts and Jobs Act of 2017 (TCJA), which expires after 2025 and sets the exemption at $15 million in 2026, adjusted for inflation thereafter.

Complicating matters, Elon Musk, who announced he is stepping down as head of the Department of Government Efficiency (DOGE), expressed his dissatisfaction with the tax bill. Musk argued the tax bill undercuts his recent efforts to slash government spending due to the significant increase to the budget deficit that the bill includes. Read more here.