According to Bloomberg, Senate Republicans have passed a budget resolution advancing President Donald Trump’s push to extend his 2017 tax cuts, while also raising the debt ceiling by $5 trillion.

The move, approved 51-48 in a pre-dawn vote, enables $1.5 trillion in new tax reductions over the next decade, aiming to reassure financial markets rattled by Trump’s sweeping tariffs. 

The resolution provides a legislative vehicle to renew expiring tax cuts for individuals and small businesses and includes new priorities like eliminating taxes on tipped wages and overtime and creating deductions for car buyers and seniors.

However, lawmakers face tight constraints: more than 200 tax cut requests have been submitted, and Republicans must keep the total cost within their $1.5 trillion cap, Bloomberg reports. 

The plan also calls for $150 billion in new military spending and $175 billion for immigration enforcement. Democrats slammed the proposal as favoring the wealthy, warning that middle- and lower-income households will suffer most from tariff-related price hikes.

Meanwhile, some House fiscal conservatives criticized the plan for not including deeper spending cuts. 

As the House takes up the resolution next week, House Speaker Mike Johnson must navigate internal GOP divisions to push the measure forward and pave the way for a final tax package by summer, according to Bloomberg.